Florida Amendment 3 Passes! What It Means for Homeowners, Buyers, and Real Estate Investors

Big Changes Are Coming to Florida Property Taxes in 2027 and Beyond!

By Judith M. Faldetta, P.A. | Broker Associate, GRI | Florida Licensed Real Estate Instructor | Realty ONE Group MVP

November 5, 2026

Florida homeowners and real estate investors have something important to celebrate! On November 3, 2026, Florida voters approved Amendment 3 with approximately 62% of the vote, bringing significant changes to the state's property tax system.

For homeowners in Punta Gorda, Port Charlotte, Cape Coral, Fort Myers, and throughout Southwest Florida, these changes could mean substantial property tax savings. Investors and owners of second homes may also benefit from new protections against rising property assessments.

But what exactly does Amendment 3 change, and how will it affect your property?

Let's break it down.

1. Major Property Tax Relief for Homesteaded Homeowners

One of the biggest benefits of Amendment 3 is the significant increase in Florida's homestead exemption.

Previously, qualifying homeowners generally received approximately $50,000 in exemptions from non-school property taxes.

Under Amendment 3, that exemption increases dramatically:

Tax Year	Homestead Exemption for Non-School Taxes
2026	Approximately $50,000
2027	$150,000
2028	$250,000
2029 and beyond	$250,000 adjusted for inflation

What does this mean for your wallet?

Let's look at a simplified example.

Suppose your primary residence has an assessed value of $350,000.

Beginning in 2028, the first $250,000 could be exempt from non-school property taxes, leaving only $100,000 subject to those taxes.

Before Amendment 3, approximately $300,000 of that assessed value would have been subject to non-school taxes.

If your combined non-school property tax rate is 10 mills (1%), that could represent approximately $2,000 in annual savings compared with the previous exemption structure.

Actual savings will vary depending on your property's assessed value, local tax rates, other exemptions, and applicable assessments.

Important: School property taxes are not eliminated. The increased exemption applies to non-school property taxes, and non-ad valorem assessments may still appear on your tax bill.

2. What Happens to Your Save Our Homes Protection?

Good news for longtime Florida homeowners!

Amendment 3 does not eliminate Florida's existing Save Our Homes benefit.

If your property qualifies for homestead protection, annual increases in assessed value generally remain limited to the lesser of:

• 3% annually

• The annual change in the Consumer Price Index (CPI)

This means qualifying homeowners can benefit from both the increased homestead exemption and continued protection against rapidly increasing assessments.

Florida's existing portability provisions also remain in place, allowing eligible homeowners to transfer accumulated Save Our Homes assessment benefits when purchasing another qualifying Florida homestead.

For homeowners considering downsizing, relocating, or purchasing another primary residence, understanding these benefits can make a significant financial difference.

3. Real Estate Investors Benefit Too!

While rental properties, vacation homes, commercial buildings, and second homes do not qualify for the increased homestead exemption, Amendment 3 provides another important benefit.

The annual assessment increase cap on qualifying non-homestead properties drops from 10% to 5%, beginning in 2027.

This applies to non-school property tax assessments.

For investors who own rental homes in Charlotte, Lee, and Sarasota counties, this could provide greater predictability when estimating future property taxes.

Example: Investment Property

Consider a rental property with a current assessed value of $300,000.

Under the previous 10% annual assessment cap, the assessed value could potentially increase by as much as $30,000 in one year.

Under the new 5% cap, that increase would generally be limited to $15,000 for non-school tax purposes.

That is a $15,000 difference in potential assessed value growth for that year.

While this does not guarantee a lower property tax bill, it can help limit assessment increases and provide investors with more predictable long-term operating expenses.

Why does this matter?

Property taxes are a major consideration when calculating rental income, cash flow, and return on investment.

Greater predictability in property assessments may help investors make more informed decisions about purchasing, holding, and managing Florida real estate.

Keep in mind that a change in ownership may result in reassessment, and tax rates can still change.

4. What About New Florida Residents and Buyers?

Amendment 3 introduces an important distinction between established Florida residents and those moving into the state after December 31, 2026.

Residents who meet the applicable residency and homestead requirements may qualify for the increased exemption beginning in 2027.

However, individuals who were not Florida residents as of December 31, 2026, generally must wait until their fifth year of qualifying for homestead exemption before receiving the expanded benefit.

New residents can still qualify for the existing homestead exemption while waiting.

This makes understanding Florida residency requirements, homestead eligibility, and the timing of a home purchase especially important.

If you're considering relocating to Southwest Florida, knowing these rules before purchasing could help you plan your future housing expenses more accurately.

5. Will Amendment 3 Increase Florida Property Values?

This is a question many homeowners and investors are already asking.

Lower property tax expenses could make Florida homeownership more affordable for certain buyers.

Potential market effects include:

• Improved affordability: Reduced property taxes could lower the ongoing cost of owning a qualifying primary residence.

• Increased buyer interest: Long-term tax benefits may make Florida attractive to some prospective homeowners.

• Greater incentive to remain in a home: Existing homeowners may find it more financially attractive to maintain their Florida homestead.

• More predictable investment expenses: The lower assessment cap may benefit investors holding properties over time.

However, these are potential market effects, not guaranteed outcomes.

Home values will continue to depend on inventory, mortgage interest rates, insurance costs, location, property condition, and buyer demand.

Here in Southwest Florida, where insurance and ownership expenses are major considerations, understanding the total cost of homeownership is more important than ever.

6. Will Property Taxes Eventually Be Eliminated?

Amendment 3 also establishes a framework for potentially expanding homestead exemptions further in the future.

The Legislature must provide a procedure allowing local governments to increase exemptions, potentially covering the full assessed value for certain non-school taxes.

However, Amendment 3 does not automatically eliminate all property taxes.

Additional legislative and local government action would be necessary.

There are also important questions about how local governments will fund services, including infrastructure, emergency services, and other community needs.

Counties and municipalities may need to adjust budgets, tax rates, or certain fees in response to reduced property tax revenue.

The actual financial impact will become clearer as the amendment is implemented.

7. What Should Florida Property Owners Do Now?

Whether you own your primary residence, a vacation home, or investment property, now is a good time to review your real estate holdings.

For homesteaded homeowners: Verify your homestead exemption, review your assessed value, and estimate your potential savings for 2027 and 2028.

For buyers relocating to Florida: Understand the new residency requirements, homestead eligibility, and how a purchase may affect future property taxes.

For investors: Reevaluate long-term property tax projections, rental operating expenses, and acquisition strategies using the new assessment limitations.

For homeowners considering selling: Review your current market value, accumulated Save Our Homes benefits, and potential portability before making a move.

The Bottom Line: A Significant Change for Florida Real Estate

Florida's Amendment 3 represents one of the most significant changes to the state's property tax structure in years.

For qualifying homesteaded homeowners, the expanded exemption could provide meaningful annual savings.

For real estate investors, the reduced assessment increase cap offers another layer of protection against rising property assessments.

And for buyers and sellers, these changes introduce new considerations when evaluating the financial benefits of owning property in Florida.

As a Broker Associate with over 22 years of real estate experience and a Florida Licensed Real Estate Instructor, I believe understanding these changes is essential to making informed real estate decisions.

Whether you're considering buying, selling, downsizing, relocating, or investing in Southwest Florida, I'm here to help you understand your options and navigate the changing real estate market.

Let's Talk About Your Southwest Florida Real Estate Goals!

Judith M. Faldetta, P.A.

Broker Associate | GRI | Florida Licensed Real Estate Instructor

Realty ONE Group MVP

Serving Punta Gorda, Port Charlotte, Charlotte County, Lee County, and Sarasota County

Call or Text: 239-841-5650

Email: judithfaldettaPA@gmail.com

Selling the Sunshine State One House at a Time!

Disclaimer: This article provides general real estate information and is not tax or legal advice. Property tax savings depend on individual eligibility, assessed values, tax rates, and implementation of Amendment 3. Consult your county property appraiser or a qualified tax professional for advice specific to your property.