A client emailed me this week asking whether there’s a new law affecting property taxes in Florida. There is. Here’s what passed and what it actually changes.
Yes, there is a new law
Florida voters approved Amendment 3 on November 3, 2026 with roughly 62% of the vote, clearing the 60% needed to change the state constitution. It takes effect January 1, 2027.
Today a homesteaded Florida owner gets up to $51,411 in exemptions: $25,000 that applies to all taxes including schools, and a second inflation-adjusted portion that applies only to non-school taxes.
Amendment 3 replaces that second portion with a much larger exemption from non-school taxes:
2026 (current law): $51,411 total, of which $25,000 also applies to school taxes
- 2027: $150,000 exempt from non-school taxes
- 2028 and after: $250,000, adjusted for inflation
School taxes are untouched. The existing $25,000 school exemption stays, so no homestead bill drops to zero.
The amendment also lowers the annual cap on assessment increases for non-homestead property — second homes, rentals and commercial — from 10% to 5%.
What it looks like on a $500,000 home
Using an average Broward County rate of about 19.84 mills (roughly 6.48 school, 13.36 non-school), a homesteaded $500,000 home runs about:
2026: about $9,071
- 2027: about $7,754, a savings of roughly $1,317
- 2028: about $6,418, a savings of roughly $2,653 a year
Your exact numbers depend on your city and taxing district. Combined rates across Broward run anywhere from about 16 to 23 mills, and Palm Beach County figures differ. I’m happy to run the real numbers on a specific property.
If you’re moving to Florida, the deadline is December 31
This is the part most people miss. To get the expanded exemption on the normal schedule, you need to be a permanent Florida resident by December 31, 2026. Establish residency after that and you’re limited to roughly the old exemption amount for five years.
Note what this does and doesn’t require. You don’t have to buy a home this year. If you establish residency now and buy in 2027, you still get the full exemption when you homestead. Becoming a resident is the deadline. Closing on a house is not.
For a relocating buyer, that distinction is worth thousands of dollars over five years.
Four things worth knowing
Homestead still has to be filed. The exemption is based on ownership and residency as of January 1, and the application deadline is March 1. It is not automatic when you close.
Your first-year bill resets. When you buy, the assessed value resets to your purchase price. A long-time owner’s tax figure on a listing can be a fraction of what the next owner will pay, so always look at what the bill becomes, not what it is.
Tax rates are not frozen. The exemption lowers your taxable value, but cities and counties still set their own millage. If they raise rates to make up lost revenue, owners who don’t get the homestead exemption feel it most. The new 5% assessment cap softens that, but the shift is real.
Full elimination isn’t here. The amendment directs the Legislature to create a path toward eliminating non-school homestead taxes, but there’s no deadline attached. Plan around the numbers above and treat anything further as upside.
The bottom line
If you own and homestead your primary residence, this is real money starting with your 2027 bill and more in 2028.
If you’re relocating to Florida, December 31 is the date that matters. Residency, not a closing.
If you own a second home or an investment property, the lower 5% assessment cap helps, but watch what your city and county do with their rates.
If you’re considering a move up, be realistic about scale. A $250,000 exemption is meaningful on a $600,000 home and close to a rounding error on a $3 million one. What keeps long-time owners in place is the Save Our Homes assessment cap, not the exemption, and Amendment 3 doesn’t change that.
If you want to know what any of this means for your property or one you’re considering, send me the address and I’ll run the actual numbers.
Meghan Romanelli, Real Estate Advisor, The Premier Group, Compass Boca
meghan.s.romanelli@compass.com | 954-405-2719
General information only, not tax or legal advice. Confirm details with your county property appraiser or a tax professional.
