Florida voters approve Amendment 3 with bigger homestead tax break

Florida voters approved Amendment 3, which raises the state's homestead exemption to $250,000 by 2028 and sets a December 31, 2026 residency deadline for earlier eligibility. The change could reshape property tax costs for homeowners and people considering a move to Florida.

Why it matters: - Amendment 3 changes Florida property taxes for homeowners, second-home owners, investors and commercial property owners. - The measure could lower long-term housing costs for qualifying homeowners while reducing future assessment growth on non-homestead properties. - The December 31, 2026 residency deadline gives would-be Florida residents a clear cutoff for earlier access to the expanded homestead benefit.

What happened: - Florida voters approved Amendment 3 on Nov. 4, 2026. - The homestead exemption for qualifying homeowners rises to $150,000 on Jan. 1, 2027. - The exemption increases again to $250,000 in 2028. - Inflation adjustments begin in 2029. - The new homestead amounts apply to property taxes other than school district taxes. - The annual assessment increase cap on non-homestead properties drops from 10% to 5%.

The details: - The lower assessment cap applies to second homes, investment properties and commercial real estate. - People who establish Florida residency by Dec. 31, 2026 may qualify for the expanded homestead exemption sooner after they establish an eligible homestead. - People who become Florida residents on or after Jan. 1, 2027 generally must wait until their fifth year of homestead exemption eligibility to receive the higher benefit. - West Palm Beach Realtor Christie Di Lemme said the change gives prospective buyers another reason to explore Florida homeownership now. - Di Lemme said Florida's no state personal income tax remains part of the state's appeal.

Between the lines: - The timing matters as much as the tax changes themselves. - Buyers considering a move to Florida now have a deadline that could affect how quickly they benefit from the new exemption. - The amendment may also influence how investors and owners of second homes think about holding costs in Florida.

What's next: - Eligible homeowners will see the first step-up in the exemption in 2027. - The larger exemption amount takes effect in 2028. - People planning to relocate to Florida before the cutoff date will likely need to establish residency and secure an eligible homestead before Dec. 31, 2026. - Florida homebuyers will continue weighing property taxes alongside mortgage payments, insurance and other ownership costs.

The bottom line: - Amendment 3 creates a bigger future tax break for Florida homeowners, but the biggest advantage may go to people who establish residency before the end-of-2026 deadline.