Florida Amendment 3: The Proposed $250,000 Homestead Exemption Explained

On November 3, 2026, Florida voters will decide on one of the most significant property tax changes in the state's history. Amendment 3 -- officially titled "Save our Homes from Excessive Property Taxes" -- would increase the homestead exemption from $50,000 to $250,000 for non-school property taxes. If approved by at least 60 percent of voters, the change would begin taking effect January 1, 2027.

The amendment originated as HJR 1F, passed during a special legislative session called by Governor DeSantis in June 2026. It cleared the Florida House 75-26 and the Senate 30-9. A companion implementation bill, SB 4F, was signed into law by the Governor on June 24, 2026.

How the current homestead exemption works

Florida's existing homestead exemption is worth up to $50,000 for owner-occupied primary residences. It is split into two parts. The first $25,000 applies to all property taxes, including school district taxes. The second $25,000 applies only to non-school taxes (county, city, and special district levies) and only covers assessed value between $50,000 and $75,000. There is a gap: assessed value between $25,000 and $50,000 is fully taxable.

In 2024, Florida voters approved Amendment 5, which ties that second $25,000 exemption to annual inflation adjustments starting January 1, 2025. The exemption can increase with inflation but can never drop below $50,000.

What Amendment 3 would change

Amendment 3 would dramatically expand the homestead exemption for non-school property taxes in two phases.

• 2027: The non-school homestead exemption increases from $50,000 to $150,000.
• 2028 and beyond: The exemption increases to $250,000 and is indexed to annual inflation going forward.
• School district taxes: The existing $25,000 school tax exemption stays the same. Amendment 3 does not change school district property taxes.
• Non-homestead properties: The annual assessment increase cap on non-homestead property (rentals, commercial, second homes) would drop from 10 percent to 5 percent.

The five-year residency requirement for new residents

One of the most discussed provisions is a residency tier system. Homeowners who are permanent Florida residents by December 31, 2026, receive the full expanded exemption immediately when it takes effect. Homeowners who establish Florida residency after that date receive only the standard $50,000 exemption for their first five years, then qualify for the full $250,000 exemption.

Local cities and counties have the option to shorten that five-year waiting period, but cannot extend it. This provision has drawn attention from buyers planning a move to Florida, since the timing of establishing residency could affect property tax savings for several years.

What this means in real dollars

The impact depends on your home's assessed value and your local millage rate. Here is a simplified example using a combined non-school millage rate of roughly 15 mills (a reasonable estimate for many Southwest Florida communities).

Under the current $50,000 exemption, a home assessed at $400,000 has $350,000 in non-school taxable value. At 15 mills, that is roughly $5,250 in non-school property taxes. Under the proposed $250,000 exemption, taxable value drops to $150,000, and non-school taxes drop to roughly $2,250 -- a savings of about $3,000 per year.

For a home assessed at $250,000 or less, the non-school property tax bill would go to zero. State estimates suggest roughly 60 percent of Florida homesteaded properties would see their non-school property taxes entirely eliminated under the $250,000 exemption.

Path toward full elimination

Amendment 3 also directs the Florida Legislature to develop a schedule for the full elimination of homestead property taxes through future legislation. No specific end date is set in the amendment itself. This means full elimination would require additional legislative action and potentially another constitutional amendment down the road.

Fiscal impact on local governments

The amendment would reduce revenue for counties, cities, and special districts that rely on property tax revenue. Legislative staff analyses estimate the following annual revenue reductions for local governments.

• 2027-28: approximately $4.6 to $5.0 billion
• 2028-29: approximately $8.78 to $8.8 billion
• 2029-30: approximately $9.7 billion
• 2030-31: approximately $10.75 billion
• 2031-32: approximately $11.86 to $12.0 billion

What supporters say

Supporters argue that rising property values and insurance costs have made Florida increasingly unaffordable for homeowners, even as the state has no income tax. They point out that the exemption increase would provide immediate, tangible relief to millions of Florida families. Governor DeSantis called the special session specifically to advance this measure.

What opponents say

Opponents, including some county officials and policy groups, have raised concerns about the impact on local government budgets. Florida counties fund services like fire rescue, law enforcement, parks, libraries, and infrastructure through property tax revenue. Critics warn that smaller and rural counties could face disproportionate budget pressure. Senate Appropriations Chair Ed Hooper noted during debate that property tax issues that work well for one county could negatively affect others.

The Florida Policy Institute has raised concerns that the revenue losses could lead to cuts in local services or shifts to other revenue sources like sales taxes or fees.

The Save Our Homes cap remains in place

The existing Save Our Homes cap -- which limits annual assessed value increases on homesteaded property to 3 percent or the Consumer Price Index, whichever is less -- is not changed by Amendment 3. SOH portability, which allows homeowners to transfer their accumulated SOH benefit to a new Florida home, also remains in place.

Timeline and what to watch

• November 3, 2026: Voters decide on Amendment 3. It requires 60 percent approval to pass.
• January 1, 2027: If approved, the $150,000 non-school exemption takes effect for existing Florida residents.
• January 1, 2028: The exemption increases to $250,000 with inflation indexing.
• New residents after December 31, 2026 receive the standard $50,000 exemption for their first five years.

What this means for buyers and sellers

For buyers already living in Florida or planning to establish residency before year-end 2026, the potential tax savings are significant -- especially on homes assessed under $250,000 where non-school taxes could go to zero. For buyers moving from out of state after 2026, the five-year waiting period means the full benefit is delayed, but the exemption still increases substantially after the waiting period ends.

For sellers, reduced property tax burdens could make Florida even more attractive to buyers, supporting demand and home values across the state.

This is general information about a proposed constitutional amendment -- not tax or legal advice. For specifics on how Amendment 3 would affect your property, consult your county property appraiser or a licensed tax professional.