Moving to Florida? How the Proposed Five-Year Homestead Rule Could Affect Your Property Taxes

If you are planning a move to Florida, there is a major property tax change on the ballot this November that could affect your timeline. Amendment 3, set for a vote on November 3, 2026, would increase the homestead exemption from $50,000 to $250,000 for non-school property taxes. But it includes a provision that treats new residents differently from existing ones.

The residency cutoff: December 31, 2026

Under the proposed amendment, Florida homeowners who are permanent residents by December 31, 2026, qualify for the full expanded exemption as soon as it takes effect on January 1, 2027. Homeowners who establish Florida residency after that date would receive only the standard $50,000 exemption for their first five years, then qualify for the full $250,000 exemption.

Local cities and counties would have the option to shorten the five-year waiting period for new residents, but they cannot extend it beyond five years.

What counts as establishing Florida residency

Florida residency for homestead purposes generally requires that you make the property your permanent home. Key steps include filing for homestead exemption with your county property appraiser, obtaining a Florida driver license, registering to vote in Florida, and filing a Declaration of Domicile with your county clerk. You must apply for homestead exemption by March 1 of the tax year you want the exemption to take effect.

The December 31, 2026, cutoff in the amendment refers to when you become a permanent Florida resident -- not when you buy a home. Buying a home alone does not establish residency.

A real-dollar comparison for new vs. existing residents

Consider a home in Lakewood Ranch assessed at $400,000 with a combined non-school millage rate around 15 mills.

• Existing resident (by Dec 31, 2026): Non-school taxable value drops from $350,000 to $150,000 under the $250,000 exemption. Annual non-school tax bill: approximately $2,250. Savings vs. today: roughly $3,000 per year.
• New resident (after Dec 31, 2026): Non-school taxable value stays at $350,000 under the standard $50,000 exemption for the first five years. Annual non-school tax bill: approximately $5,250. After year five, the full exemption applies.
• Over five years, the difference in non-school property taxes between an existing resident and a new resident on this same home would be roughly $15,000.

Should you rush to establish residency before 2027

That depends on your personal situation. The amendment has not been approved by voters yet -- it requires 60 percent approval on November 3, 2026, to pass. Making a major relocation decision based solely on a ballot measure that may or may not pass carries risk.

If you are already planning a move to Florida and your timeline is flexible, establishing residency by December 31, 2026, could position you for the full expanded exemption if the amendment passes. But buying a home should always be driven by whether the home, community, and price are right for you -- not solely by a potential tax benefit.

The current homestead exemption still applies

Regardless of whether Amendment 3 passes, all Florida homestead owners -- new and existing -- receive the current $50,000 homestead exemption. The first $25,000 applies to all property taxes including school taxes. The second $25,000 applies to non-school taxes on assessed value between $50,000 and $75,000.

Florida also has the Save Our Homes cap, which limits annual increases in your assessed value to 3 percent or the Consumer Price Index, whichever is less. This protection applies from the day you homestead your property and accumulates over time, regardless of what happens with Amendment 3.

What about the non-homestead assessment cap

Amendment 3 also proposes reducing the annual assessment increase cap on non-homestead property -- including rental properties, vacation homes, and commercial properties -- from 10 percent to 5 percent. This change would benefit investors and second-home owners across the state.

Bottom line for buyers

Amendment 3 is one of the most significant proposed property tax changes in Florida history. If it passes, it would substantially reduce non-school property taxes for homestead owners and make Florida even more attractive for buyers. The five-year waiting period for new residents is real, but it is not permanent -- and the standard $50,000 exemption plus Save Our Homes protections still apply from day one.

This is general information about a proposed ballot measure -- not tax or legal advice. The amendment must be approved by voters in November 2026 and is not guaranteed to pass. For advice specific to your situation, consult a licensed tax professional or your county property appraiser.