By Simon Gedz, Local Realtor
Charles Rutenberg Realty · 30+ years of South Florida market expertise · Published 2026-09-04T00:00:00.000Z
On November 3, 2026, Florida voters will decide on Amendment 3 — the Homestead Tax Exemptions, Property Assessments, and Spending Restrictions Amendment. Billed by supporters as "Save Our Homes from Excessive Property Taxes," the measure would make some of the most significant changes to Florida property tax law in decades. Whether you already own a home in Fort Lauderdale, Boca Raton, or Palm Beach, or you are considering buying or investing in South Florida real estate, the outcome matters for your annual carrying costs and the broader services that support property values.
What Amendment 3 Would Change
A "yes" vote supports a constitutional amendment that makes four major changes to how Florida taxes property and how local governments use the revenue:
| Provision | What It Does |
|---|---|
| Larger homestead exemption | Raises the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, then indexes it to inflation starting in 2029. |
| New-resident phase-in | New Florida residents receive a smaller exemption until they have lived in the state for five years. |
| Lower non-homestead cap | Cuts the annual assessed-value increase cap for non-homestead properties from 10% to 5%, except for school taxes. |
| Local spending restrictions | Limits how counties and municipalities may spend property tax revenue on public safety, education, infrastructure, natural resources, flood control, bonds, retirement benefits, and operations. |
The existing $25,000 homestead exemption for school district taxes would remain, creating two separate exemptions: one for school taxes and a larger one for all other local property taxes.
How Florida Homestead Taxes Work Today
A homestead exemption lets homeowners who use a property as their primary residence shield part of the assessed value from property taxes. In Florida, a home's assessed value starts at market value when first assessed. After that, annual increases are limited to 3% or the change in the Consumer Price Index, whichever is lower, unless the property changes ownership or another reassessment event occurs. Voters approved that 3% cap through Amendment 10 in 1992.
The taxable value of a home is the assessed value minus any exemptions. Local taxing authorities then apply millage rates to that taxable value. Article VII, Section 9(b) of the Florida Constitution caps most local property tax rates at 10 mills — $1,000 per $100,000 of taxable value — for each taxing authority. A homeowner may pay taxes to several authorities, including the county, municipality, school district, and special districts.
For example, in Miami the combined millage rate in 2025 was 19.9878 mills, meaning a homeowner paid roughly $1,999 in property taxes for every $100,000 of taxable value. Because South Florida home values are high, even small changes to exemptions and caps can produce large dollar differences in annual tax bills.
The Revenue Impact: $4.6 Billion, Then $8.4 Billion
Legislative staff estimate Amendment 3 would reduce local government revenue across Florida by approximately $4.6 billion in fiscal year 2027-28 and $8.4 billion in fiscal year 2028-29. Because property taxes fund the majority of local government budgets, the reduction raises practical questions about how cities and counties would maintain services, infrastructure, and credit ratings.
Potential Local Government Responses
- •Service pressure on parks, libraries, waste management, and community programs, even with protections for some public safety spending.
- •Credit rating risk flagged by rating agencies, which could raise municipal borrowing costs and make infrastructure projects more expensive.
- •Fee and assessment shifts. Local governments may look to non-ad valorem fees, utility charges, or sales tax mechanisms to replace lost revenue.
- •Uneven impact by community. Smaller, primarily residential municipalities without a large commercial tax base may feel adjustments more acutely.
How Amendment 3 Reached the Ballot
In Florida, a constitutional amendment placed by the legislature requires a 60% supermajority vote during a single legislative session. On May 27, 2026, Governor Ron DeSantis called a special legislative session for June 1-3, 2026, to consider what he called the Save Our Homes from Excessive Property Taxes Amendment.
On June 1, 2026, State Representative Toby Overdorf introduced the amendment as House Joint Resolution 1 (HJR 1). The Florida House of Representatives passed HJR 1 on June 2, 2026, by a vote of 75-26, with 17 members not voting. The Florida State Senate passed it the same day by a vote of 30-9, with one member not voting.
Now the final decision rests with voters on November 3, 2026. The same 60% supermajority requirement applies at the ballot box.
What It Means for South Florida Stakeholders
- 1Current Florida homeownersAn expanded homestead exemption is likely a net positive for annual carrying costs on a primary residence, particularly in high-value Broward and Palm Beach County markets. The savings grow as home value rises.
- 2Buyers relocating to FloridaTiming and residency matter. Establishing Florida residency before the end of 2026 could position a buyer for the expanded exemption sooner. New arrivals after that date would be subject to the smaller, phase-in exemption for five years.
- 3Investors and landlordsThe lower non-homestead assessment cap from 10% to 5% could slow the growth of assessed value on rental and commercial properties. However, local governments may respond by shifting revenue sources, so the total cost picture is not one-dimensional.
- 4Buyers in smaller residential municipalitiesCommunities with smaller commercial tax bases may face more pronounced budget adjustments. This is worth discussing as part of due diligence on any property in these areas.
The Bottom Line
Amendment 3 represents a genuine trade-off: meaningful tax relief for existing and long-time homeowners, balanced against real questions about how local governments sustain services, infrastructure, and credit quality over time. The details — residency phase-ins, the split between school and non-school exemptions, and the 5% non-homestead cap — will matter as much as the headline exemption amount.
With more than 30 years serving South Florida, we help clients cut through headlines and make well-timed, confident real estate decisions. We will continue tracking Amendment 3 as the November vote approaches. If you have questions about how the measure could affect your specific property, a purchase you are considering, or your overall real estate strategy, our team is here to help.
Frequently Asked Questions
What is Florida Amendment 3?
Amendment 3, titled the Homestead Tax Exemptions, Property Assessments, and Spending Restrictions Amendment, is a legislatively referred constitutional amendment on the November 3, 2026 Florida ballot. It would expand the homestead exemption for non-school property taxes, lower the annual assessment cap on non-homestead properties, impose new residency rules, and restrict how counties and municipalities may spend property tax revenue.
When do Floridians vote on Amendment 3?
The statewide vote is on November 3, 2026. To pass, the amendment requires a 60% supermajority of voters, as required by Article XI, Section 5 of the Florida Constitution.
How much would the homestead exemption increase?
For non-school property taxes, the homestead exemption would rise from the current $25,000 to $150,000 in 2027 and $250,000 in 2028. Starting in 2029, the amount would be indexed to inflation. The existing $25,000 exemption for school taxes would remain in place, creating two separate homestead exemptions.
Would new Florida residents get the full exemption?
No. Amendment 3 includes a five-year residency requirement. New residents would receive a smaller initial exemption until they have lived in Florida for five years, meaning recent arrivals would pay tax on more of their home's value than long-time residents.
What happens to non-homestead properties like rentals and commercial buildings?
The amendment would decrease the annual cap on assessed value increases for non-homestead properties from 10% to 5%, except for school district taxes. This applies to rental properties, commercial buildings, and other non-homestead real estate.
How would Amendment 3 affect local government budgets?
Legislative staff estimate the amendment would reduce local government revenue by approximately $4.6 billion in fiscal year 2027-28 and $8.4 billion in fiscal year 2028-29. The amendment also limits how counties and municipalities may spend property tax revenue on public safety, education, infrastructure, natural resource and flood control projects, local bonds, employee retirement benefits, and general government operations.
How did Amendment 3 get on the ballot?
Governor Ron DeSantis called a special legislative session for June 1-3, 2026. State Representative Toby Overdorf introduced the amendment as House Joint Resolution 1 (HJR 1). On June 2, 2026, the Florida House passed HJR 1 by a 75-26 vote, and the Florida Senate passed it 30-9, with one member not voting.
Questions About How Amendment 3 Affects You?
Every property and ownership timeline is different. Whether you are a current homeowner, relocating to Florida, or evaluating an investment purchase, we can walk you through the specifics for your situation.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Ballot language, fiscal projections, and implementation details are subject to change ahead of and following the November 3, 2026 vote. Please consult a qualified real estate attorney, CPA, or your county property appraiser for advice specific to your situation.