Property taxes have become an increasingly important part of the affordability conversation in Florida. This November, Florida voters will have an opportunity to weigh in on a major proposed change to how certain properties are taxed.
Amendment 3, appearing on Florida’s November 3, 2026 General Election ballot, proposes significant changes to the state’s homestead exemption as well as the way assessments can increase on certain non-homestead properties.
So, what exactly is being proposed—and what could it mean for Florida homeowners and future buyers?
A Bigger Homestead Exemption
One of the biggest changes proposed by Amendment 3 is an increase in Florida’s homestead exemption for qualifying primary residences.
If approved, the increased exemption would apply to non-school property taxes and would be phased in:
2027: The exemption would increase to $150,000.
2028: The exemption would increase to $250,000.
After that, the exemption would be adjusted for inflation.
In simple terms, a larger portion of a qualifying homeowner’s assessed property value could be excluded when calculating certain property taxes.
It’s important to understand that school district property taxes would not receive this increased exemption, so approval of Amendment 3 would not mean homeowners simply stop paying property taxes altogether.
What About Investment Properties and Second Homes?
Amendment 3 isn't limited to homesteaded properties.
Currently, many non-homestead properties—including investment properties, second homes and certain commercial properties—are generally protected by a 10% annual cap on increases in assessed value.
Amendment 3 would reduce that cap from 10% to 5% per year.
That could be particularly relevant for Florida real estate investors and owners of properties that don't qualify for the homestead exemption.
There's an Important Provision for New Florida Residents
The proposal also contains a provision affecting people who become Florida residents after the amendment takes effect.
Under the amendment, people who were not Florida residents as of December 31, 2026 would still be able to receive the existing homestead exemption after qualifying, but generally would need to reach their fifth year of homestead exemption before receiving the increased exemption, subject to constitutional requirements.
For people considering relocating to Florida, this is an important detail to understand when estimating future housing expenses.
Why Does This Matter When Buying a Home?
Property taxes are part of the true cost of homeownership.
When deciding how much home you can comfortably afford, it isn't enough to look only at the purchase price or mortgage payment. Your overall housing expense can also include:
• Property taxes
• Homeowners insurance
• Flood insurance, when applicable
• HOA or CDD fees
• Maintenance and repairs
Changes to Florida's property-tax system could therefore affect the long-term cost of owning a home.
There's also another important consideration for buyers: never assume the current owner's property-tax bill will become your property-tax bill.
A property's assessed value can change after a sale, and exemptions belonging to the previous homeowner don't automatically become yours. That's why it's important to estimate your taxes based on your own circumstances rather than simply looking at what the seller currently pays.
What Could This Mean for Sellers?
Affordability doesn't stop at the purchase price.
Buyers increasingly evaluate homes based on the total monthly cost of ownership, and property taxes are part of that equation.
If Amendment 3 passes, the potential tax treatment of a primary residence could become another consideration for buyers comparing the costs of owning versus renting or determining how much home they can comfortably afford.
For sellers, understanding these changes can also help when discussing affordability with prospective buyers.
It's a Proposal—Not Current Law
This distinction is important.
Amendment 3 has not taken effect.
Florida voters will decide whether to approve the constitutional amendment during the November 3, 2026 General Election. If approved, the amendment is scheduled to take effect January 1, 2027, with the larger homestead exemption phased in according to the amendment.
As with any proposed constitutional amendment, voters should review the official ballot language and understand both the potential benefits and the broader implications before voting.
The Bottom Line
Amendment 3 could represent a significant change to Florida's property-tax system, particularly for homeowners who qualify for the homestead exemption and owners of non-homestead real estate.
But real estate affordability involves much more than one tax exemption.
If you're thinking about buying, selling, investing, or relocating to the Tampa Bay area, understanding how property taxes, insurance, financing, exemptions and other ownership costs fit together can help you make a much more informed decision.
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