Florida’s Amendment 3 Could Save Homeowners Thousands, but Raise Questions About Local Services

Florida voters will decide Nov. 3 whether to sharply reduce property taxes for homeowners, a change that could save some households thousands of dollars a year while cutting billions from local government revenue.

Amendment 3 would increase the homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028 for property taxes other than those collected for public schools.

The change would apply to qualifying primary residences, not vacation homes or investment properties. It requires at least 60% voter approval to become part of Florida's Constitution.

The official ballot proposal also includes changes affecting commercial properties, rental housing and how local governments spend property-tax revenue.

How much could homeowners save?

The savings would depend on a home's assessed value and local tax rates.

A homeowner whose property qualifies for the full $250,000 exemption could eventually pay no non-school property tax on that portion of the home's assessed value. School taxes would remain.

Average savings could approach $1,800 annually by 2028, although households in areas with higher property values or tax rates could save considerably more.

For homeowners who have watched insurance premiums, maintenance expenses and other housing costs rise, the proposed reduction could provide substantial relief.

The change would not affect 2026 property-tax bills. If approved, the first increase would begin in 2027, followed by the larger exemption in 2028.

New residents would face a waiting period

Not every homeowner would qualify for the expanded exemption immediately.

People who are not Florida residents by Dec. 31, 2026, would generally have to wait until their fifth year of qualifying homestead ownership to receive the increased benefit, subject to constitutional limitations.

They could still qualify for the existing homestead exemption in the meantime.

The proposal would also reduce the annual cap on assessment increases for non-homestead properties, including rentals and commercial buildings, from 10% to 5%.

That provision could benefit landlords and businesses by slowing increases in assessed property values, although it would not guarantee lower rents or commercial lease costs.

The question of local services

The other side of the proposal is what happens to the money local governments currently collect.

Florida's legislative revenue estimates project a reduction of approximately $4.95 billion in local non-school property-tax revenue in the 2027-28 fiscal year, increasing to about $8.78 billion the following year.

Property taxes help support police and fire departments, roads, parks, libraries and other local services.

Supporters argue that local governments have collected substantially more property-tax revenue as real estate values have increased and should operate with tighter budgets.

Opponents warn that large reductions could force counties and cities to raise fees, adjust tax rates or reduce services.

The amendment would also restrict the purposes for which counties and municipalities could spend property-tax revenue, while allowing certain additional expenditures through local approval.

The impact would differ considerably among Florida communities. Areas with expensive homes and a large share of qualifying homeowners could experience larger revenue reductions, while communities with more commercial property or rental housing would face a different balance.

The debate comes as Florida continues attracting new residents, many of whom are already struggling with housing costs.

For existing homeowners, Amendment 3 offers the possibility of a much smaller annual tax bill. For local governments, it raises the question of how to maintain services with less revenue.

And for renters, businesses and future residents, the financial consequences may depend on how cities and counties respond after the votes are counted.