Florida Homeowners Just Got a Major Property Tax Update — What Amendment 3 Means for You

Florida’s newly approved Homestead Exemption changes could have a significant impact on current homeowners, future buyers, and anyone considering a move to the Sunshine State.

On November 3, 2026, Florida voters approved Amendment 3, bringing major changes to the state’s property tax system beginning in 2027.

With approximately 62% of voters supporting the measure, the amendment surpassed the 60% approval requirement.

For homeowners throughout Winter Park, Orlando, Maitland, Windermere, and Central Florida, these changes could mean meaningful property tax savings. But there’s more to understand, particularly if you’re considering buying a home, relocating to Florida, or establishing residency before the end of 2026.

What’s Changing with the Homestead Exemption?

Amendment 3 significantly increases the amount of a qualifying primary residence’s assessed value that is exempt from non-school property taxes.

January 1, 2027: The non-school Homestead Exemption increases to $150,000.
January 1, 2028: The exemption increases further to $250,000.
2029 and beyond: The expanded exemption will be adjusted annually for positive inflation.

Important: School district property taxes are not eliminated. The existing $25,000 exemption applicable to school district taxes remains unchanged.

The larger exemption could substantially reduce property taxes for eligible homeowners, although actual savings will depend on assessed value, local tax rates, and individual eligibility.

Why December 31, 2026, Is an Important Date

One of the most significant provisions of Amendment 3 concerns Florida residency.

Homeowners and future buyers who are already permanent Florida residents by December 31, 2026, may qualify for the expanded exemption without the new five-year waiting period.

People who first establish permanent Florida residency on or after January 1, 2027, generally must wait until their fifth year of qualifying for a homestead exemption before receiving the increased benefit.

The important distinction is that you do not necessarily need to own a home by December 31, 2026. You need to have genuinely established permanent Florida residency.

That difference could be particularly important for people who are renting in Florida or planning to purchase a home in the future.

Already Living in Florida? Do You Need to Buy a Home Before December 31?

No. If you’re already a permanent Florida resident, you generally do not need to rush to purchase a home before the end of 2026 solely to qualify for the expanded exemption.

For example:

Scenario 1: You’re Currently Renting in Florida

You’ve lived in Orlando for several years and are renting an apartment. You plan to purchase your first home in Winter Park in 2028.

Because you established permanent Florida residency before December 31, 2026, you may qualify for the expanded exemption when your new home becomes eligible for homestead.

Scenario 2: You’re a Florida Homeowner Planning to Move

You’ve owned a home in Maitland for 10 years but plan to purchase a larger home in Windermere in 2027.

As an established Florida resident, you may qualify for the expanded exemption on your new primary residence once it meets the homestead requirements. You may also qualify to transfer some or all of your Save Our Homes assessment benefit through Florida’s portability provisions.

The timing of your purchase can affect which tax year the exemption begins, but the purchase itself does not create a new five-year residency waiting period for an established Florida resident.

What If You’re Planning to Move to Florida?

For buyers relocating from another state, the residency date could have a substantial impact on future property taxes.

Scenario 3: You Establish Florida Residency in December 2026

Imagine you’re relocating from Ohio to Central Florida.

You genuinely establish your permanent residence in a Florida rental property in December 2026, but you don’t purchase a home until the summer of 2027.

Because you established permanent Florida residency before December 31, 2026, you may be eligible for the expanded exemption when your purchased home qualifies for homestead, generally beginning with the following tax year.

Scenario 4: You Move to Florida in March 2027

Now imagine you continue living in Ohio until March 2027 and purchase a home in Orlando that year.

You may qualify for the existing Homestead Exemption once you meet Florida’s ownership and permanent-residence requirements.

However, because you established Florida residency after December 31, 2026, you generally must wait until your fifth year of homestead eligibility to receive the expanded exemption.

If your first qualifying homestead year is 2028, the expanded benefit could begin in 2032, assuming all applicable requirements are met.

The takeaway: When you genuinely establish Florida residency could affect your eligibility for valuable future property tax benefits.

What Actually Makes You a Permanent Florida Resident?

Florida residency involves more than simply owning property or having a Florida mailing address.

A permanent resident is someone who genuinely makes Florida their principal, permanent home.

When determining residency, Florida property appraisers may consider:

A Florida driver’s license or state identification card
Florida voter registration, when eligible
Florida vehicle registration
A recorded Declaration of Domicile
Florida employment or business connections
Where dependent children attend school
Evidence that permanent residency in another state has ended

No single document guarantees residency. Florida considers the complete circumstances and the individual’s intent to establish a permanent home.

You cannot establish genuine Florida residency merely by obtaining paperwork while continuing to maintain your permanent home elsewhere.

For people planning to move before December 31, 2026, it is important to understand the requirements and maintain appropriate documentation.

Are There Other Financial Benefits to Becoming a Florida Resident?

Beyond Amendment 3, Florida offers several financial advantages that may appeal to individuals and families considering relocation.

No Florida State Individual Income Tax

Florida does not impose a state individual income tax.

For people moving from states with significant income taxes, this could represent meaningful savings, depending on their financial circumstances and any continuing tax obligations to another state.

Retirement Income Advantages

Florida does not impose state individual income tax on Social Security benefits, pensions, or distributions from traditional retirement accounts.

For retirees planning to relocate, this may make Florida an attractive option for managing retirement expenses.

Estate and Inheritance Tax Considerations

Florida currently does not impose a separate state inheritance tax, and no Florida estate tax is currently due under the applicable federal tax-credit structure.

Federal estate taxes and potential obligations in other states may still apply.

Potential In-State College Tuition Benefits

Families relocating with children may eventually qualify for Florida resident tuition rates at eligible public colleges and universities.

Florida generally requires at least 12 months of qualifying legal residency before the first day of the academic term, along with supporting documentation. College tuition residency is determined separately from homestead eligibility.

Save Our Homes Property Tax Protection

Once a homeowner qualifies for a Florida Homestead Exemption, the Save Our Homes benefit generally limits annual increases in assessed value to the lesser of 3% or the change in the Consumer Price Index.

Eligible homeowners moving between Florida homesteads may also benefit from portability.

These protections can be particularly valuable for people planning to remain in their homes for many years.

An important distinction: These financial benefits are not all created by Amendment 3. Many are existing Florida tax and residency advantages, each with separate eligibility requirements.

What If You Purchase a Home That Already Has a Homestead Exemption?

This is an important consideration for buyers moving to Central Florida.

The seller’s Homestead Exemption does not automatically transfer to the buyer.

For example:

You’re relocating from New York and purchase a $500,000 home in Winter Park. The current owner has lived there for 20 years and benefits from a lower assessed value because of Florida’s Save Our Homes protections.

When you purchase that home:

The previous owner’s Homestead Exemption does not become yours.
The property’s assessed value generally resets following the change in ownership.
You must apply for your own Homestead Exemption when eligible.
Your future property tax bill could be significantly different from the seller’s current bill.
Your eligibility for Amendment 3’s expanded exemption depends on your residency history and homestead qualifications.

Never assume the property taxes advertised on a listing will be the same taxes you pay after purchasing the home.

A property’s purchase price, assessed value, exemptions, and local tax rates all matter when determining future housing expenses.

What About Second Homes, Rental Properties, and Commercial Real Estate?

Amendment 3 also changes the assessment rules for certain non-homestead properties.

Beginning in 2027, the annual cap on increases in assessed value for non-homestead properties will decrease from 10% to 5% for non-school property taxes.

This may benefit owners of:

Vacation homes and second residences
Rental and investment properties
Commercial real estate
Other qualifying non-homestead properties

Although these properties do not receive the expanded primary-residence exemption, the reduced assessment growth cap could provide additional protection against rapidly increasing assessed values.

The cap limits annual increases in assessed value under applicable rules, not necessarily increases in the final tax bill.

What Does This Mean for the Central Florida Real Estate Market?

For current homeowners, the expanded exemption could help reduce ongoing ownership expenses and make remaining in a home more financially manageable.

For first-time buyers, understanding eligibility and the timing of property tax benefits can help with long-term financial planning.

For people relocating to Florida, establishing genuine residency and understanding the new waiting-period requirements may be especially important.

For sellers, property taxes and long-term ownership costs are important considerations that prospective buyers may evaluate when comparing homes.

For retirees, the combination of Florida’s existing tax advantages and potentially lower homestead property taxes could influence future housing decisions.

Of course, property taxes are just one part of homeownership. Insurance, maintenance, HOA fees, mortgage costs, and market conditions should all be considered before making a real estate decision.

Thinking About Buying, Selling, or Relocating to Central Florida?

Whether you’re already a Florida homeowner, considering your first home, planning to downsize, or relocating from another state, understanding these changes is an important part of making informed real estate decisions.

A home is more than its purchase price. It’s also about long-term affordability, lifestyle, and finding the right fit for your future.

If you’re wondering how Amendment 3 could affect your next move, I’d be happy to help you navigate the Central Florida real estate market and connect you with the right resources to understand your options.

Cathy Williams
Broker Associate | Coldwell Banker Realty

Phone: 407-489-3921
Email: Catherine.Williams@cbrealty.com
Website: https://askcathywilliamsrealtor.com

Your Central Florida real estate resource.

Important Information & Election Status

As of November 4, 2026, the November 3 election results are unofficial pending certification. Reported results show Amendment 3 received approximately 62% approval, exceeding the 60% threshold.

Amendment 3 is scheduled to take effect January 1, 2027. Actual property tax savings depend on assessed value, applicable tax rates, eligibility, and implementation. Savings are not guaranteed.

The examples in this article are hypothetical and are intended to explain general residency and homestead principles. Individual eligibility, tax-year timing, portability, and implementation requirements may vary.

This article is for general informational purposes only and is not legal, tax, financial, or residency advice. Consult the appropriate county property appraiser, tax professional, or attorney regarding your specific situation.

Sources & Additional Information

Florida Department of State — Official Amendment 3 Language
https://constitutionalinitiatives.dos.fl.gov/Home/InitDetail?account=10&seqnum=110

Florida Division of Elections — November 3, 2026 Election Results
https://floridaelectionwatch.gov/CompareStateToCounty/900003

Santa Rosa County Property Appraiser — Amendment 3 and Residency FAQs
https://srcpa.gov/homesteadamendment

Florida Statute 196.015 — Permanent Residency Determination
https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0100-0199/0196/Sections/0196.015.html

Florida Department of Revenue — Homestead Exemptions and Save Our Homes
https://floridarevenue.com/property/Pages/Taxpayers_Exemptions.aspx

Florida Department of Revenue — New Resident Tax Information
https://floridarevenue.com/Forms_library/current/brochure/gt800025.pdf

Florida Department of Education — Residency for Tuition Purposes
https://www.fldoe.org/schools/higher-ed/fl-college-system/student-services/residency-for-tuition-purposes.stml

WUSF / News Service of Florida — November 3, 2026 Election Coverage
https://www.wusf.org/politics-issues/2026-11-03/florida-2026-election-results-voters-approve-amendment-3-property-tax-reduction

Published November 4, 2026. Information reflects available election results and amendment provisions as of publication.