Big changes are coming to Florida property taxes, and whether you're thinking about buying, selling, or simply staying put, you'll want to know about them!
On November 3, 2026, Florida voters approved Amendment 3, a major change to the state's property tax system that will begin taking effect January 1, 2027.
The amendment significantly increases the homestead exemption for qualifying Florida homeowners, potentially reducing their annual property tax bills.
But here's where things get interesting: The new rules could also influence who decides to buy a home, when they buy, and whether current homeowners decide it's time to make a move.
At the Golden Palms Group, we're breaking down what these changes mean for buyers and sellers throughout Sarasota, Venice, North Port, Port Charlotte, Englewood, and the surrounding Southwest Florida communities.
What Is Florida Amendment 3?
In simple terms, Amendment 3 increases the amount of your primary home's assessed value that can be exempt from certain property taxes.
Here's how the expanded homestead exemption works for qualifying Florida residents:
Tax YearHomestead Exemption for Non-School Taxes2026Approximately $50,0002027$150,0002028$250,0002029 and beyond$250,000, adjusted for inflation
That's a significant change!
However, there are a few important things to understand:
The expanded exemption applies to non-school property taxes, not school district property taxes.
Your home must qualify as your primary residence.
The exemption reduces taxable assessed value, not your home's market value or purchase price.
Special assessments and other charges may still apply.
Not everyone qualifies for the expanded exemption immediately.
And that last point is especially important for anyone considering buying a Florida home.
What Does Amendment 3 Mean for Florida Home Buyers?
1. Already Renting in Florida? This Could Be Great News!
Here's something that might surprise you.
You don't necessarily have to own a home today to benefit from Florida's expanded homestead exemption.
If you've already established permanent Florida residency by December 31, 2026, you may qualify for the expanded exemption when you purchase a home and establish a qualifying homestead.
For example, let's say you've been renting in North Port since 2024.
You decide to purchase your first home in 2027.
Because you were already a permanent Florida resident before the new rules took effect, you may be eligible for the expanded exemption when your new home first qualifies for homestead, generally in the following tax year.
That means you could potentially benefit from the $250,000 exemption for non-school property taxes beginning in 2028.
The key distinction is when you established Florida residency, not how many years you've owned a home.
For renters who have been considering homeownership, this is another financial factor worth exploring.
Of course, property taxes are only one piece of the affordability puzzle. Mortgage rates, insurance costs, HOA fees, maintenance, and your overall monthly payment still matter.
2. Moving to Florida From Another State? Here's What Changes.
Thinking about relocating to sunny Southwest Florida?
Florida continues to offer attractive benefits, including no state individual income tax, beautiful beaches, and a lifestyle that's hard to beat.
However, Amendment 3 introduces an important distinction for new residents.
If you were not a permanent Florida resident by December 31, 2026, you'll generally start with the existing homestead exemption when you qualify.
Under the amendment, the expanded exemption becomes available beginning with your fifth qualifying homestead year.
For example, someone who relocates to Florida and establishes a qualifying homestead in 2027 would generally become eligible for the expanded exemption in 2031, assuming continuous eligibility.
This doesn't mean relocating buyers can't benefit from Florida's homestead protections. It simply means the additional exemption may take longer to become available.
Our advice? Before purchasing, make sure you understand the property's estimated taxes based on your own eligibility, rather than relying on what the current owner pays.
3. What About Existing Florida Homeowners Who Want to Move?
This is another interesting opportunity.
Let's say you currently own a home in Sarasota but are considering downsizing to a smaller home in Venice.
Or perhaps you're living in Port Charlotte and want to purchase something closer to family in North Port.
If you're an established Florida resident and qualify for homestead on your new primary residence, the expanded exemption could continue to benefit you.
You may also qualify to transfer some or all of your existing Save Our Homes assessment benefit through Florida's portability rules, subject to applicable limits and deadlines.
That combination could make moving more financially appealing for some homeowners.
What Does Amendment 3 Mean for Florida Home Sellers?
Now for the question we're hearing from homeowners:
"Does this mean more people are going to start buying homes in Florida?"
The answer is that it could encourage some buyers, but we wouldn't expect everyone to rush into the market overnight.
Here's why.
1. Existing Florida Renters May Have Another Reason to Buy
Renters who already qualify as Florida residents could be among the groups most interested in the expanded homestead exemption.
For someone comparing the cost of renting versus owning, the possibility of lower property taxes could make purchasing more attractive.
For sellers in North Port, Port Charlotte, Venice, and surrounding areas, this could be particularly relevant to homes that appeal to first-time buyers.
However, whether it actually increases buyer activity will depend on affordability, available inventory, financing conditions, and the overall market.
2. More Existing Homeowners May Consider Downsizing
Some homeowners have stayed in their properties for years because moving would mean giving up a favorable property tax situation.
With the expanded homestead exemption and existing portability benefits, some may decide it's worth revisiting their options.
That could mean more homeowners exploring smaller homes, retirement properties, or homes in different Southwest Florida communities.
For sellers, this could create opportunities to connect with buyers who already own property in Florida.
3. Relocation Buyers May Think More About Timing
Florida has long attracted buyers relocating from other states.
Amendment 3 adds another financial consideration to that decision.
While new residents may have to wait longer for the expanded exemption, the potential future savings could still factor into their long-term plans.
We don't expect the amendment alone to determine whether someone relocates, but it may become part of the conversation.
4. Will Florida Home Prices Increase Because of Amendment 3?
Not necessarily.
Although lower property taxes can improve the cost of ownership for qualifying buyers, home prices depend on many factors.
Mortgage rates, housing inventory, insurance premiums, employment, local demand, and overall economic conditions will continue to influence Florida's housing market.
The amendment does not guarantee higher home prices or faster sales.
For sellers, competitive pricing, professional marketing, and understanding your local market remain essential.
What About Florida Investment Properties and Second Homes?
Amendment 3 also changes the rules for certain properties that don't qualify for a homestead exemption.
The annual cap on increases in assessed value for non-homestead properties drops from 10% to 5%.
This can affect qualifying rental properties, second homes, and other non-homestead real estate.
However, the lower cap does not guarantee that an investor's total property tax bill can only increase by 5%.
Tax rates, school taxes, reassessments after ownership changes, and other factors can affect the final bill.
For anyone considering purchasing a Southwest Florida investment property, it's important to evaluate the complete financial picture.
Will You Still Pay Property Taxes in Florida?
Yes, in many cases.
Even if your home's assessed value is below the expanded homestead exemption amount, school district property taxes may still apply.
Other assessments and charges may also remain.
For example, if a qualifying home has an assessed value of $300,000 in 2028, the $250,000 exemption could leave $50,000 subject to non-school property taxes, before considering any additional applicable exemptions.
School taxes would be calculated separately.
Your actual savings will depend on the property's assessed value, local tax rates, eligibility, and other factors.
When Do the New Florida Property Tax Rules Take Effect?
Amendment 3 takes effect January 1, 2027.
The expanded homestead exemption is scheduled to increase in stages, reaching $250,000 in 2028.
If you're purchasing a home, remember that Florida generally determines homestead eligibility based on ownership and permanent residency as of January 1 of the applicable tax year.
The standard homestead application deadline is March 1, subject to applicable late-filing rules.
For example, if you purchase a home during 2027, you would generally first qualify for homestead in 2028, provided you meet the January 1 requirements.
We recommend checking with your county property appraiser to confirm eligibility, filing requirements, and estimated taxes.
What Does This Mean for the Southwest Florida Real Estate Market?
We think Amendment 3 is worth paying attention to, particularly because it creates different incentives for different types of buyers.
Existing Florida renters may see another financial reason to explore homeownership.
Current homeowners may revisit plans to downsize, relocate within Florida, or purchase a different primary residence.
Out-of-state buyers will need to consider how the new residency requirements affect their future property taxes.
And sellers may find that property tax savings become a more important part of buyers' conversations.
At the same time, lower property tax revenue could affect local government budgets, services, fees, or future tax rates. The full long-term impact remains to be seen.
Our biggest takeaway? Amendment 3 could influence real estate decisions, but it doesn't replace the fundamentals of buying or selling a home.
Understanding the numbers and having a plan still matters.
Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. Property tax eligibility, exemptions, and savings depend on individual circumstances and applicable law. Consult your county property appraiser or a qualified tax professional for guidance specific to your situation.
