Florida Amendment 3 Explained: Homestead Exemption Facts for 2026

Status as of October 7, 2026: proposed, not enacted. This guide covers the 2026 property-tax proposal. Amendment numbers repeat across election years; always check the year and official ballot wording.

Can you explain your own homestead exemption?

I have been originating mortgages since 2001. One thing I still see: buyers know their mortgage payment but cannot explain how their property taxes were estimated. That matters when a proposal could change the numbers.

This article has one job: explain the facts, the dates, the examples, and the arguments on both sides so you can decide for yourself. I am not telling you how to vote.

Download the Florida Amendment 3 fact sheet, or start with the official Florida ballot record.

How does Florida homestead work in 2026?

Amendment 3 has not taken effect. Here is the current system, before considering the proposed changes.

You generally must own the property and make it your permanent residence as of January 1 of the tax year. Apply with your county property appraiser by March 1. Homestead is a tax benefit you must qualify for, not simply a form signed at closing.

For 2026, the homestead exemption is worth up to $51,411 of assessed value. The first $25,000 applies to all property-tax levies, including school taxes. An additional exemption of up to $26,411 applies to non-school levies on the qualifying value above $50,000. That second amount reflects annual inflation adjustments. Lower-value properties may not receive the full amount.

Save Our Homes is separate from the exemption. For qualifying homesteads, annual assessed-value increases are generally limited to 3% or inflation, whichever is lower. Ownership changes and improvements have separate rules. Eligible owners moving within Florida can apply for portability of up to $500,000 of their assessment difference, subject to timing and other requirements.

Rentals, second homes, and commercial property don’t get the exemption. They do get a cap: assessed value for non-school taxes can’t rise more than 10% a year.

That’s the whole system today. Four moving parts. Now here’s what’s on the ballot.

What would Florida Amendment 3 change?

Amendment 3 came out of a special legislative session in June 2026 as HJR 1F. It’s a constitutional amendment, which means it needs 60% of the vote to pass. Not a simple majority. Sixty.

Here’s what it does, as written.

The total non-school exemption gets bigger. The $25,000 school exemption stays. For eligible owners, the non-school exemption becomes up to $150,000 on January 1, 2027, then up to $250,000 on January 1, 2028. Inflation adjustments to that larger amount start in 2029. These amounts replace the existing non-school exemption structure; they are not added on top of today’s $51,411.

School taxes are not included in the increase. A $350,000 assessed homestead would still have $325,000 in school-taxable value before any other applicable exemptions.

Further local increases would require additional action. The proposal requires a legislative procedure for counties and cities to expand the exemption for their own levies, potentially up to the remaining assessed value. Special districts could also increase their exemption with referendum approval. It does not automatically remove all non-school taxes statewide.

The non-homestead cap drops. Rentals, second homes, and commercial property would see their annual non-school assessed value increase capped at 5% instead of 10%.

Local spending rules would change. The permitted purposes include public safety, schools, infrastructure, natural resources, bond debt, employee retirement, and administration. Other spending may be approved by the specified local officials unless general law prohibits it. This is broader than a simple list of emergency services and does not promise a particular police, fire, or EMS funding level.

What doesn’t change. Save Our Homes. Portability. The senior, veteran, widow, and disability exemptions. All of it stays.

Read the enrolled amendment text alongside the examples. The proposal changes exemptions, assessment limits, residency treatment, and local spending rules.

Why does December 31, 2026 matter for Florida residency?

There’s a date in this amendment that almost nobody is talking about, and for anyone moving to Florida it’s the most important thing in here.

People who have established permanent Florida residence by December 31, 2026 would follow the larger exemption schedule when they otherwise qualify for homestead. Residency and homestead eligibility are related, but they are not the same test.

You do not necessarily need to own a home by that residency cutoff. A qualifying Florida renter who buys later can fall within the existing-resident group. But buying in spring 2027 generally means the first eligible homestead tax year is 2028, assuming ownership and permanent residence on January 1, 2028. Do not treat the residency cutoff as a waiver of the annual homestead requirements.

People establishing permanent Florida residence on or after January 1, 2027 would begin with a $50,000 non-school exemption when they qualify for homestead, adjusted for inflation starting in 2028. The larger exemption would first apply in the fifth year of exemption. Four years of renting does not count as four years of homestead exemption. Administration requires implementing procedures, and the ballot summary makes the residency distinction subject to the U.S. Constitution.

Same assessed value. Different exemption timing. The difference is tied to permanent residency and years of homestead eligibility, not simply the closing date. Starting in 2030, the proposal would also permit a county or city, by a two-thirds governing-body vote, to reduce the waiting requirement for a critical local need.

If you’re a realtor working relocation buyers, or a builder with homes closing around the holidays, this is the rule to know cold. I’m not telling anyone what to do about it. I’m telling you what it says so you can have the conversation.

How would Amendment 3 affect rentals and second homes?

If you own a rental or a beach place, here’s the whole investor side of Amendment 3. It’s short.

The part that doesn’t apply to you: the exemption. The $150,000 and $250,000 are homestead only. Primary residence. A rental gets zero of it. A second home gets zero of it.

The part that does: the cap. Today, the non-school assessed value on non-homestead property can’t rise more than 10% a year. Amendment 3 cuts that to 5%.

For an eligible rental with a prior non-school assessed value of $400,000, a 10% cap permits up to $440,000 next year; a 5% cap permits up to $420,000. This assumes sufficient market value and no ownership change, qualifying improvement, or other reassessment exception.

The cap limits annual growth; it does not itself cut assessed value by 5%. Values can still fall when market conditions justify it. The non-homestead cap does not apply to school levies. Separate classifications or exemptions may affect individual properties.

For investors, the practical question is how the tax estimate fits the property’s total carrying cost. Review the investor mortgage guide before relying on projected cash flow.

Would Amendment 3 lower your mortgage payment?

This is the question I get most, and I’d love to give you a yes or a no. The real answer is that nobody knows yet, and here’s why.

Start with three pieces: taxable value, the millage rates set by taxing authorities, and non-ad valorem assessments that are not based on property value. CDD, stormwater, and other special assessments can remain even when taxable value falls.

The expanded exemption changes taxable value. It does not itself set your local millage rate or reduce non-ad valorem assessments.

Take a $350,000 homesteaded home with no Save Our Homes savings built up. Today, about $298,589 of it is taxable for non-school taxes. In 2027, if the amendment passes, $200,000. In 2028, $100,000. That’s a real change in value.

Ad valorem tax is taxable value multiplied by the applicable rate. One mill is $1 per $1,000 of taxable value. Taxing authorities set rates through their annual budget processes, subject to law. A lower taxable value does not establish the final bill.

If approved, the first affected tax year would be 2027, with changes reflected in 2027 TRIM notices and tax bills. Your mortgage servicer’s escrow analysis determines when the monthly collection changes. Servicers use known or estimated charges; the rules do not create a universal requirement to wait until after the November bill. Ask your servicer what documentation it needs and when it will review your account. Insurance changes or an escrow shortage can offset tax savings.

The right question is not just “Will my taxes drop?” It is “What will my total housing payment be, and when will my servicer reflect it?” See how taxes, insurance, and CDDs affect your payment and the CFPB escrow rules.

What do supporters and opponents say?

Both sides are discussing the same proposed amendment. Their conclusions about its effects differ.

Supporters’ argument: a larger exemption would give eligible homeowners relief from non-school property taxes and reduce the taxable value of their homes. Florida Realtors is a major supporter. Florida Phoenix reported that the supporting campaign had raised $18 million through September 25, all from the Florida Association of Realtors.

Opponents’ argument: reducing the property-tax base could pressure local services and shift costs through rates, fees, or other funding sources. Opposition includes organizations representing sheriffs, firefighters, and police. Florida Phoenix reported projected annual local-government revenue impacts reaching up to $12 billion beginning in 2031. Projections are not the same as a property-specific bill or a decided service cut.

Ballot wording changed. An August 2026 court ruling required revisions to the original title and summary. The current wording is available in the official ballot record. Review the current language, not a campaign headline.

The approval threshold is 60% of votes cast on the amendment. Polls and campaign spending do not determine the result.

What are the key dates?

Three examples using assessed value, not sale price

These examples show taxable or assessed value, not tax savings. They hold assessed values constant for comparison, assume full eligibility and no other exemptions, and do not forecast millage rates. Real assessments and eligibility can change.

Example 1: a $350,000 qualifying homestead

Example 2: a $600,000 homestead and two residency paths

Both columns assume the owner qualifies for the stated tax year. A buyer who closes after January 1 generally starts homestead the following year. The later-resident column shows the initial exemption period.

Example 3: a rental with $400,000 assessed value

*Assumes the cap applies, sufficient just/market value, and no reassessment exception. A purchase or qualifying improvement may change the result.

What Amendment 3 would not do

• It would not eliminate all property taxes. School taxes remain, and non-school taxes can apply above the exemption.
• It would not set your local tax rate or remove non-ad valorem assessments.
• It would not replace Save Our Homes, portability, or existing personal exemptions.
• It would not give rentals and second homes the larger homestead exemption.
• It would not promise a specific funding level for police, fire, or EMS.
• It would not immediately give every new Florida resident the larger exemption.

What should Northeast Florida buyers and Realtors check?

The proposal is statewide, including Jacksonville and Duval, St. Johns, Clay, Nassau, and Flagler counties. The actual payment remains property-specific. A home in Nocatee with CDD assessments and a resale home in Jacksonville may have very different costs even at the same price.

• Confirm the property’s assessed value, exemptions, and taxable value with the county property appraiser.
• Document the permanent-residency date and confirm the first eligible homestead tax year.
• Estimate the buyer’s taxes rather than copying the seller’s bill.
• Separate school taxes, non-school taxes, insurance, HOA dues, and CDD assessments.
• Use confirmed costs for mortgage planning and discuss proposed changes as scenarios.

Find local property-appraiser resources in the Jacksonville and Duval County guide, St. Johns County guide, Clay County guide, Nassau County guide, and Flagler County guide. Buying from a builder? Start with the new-construction guide.

Download the Florida Amendment 3 fact sheet

Get the free fact sheet. It includes the exemption schedule, residency rule, dates, three examples, and the central arguments on both sides. No email required.

If you have a question about how the proposal could affect a purchase, refinance, or escrow account, contact me. I would rather you ask than guess.

Jason Kindler is President of First Coast Mortgage Funding in Jacksonville, Florida. He has originated mortgages since 2001 and helps borrowers throughout Florida understand financing, new construction, and the full cost of homeownership. NMLS #157168. Company NMLS #1953441.

This article explains current law and a proposed amendment as of October 7, 2026. It does not recommend how to vote. Confirm property-specific eligibility and tax treatment with your county property appraiser and qualified advisers. Future implementation and local rates may change the outcome.