Florida voters approved Amendment 3 on Tuesday with 62% of the vote, clearing the 60% supermajority a constitutional amendment needs to pass here.
It's the largest change to how Florida taxes property in a generation. It's also more complicated than the headline version, and the pieces that matter most in Central Florida are not the pieces getting the coverage.
Here's what actually changed, in plain language.
One thing up front: I'm a REALTOR®, not a CPA or a tax attorney. For what this means on your specific property, your county property appraiser and your accountant are the right calls. This is the orientation, not the advice.
The homestead exemption gets much larger on part of your bill
The non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028, indexed to inflation starting in 2029.
Two things to hold onto.
First, that word non-school. School district taxes keep the existing $25,000 exemption. Florida homesteads now carry two different exemptions working against two different parts of the same tax bill, and your school millage isn't touched by this.
Second, it's phased. 2027 isn't the full number. 2028 is.
Exactly how the new exemption stacks against the exemptions you already have is a detail worth confirming with your county property appraiser before you make any decision based on it. I'd rather point you there than hand you a number that turns out to be off.
New residents wait five years
This is the provision almost nobody is talking about, and in our market it may be the most consequential one.
If you establish Florida residency after December 31, 2026, you don't get the expanded exemption right away. You keep the existing exemption up to $50,000 until you've been a Florida resident for five years.
For a region that runs on relocation, and on snowbirds eventually becoming full-time residents, that's a real line in the calendar. Someone who closes and homesteads before the end of this year sits in a different position than someone who does it in February. If you're advising a parent, a client or yourself on timing, that date now belongs in the conversation.
The cap on rentals, second homes and commercial property drops by half
Non-homestead property rentals, vacation homes, second homes, commercial buildings, apartments has been subject to a 10% annual cap on how much its assessed value can rise. Starting January 1, 2027, that cap becomes 5%.
Same carve-out as above: it doesn't apply to school district taxes.
Central Florida has one of the largest vacation-rental and second-home markets in the country. If you hold non-homestead property here, this changes your long-run carrying cost in a way that a single year's tax bill won't show you. It compounds. That's worth modeling before you decide what to do with a property you've been on the fence about.
The part that decides what you actually save
Here's the honest caveat, and it isn't a small one.
An exemption lowers your taxable value. It does not set your rate. Millage rates are set locally, every year, by counties, cities, school boards and special districts.
Legislative staff estimated the amendment reduces local government revenue by roughly $4.6 billion in fiscal year 2027–28 and $8.4 billion in 2028–29. The amendment also restricts what counties and municipalities can spend property tax revenue on, and directs the Legislature to create a process for localities to raise exemptions further.
What none of that tells you is what your individual bill looks like in November 2027. That depends on your exemption, your assessed value, and the millage your taxing authorities set. Supporters and opponents disagreed sharply about how local budgets would respond, and we'll learn the answer over the next two budget cycles.
So: a real change, a clear direction, and no honest dollar figure anyone can quote you yet.
What I'd do with it
If you're selling — nothing about your listing changes today. But understand this well enough to speak to it, because buyers are going to ask you, and "I don't know" is an expensive answer at a showing.
If you're buying and relocating — that December 31 date deserves a conversation with your CPA now, not in March.
If you're holding a rental or a second home here — run the 5% cap through your numbers before you decide whether to keep it.
And if you want to think out loud about what this means for your situation, book a call. I'll tell you what I'm seeing on the ground, and I'll tell you plainly when you need a CPA instead of me.
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