Florida Amendment 3: What the $150,000 Homestead Exemption Could Save Homeowners

Florida Amendment 3 would raise the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, then adjust it with inflation. It needs 60 percent of the vote in November 2026. School taxes are not covered, and new residents would wait five years for the larger exemption.

The Florida Legislature placed the measure on the November ballot, according to Orange County's Amendment 3 page. If it passes, it takes effect January 1, 2027. For a homeowner, the headline sounds simple: a bigger exemption means a smaller bill. The details decide how much smaller, and who pays for the gap.

This explainer is for Florida homeowners, landlords and renters trying to decide what the amendment means for their own budgets. It lays out the rules, runs the numbers on a sample bill and covers the trade-offs that county governments have raised. Kenponet covers owning, renting and buying a home in plain terms. It does not recommend a vote, and it uses public documents and county estimates, so check the official ballot text before you decide.

What Does Florida Amendment 3 Actually Change?

Five changes sit inside the amendment. The first is the larger exemption, which applies to all property taxes except those levied by school districts. The second is automatic inflation growth, so both amounts rise each year after 2028. The third is a lower assessment cap on second homes, rentals and commercial property, from 10 percent a year to 5 percent.

The fourth is a residency rule. According to the county's summary, new residents would need five years of Florida residency before qualifying for the expanded exemption. The fifth is a limit on local government. The default maximum tax rate would be the rollback rate, with higher rates needing a two-thirds vote, and above 110 percent of that rate needing a unanimous vote. County and city property taxes would also be limited to seven categories, including public safety, infrastructure and debt payments.

The amendment does not cut your assessed value. It also leaves school taxes alone, and homeowners would still receive a property tax bill. The county page notes that the measure directs the Legislature to set a schedule for eliminating non-school homestead property taxes.

How Much Could Florida Amendment 3 Save a Homeowner?

Your savings equal the added exemption times your local non-school tax rate. Start with the current exemption, which the Florida Department of Revenue explains on its property tax exemptions page. Then subtract it from your assessed value, and multiply by the millage rate on your bill. One mill is one dollar per $1,000 of taxable value.

Here is an illustration with made-up round numbers. Assume a homestead assessed at $400,000, a non-school rate of 12 mills and a current exemption of about $50,000. Today the taxable amount is $350,000, and the non-school bill is $4,200.

Treat the table as a teaching example, not a forecast. Your millage rate, your assessed value and your county decide the real figure. Pull last year's bill and swap in your numbers. Florida TaxWatch keeps a property tax resource center with background on how the pieces fit together.

Note one more catch. A home assessed under the new exemption amount would owe nothing in non-school taxes, but it would still owe school taxes and any non-ad valorem fees, such as trash or stormwater charges.

What Will Counties and Cities Lose, and Why Does It Matter to You?

Local governments rely heavily on property taxes, and the amendment includes no recurring state funding to offset the loss. Orange County estimates its own revenue would fall by about $165 million in 2027 and $275 million in 2028. The county says that comes from countywide millage, fire rescue and the sheriff's office, among others.

The county also says it has no single replacement revenue source and would likely turn to spending cuts, fees and other options. It notes that no decisions have been made. That is a statement of risk, not a prediction.

The Florida Senate's bill analysis and fiscal impact statement lays out the legislative version of these numbers, and it is worth reading if you want the state-level picture. Other sources report statewide estimates in the billions, but they vary, so read the primary documents rather than a single summary.

For a homeowner, the practical question is a trade. A lower property tax bill may come with higher fees, slower projects or changed service levels. Whether that trade is good depends on how much you use local services and how much your bill would drop.

What Is the Rollback Rate, and Why Does It Matter Here?

The rollback rate is the tax rate that would raise the same dollar amount as last year from this year's tax base. When values rise, a local government can keep its bill steady by lowering the rate to the rollback level. Going above it means collecting more than last year from the same property.

Amendment 3 would make the rollback rate the default ceiling. Rates up to 110 percent of it would need a two-thirds vote of the governing body, and anything higher would need a unanimous vote. In plain terms, it becomes harder for a county or city to raise a property tax bill without a broad majority behind the decision.

For homeowners, this means two protections stack up: a bigger exemption and a harder path to a rate increase. For local officials, it means less room to respond if costs climb, and that is the core of the budget concern the counties describe.

How Does the Five-Year Residency Rule Work?

New residents would not get the larger exemption right away. The county summary says they would need five years of Florida residency first. A family moving to Florida in 2027 would keep the existing exemption in the meantime, then qualify for the expanded amount after the waiting period.

That rule changes the math for anyone planning a move. If you are buying a Florida home this year, price your first five years using today's exemption, and treat any larger one as a later bonus. It also affects retirees relocating from other states, who often assume the headline number applies on day one.

What Does Amendment 3 Mean for Landlords and Renters?

Landlords with rental property are in a different category than homesteaders. Rentals, second homes and vacation homes do not get the larger homestead exemption. Their benefit is the lower assessment cap, which would drop from 10 percent to 5 percent a year on non-school taxes, so their assessed value could grow more slowly.

Nothing in the amendment requires a landlord to pass savings to tenants. A county page notes the flip side, too: renters and businesses could be affected if commercial property owners pass higher costs on through rents. Neither effect is guaranteed.

If you rent in Florida, the useful move is to watch your lease renewal, not the ballot alone. Ask at renewal whether property taxes figure into the rent increase, and keep any written reply. Our guide to negotiating rent and concessions covers how to raise that conversation.

How Should Florida Homeowners Prepare Before the Vote?

Gather three documents now: your most recent property tax bill, your homestead exemption confirmation and your current assessed value. With those, you can run the calculation above in five minutes and see where you land.

Check also that your homestead exemption is active. A missing exemption would block any benefit. Then compare your bill with other housing costs, including the rising insurance premiums we cover in why homeowners insurance keeps going up, since a lower tax bill can be offset by a higher premium.

If you think your assessment is wrong, a separate process exists no matter how the vote goes. Our walkthrough on how to check and appeal a property tax assessment explains the steps. Flood coverage matters as well, and the NFIP flood insurance deadline is one more date Florida owners should track.

What Questions Should You Ask Before Voting on Amendment 3?

Ask five plain questions. How much would my own bill change? Which local services does my county say are at risk? Would I rely on fees if taxes fall? Do I plan to stay five years or more? Does the amendment affect my rental or second home differently?

Your county property appraiser and your county commission both publish material on the measure. Read at least one document from each, because they often emphasize different effects. The official ballot summary from the Florida Division of Elections is the final authority on what voters are approving. At Kenponet, we suggest saving your numbers and your questions before you walk into the voting booth.

Conclusion

Amendment 3 would make a big dent in non-school property taxes for homesteaded households, and it would shift pressure onto local budgets. The savings math is simple, the trade-offs are not, and the 60 percent threshold makes the outcome uncertain.

Your next step is to pull last year's tax bill and run the numbers using your own millage rate. Then read your county's own summary before you vote.