By Marcus Ellington | M•I•A MEDIA GROUP
Analysis

For Florida homeowners, Amendment 3 offers the prospect of meaningful property tax relief. But understanding the savings requires separating three numbers that are often confused: what a home is worth, its assessed value and the amount subject to taxation.

Approved by voters Nov. 3, the amendment increases the homestead exemption for qualifying properties beginning in 2027. It does not eliminate property taxes, and homeowners should not expect a reduction in their 2026 bills. The changes first appear on tax bills issued in November 2027.

How the homestead exemption changes

A homestead exemption reduces the portion of a qualifying primary residence’s assessed value that governments can tax. It is not a payment to homeowners or a dollar-for-dollar reduction in taxes.

Under Amendment 3, the exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. These are the total exemption amounts, rather than amounts added on top of the existing exemption. County, municipal and applicable special district taxes fall within the non-school category.

School taxes remain separate. The standard homestead exemption against school taxes stays at $25,000. A homeowner could therefore owe school taxes even when the larger exemption eliminates the taxable value used for non-school levies.

What that could mean in dollars

Consider a qualifying home with an assessed value of $300,000. Assuming no other exemptions and holding that assessment constant, the calculation would look like this:

|Tax calculation                                                    |2027    |2028    |
|—————————–————————————–|——-:|——-:|
|Assessed value                                                     |$300,000|$300,000|
|Non-school homestead exemption                                     |$150,000|$250,000|
|Value subject to non-school taxes                                  |$150,000|$50,000 |
|Value subject to school taxes, after the standard $25,000 exemption|$275,000|$275,000|

At a hypothetical combined non-school tax rate of 10 mills — $10 per $1,000 of taxable value — the non-school portion would be $1,500 in 2027 and $500 in 2028.

That illustrates a $1,000 reduction between those years, assuming the assessment and tax rates remain unchanged. It is an example, not a forecast for a particular property.

Actual savings depend on assessed value, other exemptions and local tax rates. Non-ad valorem assessments, such as certain service charges, also can remain on the bill. A larger exemption alone does not guarantee that the entire bill will fall by the same percentage.

Longtime homeowners keep Save Our Homes

The amendment leaves Save Our Homes intact. That protection generally limits annual increases in a qualifying homestead’s assessed value to 3% or the inflation rate, whichever is lower. Portability provisions and existing personal exemptions also remain unchanged.

This distinction matters in South Florida, where a longtime owner’s assessment may be substantially below the home’s market value.

For example, a house worth $500,000 could have a protected assessed value of $200,000. The exemption applies to that assessment. Under the $250,000 exemption scheduled for 2028, that hypothetical property could have no taxable value for non-school levies, while still owing school taxes and applicable assessments.

Homeowners whose property is already fully exempt should not expect an additional tax benefit simply because the general exemption grows.

Residency affects eligibility

The larger exemption comes with a distinction for newcomers. People who are not Florida residents by Dec. 31, 2026, initially receive the smaller exemption established for new residents when they qualify for homestead. The increased benefit begins in their fifth year of homestead exemption, subject to constitutional requirements and implementation.

Second homes and rental properties do not qualify for the larger homestead exemption. They receive a different change: the annual assessment growth cap for non-school taxes falls from 10% to 5%. That limits assessment increases; it does not cap the tax bill itself.

The broader homeowner trade-off

For households struggling to remain in their homes, lower taxes could provide valuable breathing room. But homeowners also rely on services supported by those taxes.

Before the election, Miami-Dade County estimated revenue reductions at unchanged tax rates of approximately $385.8 million beginning in October 2027, rising to $696.7 million in October 2028. Those projections describe potential budget pressure, rather than adopted service cuts.

The practical task for homeowners is to review their assessed value, confirm their homestead status with the county property appraiser and examine the 2027 proposed tax notice carefully.

Amendment 3 can reduce the value of a home subject to taxation. How much money stays in a homeowner’s pocket will depend on the assessment, the applicable exemptions and the tax rates local governments ultimately adopt.