Florida Amendment Would Expand Homestead Break, Tighten Property Caps

Florida voters will decide on November 3 whether to approve Amendment 3, a proposed constitutional change to property taxes. The measure would raise the non-school homestead exemption and lower the assessment cap for non-homestead properties.

If approved, the exemption would increase from $50,000 to $150,000 in 2027, then to $250,000 in 2028. The proposal would also cut the annual assessment cap for non-homestead properties, including second homes and rentals, from 10% to 5%.

Current homesteaded homeowners would keep the existing Save Our Homes protections, including the 3% annual assessment cap and portability rules, according to Indian River County Property Appraiser Wesley Davis. Buyers who establish Florida residency by December 31, 2026, would qualify for the full exemption immediately upon approval. Those arriving later would start with a $50,000 non-school exemption and need to maintain their homestead for five years to qualify for the higher amount.

The increased exemption would not apply to school district levies. The Florida Legislature’s fiscal analysis projects statewide revenue reductions of about $4.6 billion in the first year and $8.4 billion in the second. Indian River County officials have estimated a local impact of about $50 million by 2028, according to WFLX.

The Legislature passed the measure on June 2. It requires approval from at least 60% of voters to take effect.