Florida voters to decide on Amendment 3 homestead tax exemption hike

Florida voters will decide on Amendment 3, a proposed constitutional amendment that would alter property tax rules and homestead exemptions. The measure, which requires 60% voter approval, is set for a vote on Election Day.

Amendment 3 would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028. These amounts would then be adjusted for inflation. The measure would also reduce the annual cap on assessment increases for non-homestead properties from 10% to 5%.

The amendment would establish new rules for qualifying new residents for the increased homestead exemption. Residents would be eligible after five years of residency, with an interim exemption of up to $50,000. It would also set constitutional guidelines for how county and municipal governments may use property tax revenue.

If enacted, the measure would take effect on January 1, 2027. Individuals moving to Florida after December 31, 2026, would receive a smaller initial exemption. The Tax Foundation estimated that the measure would reduce local government property tax revenue by $4.9 billion in the first year and $8.7 billion in the second year.

Proponents, including Florida Governor Ron DeSantis, argue the measure would provide tax relief for residents. Critics, including the Florida Democratic Party, claim it would harm local services and shift costs to businesses and renters. The Tax Foundation described the amendment as a fundamental restructuring of local government finance.