Here’s the cutoff for new homeowners under Florida’s Amendment 3
Florida voters approveD the state’s latest property tax proposal — Amendment 3 — on Tuesday night, though it may raise a new question for some homeowners.
Will it apply to me?
For existing homeowners in the state, the answer is largely yes. The amendment will apply to homeowners who are permanent residents of Florida before the amendment takes effect on Jan. 1, 2027.
For newcomers, though, the timeline is a bit different.
WHAT DOES AMENDMENT 3 DO?
Current homestead exemption rules in the state operate as follows, with two different brackets of assessed value being tax exempt:
| Assessed Value | Application of Homestead Exemption (Current) |
|---|---|
| The first $25,000 | Exempt from all property tax |
| $25,000.01 –> $50,000 | Fully taxable |
| $50,000.01 –> $75,000 | Exempt from non-school taxes |
| Remaining value | Taxable, though other exemptions may apply |
But under Amendment 3, the exemptions would apply solely to non-school taxes, though the exempted amount would raise dramatically:
- 2027 — First $150,000 of assessed value
- 2028 — First $250,000 of assessed value
- 2029 onward — First $250,000 of assessed value, indexed to inflation
It’s also important to note that under state law, rental units or other properties that aren’t the homeowner’s primary home do not receive the homestead exemption.
[RELATED: Here’s what to know about Amendment 3]
WHAT ABOUT NEWCOMERS?
For those moving to Florida after the plan takes effect, Amendment 3 instead provides a lesser homestead exemption that comes out as follows:
| Assessed Value | Application of Homestead Exemption (New) |
|---|---|
| The first $25,000 | Exempt from school taxes |
| $25,000.01 –> $50,000 | Exempt from non-school taxes |
| Remaining value | Taxable |
However, it’s not all bad news for these new Floridians.
This exemption only lasts five years, after which new homeowners will be eligible for the same exemption as other homeowners under Amendment 3.
WHAT ELSE DOES AMENDMENT 3 DO?
Meanwhile, the amendment also reduces the annual non-homestead property assessment growth cap from 10% to 5%, limiting how much these sorts of properties may be assessed each year.
In addition, the plan limits how local governments may spend property tax revenue:
- Public safety, including law enforcement, EMS and fire services
- Education and public schools
- Infrastructure, including roads, bridges and stormwater controls
- Natural resource projects, including flood control measures
- Issue local bonds for approved uses or to make debt service payments
- Meet obligations and retirement benefits of local government employees
- Fund the operations and administration of county officers and commissioners
Following its approval, the amendment is set to take effect on Jan. 1, 2027.