Florida Amendment 3: What It Means for Your Homestead Exemption

By: Maggie Nolan, Esq.

With the November election just around the corner, Florida homeowners should have a strong understanding of the proposed Amendment 3 that will appear on Florida’s 2026 general election ballot. The amendment would simultaneously increase the Florida homestead exemption while lowering the cap on annual assessment increases for non-homestead property. Since making the ballot, Amendment 3 has frequently been discussed among politicians and voters. This article aims to provide a general understanding of Amendment 3 and the proposed changes to the Florida homestead exemption to inform voters before heading to the polls.

What is Florida’s Homestead Exemption?

The homestead exemption is a unique benefit for Florida homeowners that reduces the taxable value of residential property for homeowners. The Florida Legislature established the homestead exemption to lower the amount of property taxes levied against qualifying homeowners. Originally set in 1934 as a $5,000 tax exemption, Florida’s homestead exemption later increased to $25,000 in 1980 due to the rising market value. In 2026, here we are again facing another potential increase to the homestead exemption with Amendment 3.

There are two components of Florida’s current homestead exemption. First, there is the $25,000 reduction from a property’s assessed value that is exempt from all property taxes, including school taxes. Second, an additional $25,000 is exempt from non-school property taxes. The additional $25,000 exemption is applied to the property’s assessed value over $50,000. This additional exemption is adjusted annually for inflation using the Consumer Price Index (CPI). To provide a better understanding, see the example below provided by the Lee County Property Appraiser on its website:

A residential property has an assessed value of $80,000. The initial $25,000 exemption applies to all taxes, including school property taxes. Once the initial exemption is applied, the remaining value totals $55,000. The additional homestead exemption is to be applied to the assessed value over $50,000, so subtract $50,000 from $80,000. By doing so, $30,000 is eligible for the additional $25,000 exemption (or whatever the adjusted value may be via the CPI).

When a residential property qualifies for the homestead exemption, it is also given the Save Our Homes (SOH) benefit one year after the exemption is granted. Effective in 1995, the SOH benefit sets a three percent (3%) cap on annual assessment increases for a Florida homeowner’s homestead property, or the percentage change in the CPI, whichever is lower.

However, the exemption only applies to those who qualify. To be eligible to receive Florida’s homestead exemption, a homeowner must meet the following criteria:

1. Be a natural person. Ownership may not be held as a business entity (i.e., a limited liability company) but must be owned by an individual or individuals.
2. Have legal title or beneficial interest in real property as of January 1.
3. Classify the property as one’s permanent residence. There are numerous ways to establish Florida residency, such as, but not limited to: providing a Florida driver’s license, Florida vehicle registration, voter registration card, etc. The property must be the individual’s only established residency, meaning he or she may not claim a residency-based exemption in another state or through another Florida property.
4. File an application with the local property appraiser.
5. Recognize the respective acreage limitations for homestead protection:
   1. One-half (1/2) acre if located in a municipality
   2. 160 contiguous acres if located outside a municipality

If a homeowner meets the above requirements, then he or she may benefit from the homestead exemption. These same requirements will apply if Amendment 3 passes this November.

What Changes Does Florida Amendment 3 Propose?

Amendment 3 serves as another increase in the homestead exemption, similar to the one made in 1980. However, this time, the increase is much more substantial.

If approved by at least sixty percent (60%) of Florida voters, Amendment 3 would increase the homestead exemption for non-school property taxes from $25,000 to $150,000 in 2027 and to $250,000 in 2028. Instead of $25,000 of a property’s assessed value being exempt from non-school property taxes, potentially up to $150,000 (and in 2028, $250,000) of the property’s assessed value may be exempt.

Furthermore, not only do the eligibility requirements remain in place to qualify for homestead, but the amendment also includes an additional requirement. The increased exemption will only apply to Florida residents with homestead property by December 31, 2026. If you are not a Florida resident with qualifying homestead property by December 31^st, then the increased exemption will apply beginning with the fifth year of your exemption. In the meantime, if eligible, you will receive the current homestead benefits of up to a $50,000 exemption. Beginning in January 2030, Amendment 3 allows a county or municipality to reduce this five-year requirement by obtaining a two-thirds vote of its governing body.

The amendment also affects non-homestead property, such as rental and commercial properties. For non-homestead properties, there is currently a cap on property assessments that restricts the annual increase of a property’s assessed value to ten percent (10%). Amendment 3 proposes to lower the cap from ten to five percent (5%). The effect of this change would be for non-homestead property owners to see their annual property taxes increase at a slower rate than under the current 10% cap.

In short, Amendment 3 would substantially increase the homestead exemption for non-school property taxes while maintaining the original $25,000 exemption for school property taxes. While a majority of the focus among Florida politicians and voters lies with the changes to the homestead exemption, Amendment 3 also proposes changes for non-homestead property owners by lowering the cap on annual assessments.

Floridians’ Responses to Amendment 3

With the changes proposed by Amendment 3, there has been both positive and negative feedback from Florida voters. While some voters eagerly support the property tax relief Amendment 3 is anticipated to bring, opponents remain concerned about where local governments will look to obtain funding in the event the amendment passes. Many political and public figures have spoken out on their opinions of Amendment 3 and what Floridians should consider when voting either for or against it.

Some Floridians oppose Amendment 3 out of concern of how local governments will maintain funding if property taxes produce substantially less revenue with the increased exemptions. Funding for public entities such as law enforcement, fire department, libraries, and childcare will still exist if Amendment 3 is passed, and the unknown question of how governments will obtain such funds is a concern of some Florida voters. On the other hand, supporters of Amendment 3 believe local governments have collected ample property tax revenue and have waste to cut. Supporters believe local governments have the capability to revise budgets accordingly to ensure public services remain appropriately funded. Advocates of Amendment 3 argue that property tax relief should motivate Florida voters to vote for the amendment’s passage.

What Florida Property Owners Should Know Before Voting

As a Florida homestead property owner, or prospective owner, it is important to understand the intent behind and potential effect of Amendment 3. Whether you support or oppose the amendment, it is important to vote with an understanding of the matter. Hopefully, this article provides an introduction to Amendment 3 and encourages further research before heading to the polls.

If you are seeking further information or guidance on Florida homestead and the homestead exemption, please feel free to contact me at maggie.nolan@henlaw.com.