Florida Amendment 3 proposes major property tax exemption changes

Florida voters will decide on Amendment 3 during the November 3, 2026, general election. The proposal seeks to significantly expand the homestead property tax exemption, increasing it from $50,000 to $150,000 in 2027 and $250,000 in 2028, with subsequent inflation adjustments. To pass, the amendment requires a 60% majority.

Proponents, including Florida Realtors, argue the measure is essential for state affordability in response to rising property values. However, critics and local officials express concerns regarding the fiscal impact. State economists estimate the recurring cost to local governments could reach approximately $12 billion annually once fully implemented.

While the amendment provides relief for primary residences, it may impact rental properties and commercial buildings. The proposal would reduce the annual cap on assessment increases for non-homesteaded properties from 10% to 5%. Some analysts warn that local governments might raise tax rates to offset lost revenue, potentially increasing costs for rental properties and impacting investment decisions.