Property tax exemption jumps to $150,000 after Amendment 3 passes
Local governments face up to $12 billion in lost revenue as the new tax breaks take effect in 2027.
By Peter Graham ·
Florida voters approved Amendment 3 on Wednesday with roughly 62% of the vote, clearing the 60% threshold required for passage. The measure expands property tax exemptions for homeowners, a change that will lower bills for many residents starting in 2027.
The new law triples the homestead exemption for non-school property taxes. Currently, the exemption for these taxes is approximately $25,000, while the first $25,000 of assessed value is exempt from all property taxes. Under Amendment 3, homeowners will not owe non-school property taxes on the first $150,000 of their home's assessed value. The exemption is scheduled to increase to $250,000 the following year, with future adjustments for inflation.
The amendment also changes how taxable values rise for non-homestead properties, such as businesses and rental units. Previously, these values could increase by up to 10% annually. The new rule cuts that potential annual increase in half. Newcomers to Florida will not receive the expanded exemption until their fifth year of holding the standard exemption.
Savings for homeowners will not appear on 2026 tax bills. A Leon County Property Appraiser webpage states that all assessments and calculations for the 2026 tax year will follow existing law. The financial impact on local governments will be substantial. A state economic analysis projects local governments will lose nearly $5 billion in revenue initially. That loss is expected to approach $9 billion the next year, with a recurring impact of nearly $12 billion eventually.
Jackson Peel, communications director for Save Our Services - No on 3, said communities will face difficult choices. "You're going to see cuts to local services and programs, or you're going to see tax increases," Peel said. He added that local leaders must try to ensure these cuts or increases do not fall primarily on working families and seniors.
Gov. Ron DeSantis, who initially sought a larger tax cut, supported the measure as Election Day approached. At a press conference on Wednesday, he called the outcome meaningful for many Floridians. Because the amendment takes effect in early 2027, DeSantis said a special legislative session will be required before his term ends to write the implementing legislation. He indicated he would let lawmakers choose the dates for that session, describing himself as being on lame duck duty.
DeSantis described the approval as the beginning of efforts to eliminate property taxes in the state. He also mentioned working with the legislature to create a funding pool for grants to local governments and to limit other forms of taxation. Rep. Byron Donalds, who becomes governor on Jan. 5, has said he wants to completely repeal homestead property taxes if the math allows. DeSantis said if Donalds wants to achieve a tax-free homestead, he will need to find solutions to fund it.
The approval marks a major shift in state fiscal policy. The new exemption levels will apply to the 2027 tax year, which is based on property values as of Jan. 1, 2027.
