On November 3, Florida voters approved Amendment 3, the property tax reform that changes how tax bills work for homeowners across Southwest Florida. The amendment needed 60% of the vote to pass. It received approximately 62 percent, according to unofficial results.
The specifics of the proposed changes
Homestead exemption
The exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments after that. The current exemption is up to $51,411 for the 2026 tax year. School district taxes do not change, so homeowners still pay that portion of their bill.
Non-Homestead Property
The annual limit on assessment increases for business sites, second homes, and rental properties falls from 10% to 5% starting January 1, 2027.
Residency Requirements
People who were not Florida residents on December 31, 2026 receive the current homestead exemption when they first qualify, and the increased exemption begins in their fifth year of living in the state.
Local Property Tax Revenue
Counties and municipalities must use property tax revenue for specified purposes, including public safety, education, infrastructure, and natural resources.
Note: The amendment applies beginning with the 2027 tax roll. Your current 2026 bill does not change.
Who Could Be Affected by Amendment 3?
The amendment includes changes affecting both homestead and non-homestead property and could have broader implications for local property tax collections. Understanding which provisions apply to different types of property can help Floridians evaluate how the amendment may affect them and their communities.
Florida Homeowners
Qualifying homestead owners benefit directly from the larger exemption. If you already have a homestead exemption on file, you do not need to file anything new. If you are buying, you apply through your county property appraiser, and the general filing deadline is March 1.
Businesses & Commercial Property
Commercial property is generally classified as non-homestead property. Amendment 3 would reduce the annual cap on assessment increases for non-homestead property from 10 percent to 5 percent.
Renters & Rental Property
These properties do not qualify for the increased homestead exemption. However, the 5% assessment cap applies to them. Renters do not receive a homestead exemption because they do not own the property, so the amendment does not change their tax bill directly.
Local Communities & Governments
The amendment reduces local property tax collections, and the impact varies by city and county. Lee County officials have projected a loss of about $126 million in property tax revenue in year one and about $240 million in year two. Cape Coral’s mayor estimated a loss of about $28 million in 2027 and $47 million in 2028, and said core services like public safety would be fine. Cape Coral relies more heavily on homesteaded property taxes than Fort Myers, which has a more diverse tax base. Supporters see relief for homeowners, while local governments now face budget decisions.
Property taxes shape what a home costs to own each month, so buyers should ask for a tax estimate that reflects the new exemption. Sellers, meanwhile, can point to the change when they market a homesteaded property. If you are thinking about buying or selling in Southwest Florida, reach out to me directly and we can walk through your numbers.