Florida Amendment 3 Passed: What It Means for Homeowners, Buyers and Sellers

Florida voters approved Amendment 3 on November 3, 2026, bringing some of the biggest changes to Florida’s homestead property tax structure in years.

If you own a home in Florida, are considering buying one, thinking about selling, or own investment property, this matters.

Beginning January 1, 2027, the homestead exemption for qualifying properties will increase to $150,000 for non-school property taxes. In 2028, it increases again to $250,000. The amendment also reduces the annual assessment-growth limitation on non-homestead properties from 10% to 5% for non-school levies. [vcpa.vcgov.org], [ocfl.net]

But what does all of that actually mean for your wallet and for the Central Florida real estate market?

Let’s break it down.

Florida’s Homestead Exemption Is Getting Much Larger

Under the existing system, a qualifying Florida homeowner can receive up to roughly $50,000 in homestead exemptions from their home’s assessed value, although the exemption is actually structured in separate portions and not all of it applies to school taxes. For example, the Seminole County Property Appraiser homestead exemption page explains that the first $25,000 applies to all taxing authorities, while the additional exemption excludes School Board taxes. [scpafl.org]

Amendment 3 changes that significantly.

For qualifying homesteaded properties:

2027: The exemption for non-school property taxes increases to $150,000.

2028: The exemption increases to $250,000.

School taxes: The expanded exemption does not apply to school taxes. [vcpa.vcgov.org], [ocfl.net]

It’s important to understand that this is not a $150,000 or $250,000 reduction in your tax bill.

It is an exemption from taxable value. Your actual dollar savings will depend on your home’s assessed value, other exemptions and the applicable local tax rates.

The Volusia County Property Appraiser Amendment 3 FAQ also notes that the amendment changes taxable value, not tax rates. [vcpa.vcgov.org]

What Does Amendment 3 Mean for Florida Homeowners?

For qualifying homeowners, the most immediate benefit is potentially lower property taxes.

The exact savings will be different for every property. The size of the benefit depends on factors including your assessed value, existing exemptions and local tax rates.

Existing homesteaded homeowners may see their taxable value for non-school taxes reduced, or in some situations eliminated, according to the Volusia County Property Appraiser Amendment 3 FAQ. The office also notes that recent homestead buyers may be more likely to receive the full benefit because their taxable values are often closer to market value. [vcpa.vcgov.org]

That last point is particularly interesting when we start talking about the real estate market.

What Amendment 3 Could Mean for Florida Home Buyers

Here’s where the tax change becomes a real estate story.

Property taxes are part of the overall cost of owning a home.

If the taxes on a qualifying property are lower, the homeowner’s overall annual housing expense can also be lower.

For someone comfortably qualified for a home, that’s simply additional savings.

But for someone who has been sitting right on the edge of what they can comfortably afford, those savings could be more meaningful.

That could effectively give certain buyers a little more breathing room in their housing budget.

And I think this may be particularly important at Central Florida’s more affordable price points.

A similar dollar amount of annual tax savings represents a larger percentage of the overall housing expense on a more affordable home than it does on a multimillion-dollar property.

That doesn’t suddenly make every property affordable, of course. Interest rates, insurance, HOA expenses, purchase price and other costs still matter.

But it does change one piece of the affordability equation.

What Amendment 3 Could Mean for Florida Home Sellers

Sellers should pay attention for essentially the same reason.

If a buyer is looking at your home and the ongoing ownership cost becomes a little lower, your property could become more comfortable for someone who previously felt it was just outside their budget.

In other words, Amendment 3 isn't only about existing homeowners getting a tax break.

It could potentially affect buyer purchasing power and the pool of buyers who can comfortably consider certain properties.

For sellers at more affordable and middle-market price points, I think that is one of the most interesting potential effects to watch as these changes take effect.

What If You Own a Rental, Second Home or Investment Property?

There is another significant component of Amendment 3 that has received less attention.

Beginning in 2027, the annual assessment limitation for non-homestead properties drops from 10% to 5% for non-school levies.

That category can include rental properties, second homes and commercial properties. [vcpa.vcgov.org], [ocfl.net]

For real estate investors, that's meaningful.

If Florida experiences another period of rapid property appreciation, the lower assessment-growth limitation can slow how quickly the assessed value used for applicable non-school taxes increases.

There is an important distinction, though.

The Volusia County Property Appraiser specifically notes that the 5% limitation caps assessed-value growth, not the tax itself, and that school taxes remain based on just/market value for these properties. [vcpa.vcgov.org]

The Big Caveat: Florida Residency Matters

This is one of the most important details of Amendment 3, especially for people considering relocating to Florida.

New Florida residents beginning January 1, 2027 do not immediately receive the larger exemption.

They begin with the exemption established for new Florida residents. The larger exemption becomes available after maintaining a Florida homestead exemption for four years and first applies beginning January 1 of the fifth year. [vcpa.vcgov.org]

That means residency timing matters.

For someone already planning a move to Florida, it is worth understanding these rules before making assumptions about future property taxes.

Do Existing Homestead Owners Need to Reapply Because of Amendment 3?

If you already have homestead, don’t assume you need to submit a new application solely because the exemption amount changed.

County property appraisers commonly renew an existing homestead exemption automatically as long as the owner continues to qualify. For example, the Seminole County Property Appraiser states that approved homestead exemptions automatically renew annually as long as there have been no changes in use or ownership. [scpafl.org]

The important distinction is for new homeowners or people who have not yet established homestead.

That’s where the application links below come in.

How to Apply for Homestead Exemption in Central Florida

Homestead exemption is administered through the property appraiser in the county where your property is located.

Here are direct resources for several of the primary counties we work in throughout Central Florida.

Orange County

The Orange County Property Appraiser provides information about homestead eligibility and filing. Its homestead page says applications may be filed online, by mail or in person. [ocpaweb.ocpafl.org], [ocpaweb.ocpafl.org]

Orange County Homestead Exemption Information

One note: its separate online filing page currently says online filings are temporarily unavailable due to a system upgrade and directs applicants to contact the office about filing by phone or scheduling an appointment. [exemption.ocpafl.org]

Seminole County

The Seminole County Property Appraiser allows homeowners to file online, in person, or by mail/email and lists March 1 as the filing deadline. [scpafl.org], [files.scpafl.org]

Seminole County Online Homestead Application

This is particularly relevant for homeowners in areas such as Winter Springs, Oviedo, Lake Mary, Longwood, Altamonte Springs and Sanford.

Osceola County

The Osceola County Property Appraiser offers an online exemption filing service. The application states that applicants must be Florida residents, own and reside in the property by January 1 of the applicable year, and provide specified identification and residency information. [efile.prop...raiser.org]

Osceola County Online Exemption Filing

Lake County

The official Lake County Property Appraiser exemption page says qualifying homeowners can apply online, by mail or in person. It says homeowners must own and occupy the Lake County property as their permanent residence as of January 1 and submit an application no later than March 1 for the year in which they want the exemption to begin. [lakecopropappr.com]

Lake County Homestead Exemption Information

Volusia County

The Volusia County Property Appraiser is currently accepting online applications for the 2027 homestead exemption. [vcpa.vcgov.org], [smartfile.vcgov.org]

Volusia County Online Homestead Filing

The county also maintains a dedicated Amendment 3 FAQ that explains how the new rules affect different types of property owners. [vcpa.vcgov.org]

Brevard County

The official Brevard County Property Appraiser provides an online Homestead Exemption application. The office says applicants will be asked for information including a Social Security number, driver’s license number, date of birth and residency information. [bcpao.us]

Brevard County Online Homestead Filing

Polk County

The Polk County Property Appraiser allows homeowners to apply online, by mail or in person. Its filing guidance lists a statutory March 1 deadline, subject to weekend or holiday adjustments, and describes the documentation used for a homestead application. [exemptions...lkflpa.gov], [exemptions...lkflpa.gov]

Polk County Homestead & Exemption Information

The Bottom Line for Central Florida Real Estate

Amendment 3 isn't simply another change to Florida tax law.

It changes part of the ongoing cost equation of owning property in Florida.

Existing homeowners may benefit from a substantially larger exemption on non-school property taxes.

Some future buyers could have a little more room in their housing budgets.

Sellers could potentially benefit if lower ownership costs make their properties comfortable for a broader pool of buyers.

And investors and second-home owners receive a different form of protection through the reduction of the non-homestead assessment-growth limitation from 10% to 5% for non-school levies. [vcpa.vcgov.org]

And I believe the impact could be especially noticeable at more affordable price points, where a given amount of annual savings represents a larger share of the overall cost of owning the home.

As always, every property and tax situation is different. Before making a purchase or financial decision based on estimated property taxes, homeowners and buyers should verify the property-specific numbers with the appropriate county property appraiser and their tax professional.

If you're thinking about buying or selling a home in Orlando, Winter Park, Windermere or greater Central Florida and want to understand how these changes could affect the real estate side of that decision, feel free to reach out to us at Kennedy Group | Compass or visit LuxOrlando.com.

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