Florida voters have approved Amendment 3, bringing significant changes to the state’s property tax system and potentially providing meaningful tax relief for homeowners across the Sunshine State.
Florida Amendment 3 passed with approximately 62% of the vote in the November 3, 2026 election, clearing Florida’s 60% threshold required for constitutional amendments.
For homeowners in Bonita Springs, Naples, Estero, Fort Myers, and throughout Southwest Florida, the changes could make a noticeable difference in annual property tax bills over the next couple of years.
But what exactly does Amendment 3 change, when do the changes take effect, and how could they impact the local real estate market?
Here’s what Florida homeowners should know.
What Does Florida Amendment 3 Actually Do?
The biggest change under Amendment 3 is an increase to Florida’s homestead exemption for non-school property taxes.
Currently, Florida homeowners with an approved homestead exemption receive an exemption on the first $50,000 of their home’s assessed value for most property taxes.
Under the newly approved amendment, that exemption will increase substantially:
● 2027: The exemption increases to $150,000.
● 2028: The exemption increases again to $250,000.
● Future years: The exemption will be adjusted for inflation.
Importantly, the expanded exemption applies to non-school property taxes. Homeowners will still pay school-related property taxes under the existing exemption rules.
For example, consider a home with an assessed value of $500,000. Under the new rules, homeowners could eventually receive an additional $200,000 in assessed-value exemptions for applicable non-school property taxes compared to the current $50,000 exemption.
The actual savings will depend on local tax rates and other factors, but the change could provide substantial relief for qualifying homeowners.
When Will Florida Homeowners See Property Tax Savings?
The changes are scheduled to take effect January 1, 2027.
Homeowners should begin seeing the impact on their 2027 property tax bills, which are generally issued later in the year.
The larger exemption takes effect in 2028, meaning the potential savings will increase further the following year.
One important detail for people relocating to Florida: homeowners who were not Florida residents as of December 31, 2026, will generally have to wait until their fifth year of qualifying for a homestead exemption before receiving the increased exemption, subject to the amendment’s provisions.
This is particularly relevant for buyers moving to Southwest Florida from other states.
Amendment 3 Also Changes Property Taxes on Investment Properties and Second Homes
While much of the attention surrounding Amendment 3 has focused on homestead exemptions, there’s another important change that could benefit some non-homestead property owners.
Florida currently limits annual increases in assessed value for most non-homestead properties to 10%.
Amendment 3 reduces that cap to 5%.
This could benefit owners of:
● Rental properties
● Second homes and vacation properties
● Commercial real estate
● Other properties that do not qualify for homestead exemptions
The lower assessment cap could help slow the growth of taxable property values over time, potentially providing additional relief for real estate investors and second-home owners.
What Could Amendment 3 Mean for the Southwest Florida Real Estate Market?
Southwest Florida is a popular destination for retirees, second-home buyers, investors, and people relocating from other parts of the country.
Property taxes are an important part of the overall cost of homeownership, particularly in a market where buyers are also evaluating insurance premiums, mortgage rates, HOA fees, and other expenses.
The expanded homestead exemption could make homeownership more affordable for qualifying residents and potentially make Florida an even more attractive place to live.
Here are a few potential effects on our local market:
1. Improved Affordability for Existing Homeowners
For current homeowners with homestead exemptions, the increased exemption could reduce annual housing expenses. This is particularly meaningful for people on fixed incomes and retirees looking to manage their cost of living.
2. Another Selling Point for Florida Relocation Buyers
Florida has long attracted buyers from higher-tax states. The expanded exemption could provide another financial incentive for people considering a move to Southwest Florida.
However, buyers relocating after December 31, 2026, should be aware of the five-year waiting provision for the increased exemption.
3. Potential Benefits for Real Estate Investors
The reduction in the non-homestead assessment cap from 10% to 5% could make long-term property ownership more predictable for some investors.
For owners of rental properties, this could help limit how quickly assessed values increase over time.
4. Potential Impacts on Local Government Services
There is another side to the equation.
Property taxes are an important source of funding for local governments. Reducing property tax revenue could create budget challenges for counties and municipalities, potentially affecting services, infrastructure projects, and future local budgets.
How individual communities respond remains to be seen.
What Should Florida Homeowners Do Next?
For now, homeowners should understand that the changes are being phased in rather than happening all at once.
If you currently own a primary residence in Southwest Florida, make sure your homestead exemption is properly established and keep an eye on announcements from your county property appraiser.
If you’re considering purchasing a home, relocating to Florida, or investing in local real estate, it’s worth understanding how these changes could affect your individual property tax situation.
As always, property taxes are just one piece of the homeownership equation. Insurance, financing, maintenance, and other expenses should all be considered when evaluating a purchase.
Thinking About Buying or Selling a Home in Southwest Florida?
Changes to Florida’s property tax system could influence how buyers and homeowners approach real estate over the next few years.
Whether you’re considering purchasing your first home, relocating to Bonita Springs, selling an existing property, or investing in Southwest Florida real estate, understanding the local market is important.
We’re John and Brianna with the SWFL Home Group at Coldwell Banker, and we specialize in helping buyers and sellers throughout Bonita Springs and the surrounding Southwest Florida communities.
Have questions about the local real estate market or how these changes could affect your next move? Reach out to us. We’d be happy to help!
