Florida Amendment 3 Passed! What Does This Mean for Homeowners?

Florida voters approved Amendment 3 on November 3, 2026, bringing some significant changes to the state’s property tax system. So, what does this actually mean for homeowners and people looking to buy property in Florida?

The biggest change? A much larger homestead exemption for qualifying Florida homeowners.

Here’s a breakdown of what you need to know:

1. Increased Homestead Exemption

The current homestead exemption will increase for property taxes that do not fund public schools.

• 2027: The exemption increases to $150,000.
• 2028: The exemption increases to $250,000.
• 2029 and beyond: The exemption will be adjusted for inflation.

This means eligible homeowners could see a meaningful reduction in their annual property tax bills.

Keep in mind, the exemption does not apply to school district property taxes, and your actual savings will depend on your property’s assessed value and local tax rates.

2. What About New Florida Residents?

There is an important detail for people planning to relocate to Florida.

To receive the expanded exemption right away, homeowners must meet the residency requirements, including being Florida residents as of December 31, 2026.

Those who establish Florida residency after that date will generally have to wait until their fifth year of receiving a homestead exemption to receive the increased benefit.

3. What About Investment Properties and Second Homes?

Amendment 3 also reduces the annual cap on assessed value increases for non-homestead properties from 10% to 5% (excluding school taxes).

This includes properties such as:

• Rental properties
• Second homes
• Commercial properties
• Vacant land

This could be welcome news for some investment property owners who have experienced significant increases in assessed values over the years.

4. Will This Affect Local Communities?

There is another side to this change. 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 and future spending decisions.

What Does This Mean for the Pensacola Real Estate Market?

Property taxes are a significant part of the cost of homeownership, so this change could make owning a home in Florida more affordable for some buyers.

However, property taxes are just one piece of the puzzle. Home prices, interest rates, homeowners insurance, and maintenance costs still play a major role when determining what you can comfortably afford.

Thinking about buying or selling in the Pensacola area? Understanding the numbers behind homeownership is just as important as finding the right house.

If you have questions about buying, selling, or making a move in Escambia, Santa Rosa, or Okaloosa County, I’m always happy to help!

Christina Madarena | Your Gulf Coast Realtor®

Call or text: 850.777.4002
ChristinaSellsTheGulfCoast@gmail.com

Note: Property tax changes can vary based on individual circumstances. Consult your local property appraiser or tax professional for information about your specific property.