Florida voters approved Amendment 3, and it is one of the biggest property tax changes in years. Here is the simple version, with what it means for Miami-Dade homeowners, buyers, and renters.
The Big Picture
✓ A bigger homestead exemption. The exemption on non-school property taxes goes from about $50,000 today to $150,000 in 2027 and $250,000 in 2028. After that, it adjusts for inflation.
✓ Lower taxable value. A bigger exemption means less of your home’s value is taxed, which can mean a lower bill.
✓ A lower cap on investment property. Rentals, second homes, and commercial properties see their yearly assessment cap drop from 10% to 5%.
✓ Start date: January 1, 2027. Your November 2026 bill is not affected. The first bills showing the change arrive in November 2027.
A Simple Example
Say your combined non-school tax rate is 15 mills. A $200,000 increase in your exemption by 2028 would save you about $3,000 a year. Your real number depends on your local rates, so treat this as a hypothetical.
Keep in mind that school taxes are not affected, and non-school taxes are roughly 60% of a typical bill.
Do You Own Your Home and Live in It?
If you already have homestead, the increase is designed to apply to you too. Your county property appraiser can confirm how it will show up on your bill.
Thinking About Buying?
Here is where timing matters.
✓ If you buy and move in before January 1, 2027, you can apply for homestead on your 2027 tax bill instead of waiting until 2028.
✓ If you are already a Florida resident, you qualify for the bigger exemption whenever you buy and apply for homestead. Your residency on December 31, 2026 is what counts.
Moving to Florida From Out of State?
December 31, 2026 is your key date.
✓ A Florida resident by December 31, 2026? You get the full, larger exemption once you buy and homestead.
✓ Not a resident until 2027 or later? You start with the current exemption (about $50,000) and move up to the larger one in your fifth year of homestead.
If you are planning a move, talk with your attorney or CPA about what counts as establishing Florida residency, and do it well before the deadline.
Renting in Florida?
Homestead is only for homeowners who live in the home they own, so renters do not receive the exemption.
But if you are a permanent Florida resident by December 31, 2026 and buy a home later, you should still qualify for the larger exemption when you apply for homestead. Renting now does not cost you the benefit, as long as your residency is established by that date.
Who Does Not Get the Bigger Exemption?
✓ Second homes
✓ Rental properties
✓ Commercial properties
These still benefit from the lower 5% assessment cap, which should make tax growth more predictable. Fees and special assessments are not covered by homestead exemptions.
What About Local Services?
This is where the debate is sharpest. Miami-Dade estimates it will collect about $385.8 million less in property tax revenue beginning October 2027, growing to $696.7 million in October 2028. Statewide, economists project nearly $12 billion in lost local revenue.
Supporters say local governments should tighten their belts. Opponents, including the Florida League of Cities, the Florida Association of Counties, the Florida Sheriffs Association, and Florida TaxWatch, worry about budgets, services, and fees. Amendment 3 also does not limit local millage rates, so some governments may raise rates to make up the difference. How cities and counties respond over the next few budget cycles will decide the real impact.
The Bottom Line
✓ Homeowners with homestead may see lower carrying costs.
✓ Buyers who close and move in before January 1 can start sooner.
✓ New Florida residents should watch the December 31, 2026 date.
✓ Renters who establish residency by then keep the benefit for a future purchase.
✓ Investors and second-home owners get the lower cap, but not the bigger exemption.
It is too early to say how this will affect home prices, so run the numbers before any purchase.
Thinking about buying or selling in Pinecrest, Coconut Grove, or Coral Gables? We are happy to walk through how Amendment 3 could affect your situation.
