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Florida Amendment 3 Explained: $250K Homestead Exemption, Examples (2026)

The definitive guide to Florida Amendment 3: $150K then $250K homestead exemption, 5% cap, the new-resident rule, worked dollar examples and county losses.

Short answer: Amendment 3 replaces Florida's homestead exemption with a much larger non-school exemption: up to $150,000 in 2027 and $250,000 in 2028, inflation-indexed from 2029. School taxes keep only a $25,000 exemption. Non-homestead property gets a 5% cap on yearly assessment growth (down from 10%). People who become Florida residents on or after Jan 1, 2027 start at $50,000 and qualify for the larger exemption in their fifth year.

The rules, side by side

Rule2026 (before)202720282029 on
Homestead exemption, non-school taxesUp to $51,411Up to $150,000Up to $250,000$250,000 + CPI
Homestead exemption, school taxes$25,000$25,000$25,000$25,000
New residents (from Jan 1, 2027), non-schooln/a$50,000$50,000 + CPILarger exemption from year 5
Non-homestead assessment cap10% a year5% a year5% a year5% a year
Default maximum millageCurrent formulaTied to rolled-back rateSameSame

Sources: Pinellas County Property Appraiser FAQ; Florida Association of Counties summary of HJR 1-F; HJR 1-F amendment text (Florida Senate).

Worked example: taxable value for a homestead

Illustrative math applying the rules above to a long-time homesteaded owner, holding assessed value constant. Non-school taxable value is assessed value minus the exemption, never below zero.

Assessed value2026 non-school taxable2027 non-school taxable2028 non-school taxableSchool taxable (all years)
$200,000$148,589$50,000$0$175,000
$300,000$248,589$150,000$50,000$275,000
$400,000$348,589$250,000$150,000$375,000
$500,000$448,589$350,000$250,000$475,000

Formula: 2026 = value − $51,411; 2027 = value − $150,000; 2028 = value − $250,000; school = value − $25,000. Same method as the Village of Palm Springs example ($300,000 home: $248,589 → $150,000 → $50,000).

Worked example: non-school tax at 12.2011 mills

Pinellas County's property appraiser illustrates savings using the 2025 countywide average non-school millage of 12.2011 mills. Applying that same rate:

Assessed value2026 non-school tax20272028
$200,000$1,813$610$0
$300,000$3,033$1,830$610
$400,000$4,253$3,050$1,830
$500,000$5,473$4,270$3,050

Illustrative only; one mill = $1 per $1,000 of taxable value. Pinellas reports estimated savings of about $1,203 (2027) and $2,423 (2028) for a home receiving the full exemption (source). Your rate depends on your city, fire district and MSTUs. Use the calculator with your county's average.

New residents: the four-year wait

If you become a Florida resident on or after Jan 1, 2027, the non-school exemption applies to the first $50,000 of assessed value (CPI-adjusted from 2028). After you hold a homestead exemption for four years, the larger exemption starts Jan 1 of the fifth year (Pinellas County Property Appraiser). On a $400,000 home in 2028, that is non-school taxable value of $350,000 for a new arrival versus $150,000 for a long-time resident: $200,000 more taxable value (illustrative math).

The 5% cap for rentals, second homes and businesses

Illustrative: a $200,000 non-homestead assessment in a market rising 8% a year.

YearMarket valueAssessed, 10% capAssessed, 5% cap
2027$216,000$216,000$210,000
2028$233,280$233,280$220,500
2029$251,942$251,942$231,525
2030$272,098$272,098$243,101
2031$293,866$293,866$255,256

Illustrative math; actual growth varies. Cap change source: Florida Association of Counties.

What local governments lose

Fiscal yearEstimated local loss
FY 2027-28$4.93B
FY 2028-29$8.71B
FY 2029-30$9.65B
FY 2030-31$10.71B
FY 2031-32$11.83B
5-year total$45.84B

Source: Florida TaxWatch Property Tax Resource Center (Revenue Estimating Conference estimates and DOR 2025 millage, Oct 2026). County governments account for $3.20B of the first-year loss and independent special districts $432.8M. See your county's estimate.

Why fees may rise

A homestead exemption only reduces ad valorem (value-based) taxes. Non-ad valorem assessments such as fire, stormwater and solid-waste charges appear on the same bill but are not reduced by it. Counties are already discussing these options: Hillsborough is reviewing a fire assessment or MSTU, Osceola lists a higher fire assessment, and Alachua is discussing higher service fees. See the statewide tracker.

Timeline

See what changes in 2027 vs 2028 for the year-by-year detail.

Frequently asked questions

What does Amendment 3 do?

It replaces the current homestead exemption with a non-school exemption of up to $150,000 in 2027 and $250,000 in 2028, indexed to inflation from 2029, keeps a $25,000 exemption for school taxes, and lowers the non-homestead assessment cap from 10% to 5%. Sources: Pinellas County Property Appraiser, Florida Association of Counties.

Did Amendment 3 pass?

Yes. It passed on Nov 3, 2026 with about 62% of the vote; constitutional amendments need 60%. Source: The Alligator.

What is the homestead exemption in 2026, before the change?

Up to $51,411: $25,000 off all taxes including school, plus $26,411 off non-school taxes (CPI-adjusted). Source: Pinellas County Property Appraiser.

Does Amendment 3 lower school taxes?

No. Only the first $25,000 of assessed value stays exempt from school taxes, so most homeowners still get a school tax bill. Source: Palm Beach County Property Appraiser.

What happens to people who move to Florida in 2027 or later?

New residents on or after Jan 1, 2027 start with a $50,000 non-school exemption (CPI-adjusted from 2028). After keeping a homestead exemption for four years, they qualify for the larger exemption starting Jan 1 of the fifth year. Source: Pinellas County Property Appraiser.

Does Amendment 3 affect rentals, second homes and businesses?

They get no new exemption, but their assessed value can rise at most 5% a year instead of 10%. Source: Florida Association of Counties.

How much revenue will local governments lose?

The Revenue Estimating Conference figures compiled by Florida TaxWatch show $4.93B in FY 2027-28, rising to $11.83B in FY 2031-32, or $45.84B over five years. Source: Florida TaxWatch.

Can my county raise fees instead?

Non-ad valorem assessments (fire, stormwater, solid waste) and user fees are not reduced by the homestead exemption, which is why we track them. Any new assessment must be adopted at a public hearing. See our fire assessment tracker.

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