Florida homeowners could soon see significant changes to their property taxes following the approval of Amendment 3 in the November 3, 2026, election. The amendment expands homestead exemptions, changes how certain property assessments are calculated, and introduces new considerations for people planning to buy or sell a home in Florida.
For homeowners in Pensacola, Perdido Key, and throughout the Florida Panhandle, these changes could make a noticeable difference in the long-term cost of owning property. However, not everyone will benefit in the same way, and understanding the details is important before making your next real estate decision.
What Is Florida Amendment 3?
Florida voters approved Amendment 3 with approximately 62% of the vote, according to unofficial election results. The measure takes effect January 1, 2027, and introduces several changes to Florida's property tax system.
The most significant change is an increase in the homestead exemption, which reduces the assessed value of a qualifying primary residence for property tax purposes.
Under the amendment, the exemption for non-school property taxes will increase substantially over the next two years.
Tax Year | Maximum Homestead Exemption for Non-School Taxes |
|---|---|
2026 | $51,411 |
2027 | $150,000 |
2028 | $250,000 |
Beginning after 2028, the exemption will also adjust for inflation.
These changes could reduce property tax obligations for many qualifying Florida homeowners, particularly those whose assessed property values fall within the expanded exemption amounts.
However, there is an important distinction: Amendment 3 does not eliminate school property taxes. The existing $25,000 homestead exemption for school taxes remains unchanged.
How Much Could Florida Homeowners Save?
The potential savings depend on several factors, including the home's assessed value, local tax rates, existing exemptions, and whether the property qualifies as a primary residence.
Consider a Florida homeowner whose property has an assessed value of $400,000.
Under the previous exemption, approximately $348,589 of that value would be subject to non-school property taxes in 2026.
With Amendment 3, the taxable value for non-school taxes would decrease to:
- 2027: $250,000
- 2028: $150,000
That's a substantial reduction in the portion of the property's value subject to those taxes.
Still, a lower taxable value doesn't necessarily mean a homeowner's total property tax bill will decrease by the same percentage. Local governments can adjust tax rates, and certain assessments and fees aren't covered by the homestead exemption.
For homeowners trying to estimate their savings, reviewing the property's assessment with the local county property appraiser is the most reliable starting point.
What Amendment 3 Means for Florida Homebuyers
Buying a home in Florida involves more than comparing listing prices and mortgage payments. Property taxes can have a major impact on monthly housing expenses, especially for buyers relocating from another state.
Amendment 3 adds another detail buyers need to consider: when they became Florida residents.
Current Florida Residents May Qualify for Larger Exemptions
Buyers who were already Florida residents as of December 31, 2026, may qualify for the expanded exemption when purchasing a home that meets Florida's homestead requirements.
This could make homeownership more affordable for qualifying buyers, particularly those moving from one Florida property to another.
However, the exemption isn't automatically applied simply because someone purchases a home.
Homeowners must meet residency and ownership requirements and apply through their county property appraiser. The regular application deadline is March 1 for the applicable tax year.
Relocating to Florida? Timing Matters
Florida continues to attract buyers from across the country, particularly those looking to retire, relocate to the Gulf Coast, or enjoy a warmer climate.
Under Amendment 3, people who were not Florida residents on December 31, 2026, will face a different timeline.
New residents who qualify for homestead exemption will initially receive the existing exemption rather than the expanded amount. The larger exemption begins with their fifth year of exemption, subject to constitutional requirements and implementation rules.
For someone planning to move to Pensacola or Perdido Key, this means the timing of their move could influence their property tax expenses for several years.
Buyers should factor that difference into their long-term budgets rather than assuming they'll immediately receive the same exemption as an established Florida resident.
Don't Rely on the Seller's Property Tax Bill
One of the most common mistakes buyers make is assuming the property taxes shown on a listing will remain the same after closing.
In Florida, a property's assessed value generally resets to market value following a change in ownership. The previous owner's exemptions and accumulated assessment protections may not transfer to the buyer.
That means a home with relatively low property taxes today could carry a considerably higher bill for its next owner.
Before purchasing, buyers should request an estimate based on the anticipated purchase price and their individual exemption eligibility.
What About Second Homes and Investment Properties?
Not everyone purchasing property along the Florida Gulf Coast plans to make it their primary residence.
Perdido Key and Pensacola Beach, for example, attract buyers interested in vacation homes, seasonal properties, and investment opportunities.
Although these properties generally don't qualify for homestead exemptions, Amendment 3 includes a provision that could benefit their owners.
The amendment reduces the annual cap on assessment increases for non-homestead properties from 10% to 5% for non-school property taxes.
This means that, after the property establishes its assessed value, annual increases in that value will be subject to a lower limit for applicable taxes.
It's important to understand that this cap applies to assessment increases, not the total tax bill. School taxes are excluded from the new cap, and a property can still be reassessed at market value following a sale.
For investors and second-home owners, the change could provide greater predictability when estimating future ownership expenses.
What Florida Home Sellers Should Know
Amendment 3 doesn't just affect buyers. It may also influence the decisions of existing homeowners considering selling, downsizing, or relocating within Florida.
Save Our Homes Protections Remain in Place
Florida's Save Our Homes program limits annual increases in the assessed value of qualifying homestead properties to 3% or the rate of inflation, whichever is lower.
That protection remains unchanged under Amendment 3.
Homeowners who have owned their primary residence for many years may already benefit from substantial assessment savings, especially in areas where property values have increased significantly.
You May Be Able to Transfer Your Tax Savings
Florida also allows qualifying homeowners to transfer up to $500,000 of accumulated Save Our Homes assessment benefits when establishing a new homestead.
This process, known as portability, remains available under Amendment 3.
For example, someone selling a long-owned home in Pensacola to purchase a smaller property nearby may be able to transfer eligible assessment benefits while also qualifying for the expanded homestead exemption.
This combination could be especially important for retirees and longtime homeowners considering a move.
Eligibility requirements and deadlines apply, so homeowners should verify their available portability benefits before making a decision.
How Amendment 3 Could Affect the Gulf Coast Real Estate Market
The Florida Panhandle has a diverse housing market that includes primary residences, waterfront properties, vacation condos, and rental investments.
Because of that variety, the impact of Amendment 3 won't be the same for every property owner.
For permanent residents, the expanded homestead exemption could make owning a primary residence more affordable over time.
For buyers relocating from another state, the delayed eligibility for the larger exemption introduces an additional financial consideration.
Meanwhile, investors and second-home owners may benefit from the lower assessment cap, even though their properties won't qualify for the expanded homestead exemption.
There's also a broader question about how local governments will respond to potentially reduced property tax revenue.
Some local officials and public safety organizations have expressed concerns that lower collections could create challenges for funding public services. Local governments may respond through budget adjustments or changes to tax rates.
The full impact on communities throughout Escambia and Santa Rosa counties will become clearer as the amendment is implemented.
What Amendment 3 Doesn't Change
Despite the significant changes, several parts of Florida's property tax system remain the same.
The amendment does not change school property taxes, the existing $25,000 school-tax homestead exemption, or the Save Our Homes assessment cap.
Homeowners also retain existing portability provisions and other qualifying exemptions, including those available to certain seniors, veterans, and individuals with disabilities.
Additionally, non-ad valorem assessments, such as certain stormwater, fire, and solid waste charges, are not directly reduced by the expanded exemption.
Understanding these distinctions is important when estimating future property taxes.
Planning to Buy or Sell a Florida Home?
Property taxes are only one part of the financial picture when buying or selling real estate, but they can make a meaningful difference in long-term affordability.
With Amendment 3 taking effect in 2027, buyers and sellers should pay particular attention to residency requirements, reassessment rules, and available tax exemptions.
If you're considering purchasing a home in Pensacola, Perdido Key, or elsewhere along the Florida Gulf Coast, take time to review the property's estimated taxes alongside insurance, maintenance, and other ownership expenses.
For current homeowners, it may be worth evaluating how the expanded homestead exemption and existing portability benefits could affect plans to sell, downsize, or purchase another property.
The bottom line: Amendment 3 introduces potentially valuable tax benefits for Florida homeowners, but those benefits depend on the property, how it's used, and the owner's individual circumstances.
Understanding those details before making a move can help you make a more informed real estate decision.
At the CoateConnection Team with RE/MAX Gulf Properties, we're here to help buyers and sellers navigate the Gulf Coast real estate market with confidence. Whether you're purchasing your first Florida home, relocating to the area, or considering selling your current property, we're ready to help you explore your options.
Source: Adapted and independently rewritten from RE/MAX, "What Florida's Amendment 3 Means for Buyers and Sellers," published November 4, 2026. Additional reference: Florida Chamber of Commerce – Amendment 3.
Disclaimer: This article is intended for general informational purposes and should not be considered legal or tax advice. Amendment 3 implementation details may change as Florida adopts additional legislation. Consult your county property appraiser or a qualified tax professional for guidance regarding your specific property.
