Florida’s Homestead Property Tax Exemption has undergone a major change that could significantly help both homebuyers and existing homeowners.

Beginning January 1, 2027, Amendment 3 provides a major boost to the Homestead Property Tax Exemption, which could significantly improve home affordability and help lower overall housing costs.

This is especially important because property taxes are not simply an expense you worry about after closing. They are also part of the monthly housing expense that lenders use when determining mortgage qualification.

So let’s review what Florida Amendment 3 changed, how the expanded Homestead Exemption can improve home affordability, and why December 31 and January 1 continue to be important dates for eligibility.

Before we get started, don’t forget to download our newest USDA Blueprint for Success. This free guide walks you through the USDA loan process step by step and is a great resource for Florida homebuyers and Realtors alike.

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What Did Florida Amendment 3 Change?

Florida voters approved Amendment 3 during the November 3, 2026 General Election.

The amendment makes several important changes to Florida property-tax law, but for most Florida homebuyers and existing homeowners, the biggest change is the major boost to the Homestead Property Tax Exemption for non-school property taxes.

Beginning January 1, 2027, the Homestead Exemption applicable to non-school property taxes becomes:

• Up to $150,000 beginning January 1, 2027
• Up to $250,000 beginning January 1, 2028
• Adjusted for inflation beginning in 2029

Amendment 3 also lowers the annual assessment cap for qualifying non-homestead property from 10% to 5% and provides additional options for certain local taxing authorities.

For Florida homebuyers and homeowners, however, the expanded Homestead Exemption will likely receive the most attention.

You can review the official Amendment 3 provisions through the Florida Division of Elections.

How Much Is Florida’s Homestead Exemption in 2027 and 2028?

The important distinction is that the expanded exemption applies to non-school property taxes.

Beginning in 2027:

• School district taxes continue to receive the existing Homestead treatment.
• County, city, and other qualifying non-school ad valorem taxes may receive the expanded Homestead Exemption of up to $150,000.

Beginning in 2028, that non-school amount becomes up to $250,000.

Starting in 2029, the amount is adjusted for inflation when the applicable inflation adjustment is positive.

This represents a significant change from the Homestead structure Florida homeowners had before Amendment 3.

For 2026, the Florida Department of Revenue listed:

• the traditional $25,000 Homestead Exemption applicable to school, county, and municipal taxes; and
• an additional $26,411 CPI-adjusted Homestead Exemption applicable to qualifying non-school taxes.

Amendment 3 substantially expands the non-school portion beginning in 2027.

Does a $250,000 Homestead Exemption Mean No More Property Taxes?

No.

This is one of the most important points for Florida homeowners to understand.

The expanded Homestead Exemption applies to non-school ad valorem property taxes.

School district taxes continue to be treated separately.

Homeowners should also remember that non-ad valorem assessments, such as charges for fire and rescue, garbage, water, sewer, roads, drainage, and other governmental services, are separate and may still appear on the property-tax bill.

So, even with the larger Homestead benefit, homeowners should not assume that their entire Florida property-tax bill will disappear.

Actual savings will vary based on factors including:

• the property’s assessed value;
• the applicable Homestead Exemption;
• county and municipal millage rates;
• other taxing authorities;
• non-ad valorem assessments; and
• other exemptions or assessment limitations that may apply.

How Can Amendment 3 Help Improve Home Affordability?

When people discuss home affordability, the conversation often focuses on the home price or mortgage interest rate.

But your total monthly housing expense involves much more than principal and interest.

Depending on the property and transaction, housing expenses can also include:

• real estate taxes;
• homeowners insurance;
• flood insurance;
• homeowners association expenses; and
• other applicable housing costs.

Property taxes are therefore an important piece of the affordability equation.

For an existing homeowner, lower non-school property taxes may help reduce the ongoing cost of owning the home.

For a homebuyer applying for mortgage financing, the impact can be even more important because estimated property taxes are included in the monthly housing expense used during mortgage qualification.

A lower projected tax expense can potentially mean:

• a lower total monthly housing expense;
• improved debt-to-income ratios;
• greater qualifying flexibility; or
• additional purchasing power.

Every transaction is different, and a particular tax savings should never be assumed without reviewing the property-specific numbers.

But when qualification is close, even a change in the monthly property-tax expense can matter.

Florida USDA Homebuyers: Why Property Taxes Matter Before Closing

For USDA homebuyers, property taxes matter before closing, not simply after becoming a homeowner.

Estimated monthly real estate taxes are included when calculating the proposed monthly housing expense used during USDA loan qualification.

That means the lender must consider more than the principal and interest payment.

Taxes, insurance, and other applicable housing expenses also affect the overall qualification analysis.

This is why we consistently remind Florida homebuyers and Realtors:

Do not assume the seller’s current property-tax bill will become the buyer’s property-tax bill.

A longtime Florida homeowner may have:

• Homestead Exemption;
• years of accumulated Save Our Homes protection;
• other exemptions; or
• an assessed value substantially below the property’s current market value.

After a sale, the property can be reassessed, and the new homeowner’s exemptions and tax position may be very different.

That makes an accurate property-tax estimate especially important when determining whether a buyer qualifies for USDA financing.

Why December 31, 2026 Matters

One of the most important provisions of Amendment 3 involves December 31, 2026.

The amendment establishes a different Homestead structure for a person who had not maintained a permanent Florida residence as of December 31, 2026.

If that person later establishes a qualifying Florida Homestead:

• the school-tax Homestead treatment remains available under the applicable rules;
• the homeowner initially receives the existing Homestead treatment for non-school taxes; and
• the full expanded exemption generally becomes available beginning with the homeowner’s fifth year of Homestead Exemption, subject to the constitutional provisions and any applicable future local action.

This makes December 31, 2026 particularly important for individuals relocating to Florida.

Does That Mean Buyers Should Rush to Close Before December 31?

Not simply for property-tax purposes.

The important issue is permanent Florida residency, not just the closing date.

Signing a purchase contract or scheduling a closing before December 31 does not automatically establish Florida residency or Homestead eligibility.

The homeowner must satisfy the applicable requirements.

Homebuyers who are relocating to Florida around year-end should therefore pay close attention to:

• when they actually establish permanent Florida residency;
• when they acquire ownership of the home;
• when the property becomes their permanent residence; and
• the documentation required by the applicable county property appraiser.

If you have a specific eligibility question, the county property appraiser is an important resource for determining how the Homestead requirements apply to your circumstances.

January 1 Continues to Matter for Florida Homestead Eligibility

December 31 is not the only important date.

January 1 continues to be critical for Florida Homestead eligibility.

Generally, a homeowner seeking Homestead Exemption for a particular tax year needs to have the required ownership interest and make the property a permanent residence as of January 1.

For homebuyers purchasing near the end of the year, this means the timing of the purchase and establishment of permanent residency can be particularly important.

That is why December 31 and January 1 should be part of the conversation when a Florida home purchase is occurring near year-end.

What Stays the Same: Save Our Homes

Amendment 3 provides a major boost to the Homestead Exemption, but Florida’s Save Our Homes assessment limitation continues to be extremely important.

Once a property qualifies for Homestead, Save Our Homes generally limits annual growth in assessed value to the lower of:

• 3%; or
• the applicable change in the Consumer Price Index.

Over time, that protection can create a substantial difference between a home’s market value and assessed value.

This is another reason a seller’s existing property-tax bill may not accurately predict what a buyer will pay after purchasing the home.

After a change in ownership, the property can generally be reassessed at just value, subject to applicable Florida law.

What About Homestead Portability?

Florida Homestead portability also remains important.

A qualifying Florida homeowner who establishes a new Homestead may be able to transfer some or all of an existing Save Our Homes assessment difference to another qualifying Florida Homestead, subject to Florida’s portability rules and limitations.

This can be particularly valuable for existing Florida homeowners who are selling one primary residence and purchasing another.

The availability and amount of portability will depend on the homeowner’s individual circumstances, so buyers should confirm the applicable calculation with the county property appraiser.

What About Rentals, Second Homes, and Other Non-Homestead Property?

Amendment 3 also changes the annual assessment limitation for certain non-homestead property.

Beginning January 1, 2027, the annual assessment cap for qualifying non-homestead property drops from 10% to 5% for applicable non-school taxes.

That can affect certain:

• rental properties;
• second homes;
• investment properties; and
• other qualifying non-homestead real estate.

However, a change of ownership or control can still affect the property’s assessed value.

For most Florida buyers purchasing a primary residence, the expanded Homestead Exemption will remain the more immediate consideration.

Florida Realtors: Property Taxes Should Be Reviewed Early

Amendment 3 makes early property-tax conversations even more important for Florida Realtors.

When assisting a buyer, it can be helpful to identify:

• the seller’s current assessed value;
• the seller’s current exemptions;
• whether Save Our Homes is affecting the current tax bill;
• the anticipated purchase price;
• whether the buyer intends to claim Homestead;
• whether the buyer is relocating to Florida;
• the timing of the purchase around December 31 and January 1; and
• the property-tax estimate being used for mortgage qualification.

A Realtor does not need to calculate the buyer’s final property-tax bill.

But identifying potential discrepancies early can allow the buyer, lender, and county property appraiser to address the issue before it becomes an underwriting problem or an unexpected expense after closing.

What Should Florida Homebuyers Do?

If you are purchasing a Florida primary residence, particularly near year-end, consider reviewing:

• when you expect to close;
• when the property will become your permanent residence;
• your Florida residency status as of December 31, 2026;
• whether you expect to qualify for Homestead as of January 1;
• the seller’s current assessed value and exemptions;
• whether Save Our Homes is affecting the existing tax bill;
• whether portability may apply to you;
• the property-tax estimate being used by your mortgage lender; and
• the filing requirements of the county property appraiser.

The goal is not to make a home purchase more complicated.

It is to make sure the property-tax numbers being used before closing realistically reflect the buyer’s expected situation after closing.

Florida Amendment 3 and Home Affordability: The Bottom Line

Florida Amendment 3 represents a major change to the Homestead Property Tax Exemption.

Beginning January 1, 2027, qualifying homeowners may receive up to $150,000 of Homestead Exemption for non-school property taxes.

Beginning January 1, 2028, that amount becomes up to $250,000, followed by inflation adjustments beginning in 2029.

For qualifying homeowners, that can help lower non-school property taxes and reduce one component of the overall cost of homeownership.

For mortgage borrowers, it may also help reduce the monthly housing expense used during qualification.

But the details matter.

The expanded exemption does not eliminate school taxes. Non-ad valorem assessments such as fire and rescue, garbage, water, sewer, roads, drainage, and other governmental services can remain. Property-specific savings will vary. And the December 31, 2026 residency provision makes year-end timing especially important for some Florida homebuyers.

The most important takeaway is simple:

Understand how Homestead, property taxes, and year-end timing apply to your individual transaction before making assumptions about your future housing expense.

Why Metroplex Mortgage Services?

Not all USDA lenders in Florida have the same level of experience.

Metroplex Mortgage Services has been recognized by USDA Rural Development as the #1 Ranked USDA Lender in Florida for 2017, 2023, 2024, and 2025.

When you work with Metroplex Mortgage Services, you benefit from:

• #1 Ranked USDA Lender in Florida — 2017, 2023, 2024, and 2025
• Experienced in-house USDA underwriting
• A dedicated team experienced with USDA eligibility, underwriting, property requirements, and closing procedures
• More than 25 years of experience serving Florida homebuyers, Realtors, and communities
• Experience navigating unique Florida property issues, including rural properties, manufactured homes, property eligibility, flood zones, credit challenges, and other USDA-specific requirements

For Florida homebuyers, understanding real estate taxes is an important part of determining an affordable monthly housing expense.

With the changes created by Florida Amendment 3, accurately estimating future property taxes can become even more important when determining USDA loan qualification and overall home affordability.

Schedule Your Free USDA Loan Consultation in Florida

Are you considering purchasing a home in Florida and have questions about USDA financing, Homestead Exemption, estimated property taxes, or how your proposed monthly housing expense may affect qualification?

Let us provide a free USDA loan consultation.

Whether you are just getting started, have already found a property, or need a second opinion on an existing loan, our experienced USDA lending team is available to review your specific situation and help determine what options may be available.

Homebuyers and Realtors — just call, text, or email us today and let Florida’s #1 Ranked USDA Lender show you the “Metroplex” difference!

Call/Text: 863-593-2001
Toll-Free: 800-806-9836 Ext. 280
Email: SeanS@MPLX.org

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This free guide is designed to help Florida homebuyers and Realtors better understand the USDA loan process from qualification through closing.

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