Florida’s homestead exemption is about to get much bigger, and becoming a resident before the year ends decides how soon you see the savings.
Florida homeowners just got a huge break on their homes' assessed value. Amendment 3 needed 60% of the vote to pass and got 62%, so the changes go into effect in 2027. It’s great news for anyone who owns here now, and for residents who are looking to buy a home soon.
The exemption grows in two steps. Right now, having a homestead on your property gets you a $50,000 exemption. Under Amendment 3, that exemption on non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028. Estimates put the tax savings at $1,300 to $2,700 per year for qualifying homeowners.
Residency by year-end unlocks the savings. There is a catch, though. You must establish Florida residency by the end of 2026 to get the full benefit.
"You don’t have to close by year-end, but you do have to be a Florida resident."
As long as your residency is in place, you don’t necessarily have to close on a home by then. Closing before the year wraps up is what gets your homestead exemption working for you going into 2027. Miss the residency deadline, and you’ll have to wait five years to take advantage of the larger exemption.
Second homes get a 5% cap. If you’re a current homeowner with homestead, your assessed value is already capped at 3% a year. Investment properties and second homes have been able to climb as much as 10% annually. Under Amendment 3, they can go up by no more than 5% in a year.
Police and fire funding remains unclear. School funding isn’t affected by the larger exemption. The bigger question is where the money for police, fire, and some other local services will come from. We’ll be curious to see how that gets resolved over the next few months.
For now, owning a home here as a Florida resident offers a major benefit. If you want to know how Amendment 3 applies to you and how much it could save you, call, text, or email us anytime. You can reach the Tricoli Team at 561-220-2052, email info@tricoliteam.com, or visit tricoliteam.com. We’re always happy to run the numbers with you.