Florida Amendment 3: What It Means for 30A Home Buyers

Amendment 3 takes effect January 1, 2027. It changes two things: the homestead exemption on a primary residence, and the yearly cap on assessment increases for every other kind of property (Florida Realtors).

• Homestead exemption, 2027$150,000 off the assessed value of a homesteaded primary residence for non-school property taxes, up from about $50,000.
• Homestead exemption, 2028$250,000 for non-school property taxes, with annual inflation adjustments beginning in 2029.
• School district taxesUnchanged. The existing $25,000 school exemption still applies.
• Non-homestead assessment capDrops from 10% to 5% a year for non-school taxes on second homes, rentals and commercial property.
• Save Our Homes and portabilityUnchanged.

One point is easy to miss. An exemption reduces taxable value, not the tax bill dollar for dollar. What a homeowner saves depends on the home's assessed value and the local millage rates that apply to it.

Amendment 3 sorts homeowners by one question: were you a permanent Florida resident on December 31, 2026?

If you were, you can receive the larger exemption as it phases in, once you qualify for homestead. If you were not, you can still claim Florida's homestead exemption, but you start with the existing exemption. The larger one begins in your fifth year of homestead exemption (CBS12).

What does that look like in practice?

A family that establishes Florida residency and homestead in 2027 would generally receive the existing $50,000 exemption for its first four qualifying years, then the larger exemption beginning in year five. The clock runs on years of homestead exemption, not on the date you bought the house or got a Florida driver's license.

Is residency the same as homestead?

No, and the difference matters. Residency is where your permanent home is. Homestead is a tax status on a specific property. To claim homestead for a given year, Florida generally requires that you own and make the home your permanent residence by January 1, and apply with your county property appraiser by March 1 (Florida Department of Revenue, PT-113).

A family that becomes a Florida resident by December 31 but buys on 30A later can still benefit, because the residency date is what places them in the first group.

For a homesteaded primary residence in Walton County, Amendment 3 removes a larger slice of assessed value from county and special district taxes. School taxes stay as they are.

Owners who already have homestead do not need to reapply. The new amounts are expected to show up first on the proposed tax notices mailed in August 2027, with bills later that year. Your 2026 bill is not affected (CBS12).

For families relocating from higher-tax states, Florida's tax environment was already part of the case for a move. Amendment 3 adds a timing question to it, and that question has a deadline.

A large share of 30A real estate is owned as second homes and income property. Those homes do not qualify for the homestead exemption. Amendment 3 helps them in a different way.

Starting in 2027, the assessed value of a non-homestead property can rise no more than 5% a year for non-school taxes, down from 10%. That makes future carrying costs more predictable for owners who hold.

Does the 5% cap lower a buyer's first tax bill?

No. In Florida, a non-homestead property's assessed value generally resets to market value after a change of ownership. The cap protects you after you buy, not before. Plan your carrying costs on the new assessed value, not the seller's current tax bill.

We walk through exactly how that reset works for a second home in our post, Under Amendment 3, a Watersound Second Home's Tax Clock Still Resets at Closing.

The amendment is approved, but the details of how it is carried out are not final. Governor DeSantis has said he plans to call a special legislative session before his term ends in early January 2027 to implement it, including a schedule for future exemptions and limits on local governments replacing the lost revenue with other taxes (Florida Realtors).

We will update this post as that guidance is published. In the meantime, the residency date and the exemption amounts above come from the amendment itself.

1. Decide whether 30A will be your primary home.The December 31 date only matters for a permanent residence. A second home follows the 5% cap instead.
2. Talk to your tax advisor and attorney now.Domicile, timing and your individual tax picture should be reviewed by qualified professionals before year end.
3. Separate residency from the purchase.Establishing Florida residency and buying a specific home are two different steps. One can come before the other.
4. Mark January 1 and March 1, 2027.Homestead generally requires ownership and permanent residence by January 1, and an application by March 1.
5. Underwrite a second home on its reassessed value.Use the post-sale assessed value in your carrying cost model, then let the 5% cap work for you from there.

None of this is a reason to rush a real estate decision. The right home, community and timing still come first. The deadline simply makes it worth having the conversation sooner.