Florida Amendment 3, approved by voters on November 3, 2026, will reduce non-school property taxes on primary residences across Miami-Dade County and the rest of the state starting January 1, 2027. The measure raises the homestead exemption to $150,000 in 2027 and $250,000 in 2028, lowers the annual assessment cap on second homes and investment properties from 10% to 5%, and phases in the larger benefit for people who become Florida residents after December 31, 2026.
Florida Amendment 3 at a Glance
- Approved: November 3, 2026, with about 62% of the statewide vote (60% was required)
- Effective date: January 1, 2027
- Homestead exemption, non-school taxes: $150,000 in 2027 and $250,000 in 2028, adjusted for inflation from 2029
- Exemption before the amendment: up to $51,411 for 2026
- School taxes: existing $25,000 exemption unchanged
- Non-homestead assessment cap: lowered from 10% to 5% a year for non-school taxes, beginning in 2027
- New residents after December 31, 2026: existing exemption first, larger exemption from the fifth year of homestead
- First tax bills affected: November 2027
How Much Is the New Homestead Exemption Under Amendment 3?
For a qualifying primary residence, the exemption from non-school property taxes rises to $150,000 of assessed value in 2027 and $250,000 in 2028. Beginning in 2029, the amount adjusts each year for inflation.
Non-school taxes are the county, city and special district levies on a Miami-Dade tax bill. According to Florida TaxWatch, the homestead exemption applied to those levies was $51,411 for 2026, so the 2028 figure is close to five times the current benefit.
The exemption comes off a home's assessed value, not its market value. For long-time Miami owners protected by Save Our Homes, assessed value can sit far below what the home would sell for today. Florida Realtors notes that Save Our Homes protections and portability remain in place.
Do Homeowners Still Pay School Taxes?
Yes. The larger exemption does not apply to school district levies. Homeowners keep the existing $25,000 exemption on school taxes and continue to pay them on the rest of their assessed value, which is why Amendment 3 lowers a Miami property tax bill without eliminating it.
Who Qualifies for the Higher Homestead Exemption?
- Florida residents as of December 31, 2026 can receive the increased exemption once they meet the ownership, residency and homestead requirements.
- People who become Florida residents after December 31, 2026 receive the existing exemption when they first qualify. The larger exemption begins in their fifth year of homestead exemption, to the extent permitted by the U.S. Constitution.
Owning a condo in Brickell or a house in Coral Gables does not, on its own, make someone a Florida resident or qualify the property as a homestead. Under existing rules, an owner generally must own the home and make it a permanent residence as of January 1, then apply with the Miami-Dade Property Appraiser by March 1 for that tax year.
How Does Amendment 3 Affect Second Homes and Investment Properties in Miami?
Owners of non-homestead property do not receive the bigger exemption, but they do get a tighter limit on assessment growth. Starting in 2027, the assessed value of second homes, rental properties and commercial real estate can rise no more than 5% a year for non-school taxes, down from 10%.
That is meaningful in markets such as Miami Beach, Brickell and Sunny Isles Beach, where second-home owners and investors are part of the buyer mix. The cap applies to assessed value, not the tax bill itself. Millage rates can still change, and school taxes fall outside the new 5% limit.
Can Miami-Dade or Local Cities Raise Exemptions Further?
Potentially. Amendment 3 requires the Florida Legislature to create a process for counties and municipalities to increase homestead exemptions on their own levies, potentially up to a property's full assessed value. Certain special districts may also offer additional exemptions, subject to voter approval.
Florida Realtors notes that the Legislature and local governments will handle implementation details, and local officials, including in Miami-Dade, have raised questions about how lower revenue will affect public services. Miami-Dade Property Appraiser Tomás Regalado has said the change will benefit more than half a million homesteads in the county.
When Will Miami Homeowners See Lower Property Tax Bills?
The amendment takes effect January 1, 2027. The $150,000 exemption applies to the 2027 tax year and the $250,000 exemption to 2028, so the first savings will appear on property tax bills issued in November 2027, with a larger reduction a year later.
What It Means for Miami Real Estate Buyers and Sellers
Current homeowners. For full-time residents, Amendment 3 lowers the cost of staying in their Miami homes, and the effect grows in 2028. Because the exemption is a fixed dollar amount, the savings make up a larger share of the bill on homes with moderate assessed values. Owners of high-value waterfront homes on Biscayne Bay will also pay less, though as a smaller share of the total.
Buyers relocating to Miami. The December 31, 2026 cutoff makes timing a real consideration for anyone planning a move from another state. Those who establish residency after that date start with the existing exemption, so their budgets should reflect current-law taxes until the fifth homestead year. A Florida tax advisor or attorney can address individual residency questions.
Second-home owners and investors. The 5% cap brings more predictability to assessments on pied-à-terre condos and rental units. It is not a cap on the bill, so local tax rates still need to be part of any ownership cost analysis.
Sellers. Lower ongoing taxes on primary residences may add to the appeal of Miami homes for buyers who plan to live in them full time. How the change affects prices will depend on many factors, and no one can promise appreciation.
Frequently Asked Questions About Florida Amendment 3
What is Florida Amendment 3?
Florida Amendment 3 is a constitutional amendment approved on November 3, 2026, that raises the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028 and lowers the non-homestead assessment cap from 10% to 5%.
When does Amendment 3 take effect?
Amendment 3 takes effect January 1, 2027. The first changes will appear on property tax bills issued in November 2027.
Does Amendment 3 lower school property taxes in Miami?
No. Amendment 3 does not change school district taxes, and the existing $25,000 school tax exemption stays in place for Miami homeowners.
Do new Florida residents get the full Amendment 3 exemption?
People who become Florida residents after December 31, 2026, receive the existing homestead exemption first. Under Amendment 3, the larger exemption begins in their fifth year of homestead exemption, to the extent permitted by the U.S. Constitution.
Does Amendment 3 help owners of Miami second homes and rentals?
Amendment 3 does not give second homes or rentals the larger homestead exemption. It does limit annual increases in their assessed value for non-school taxes to 5%, down from 10%, beginning in 2027.
Have questions about how Amendment 3 could affect buying or selling a home in Miami? Contact Anna Sherrill, Top Producer at ONE Sotheby's International Realty, at 786.853.8484 or [email protected].
Sources: Florida Realtors, "Florida voters approve Amendment 3"; Florida TaxWatch, "Florida Property Tax Resource Center"; Bay News 9; Kaufman Rossin; Local 10.
Figures are as reported by the sources above and may change. This post is for informational purposes only.