Florida Homestead Exemption for New Buyers and Amendment 3

The property tax bill on a Central Florida home is not the bill the seller has been paying. That surprises many buyers, and it matters most if you are moving from a state where you know your tax bill by heart. Homestead rules decide what you owe, and this year a statewide vote could change them.

This article was written on September 27, 2026, before the November 3 vote. It explains current law first and then the proposed change.

How the homestead exemption works today

Florida lets you reduce the taxable value of the home you live in as your permanent residence. Orange County's government describes the current exemption as typically $50,000. It has two pieces, set out in section 196.031 of the Florida Statutes. The first $25,000 applies to all property taxes. A second exemption applies to assessed value between $50,000 and $75,000 but does not apply to school district taxes. Voters approved yearly inflation adjustments to that second exemption in 2024, so your county Property Appraiser publishes the exact current figure.

Two dates decide whether you qualify for a given year. You must own the home and live in it as your permanent residence on January 1, and you must apply with the county Property Appraiser by March 1. If you close in October 2026, your first exemption year is 2027: you would need to own the home on January 1, 2027 and file by March 1, 2027.

Save Our Homes limits the increase, not the bill

Once you have the exemption, section 193.155 caps how much the assessed value of your homestead can rise each year. The cap is 3 percent or the change in the consumer price index, whichever is lower. It limits assessed value only. Your bill can still change if local tax rates move or voters approve new levies.

Why the seller's bill is a poor guide

The cap resets when a home sells. Florida law reassesses the property at just value, which is roughly market value, as of January 1 of the year after the sale. A seller who has owned for fifteen years may be paying tax on a value far below your purchase price. Homes you do not live in, such as rentals and second homes, get no homestead exemption. Their assessed value has its own 10 percent annual cap, which also resets after a sale.

A rough estimate is assessed value times the millage rate, where one mill is $1 per $1,000 of value. For illustration only, a home assessed at $400,000 in an area with 17 total mills would carry $6,800 in tax before exemptions ($400,000 divided by 1,000, times 17). Those numbers are invented for the math. Exemptions do not apply equally to every levy, so use the county's estimator or ask Sergio to pull the real figures for a specific address.

What Amendment 3 would change

The Legislature placed a constitutional amendment on the November 3, 2026 ballot after votes of 30 to 9 in the Senate and 75 to 26 in the House. It needs at least 60 percent of the vote to pass. According to Orange County's summary and CBS Miami's coverage, it would:

• Create a new homestead exemption of $150,000 in 2027 and $250,000 in 2028, applying to all levies except school district taxes.
• Lower the annual assessment cap on non-homestead property, such as rentals and second homes, from 10 percent to 5 percent.
• Adjust the exemption amounts with inflation each year.
• Require five years of Florida residency to qualify for the new larger exemption. Coverage describes this as a requirement for new residents and first-time homeowners, so read the ballot text for the exact wording.

Orange County also estimates the change would reduce county property tax revenue by about $165 million in 2027 and $275 million in 2028, which is one reason local governments are watching the vote closely. This article does not take a side on how to vote.

What it means if you are moving to Florida

The residency detail is the part relocating buyers should watch. If the amendment passes as described, someone who moves here in 2026 or 2027 may not qualify for the larger exemption right away. How residency would be measured depends on the amendment and any law that implements it, so check the Property Appraiser's guidance after the vote.

1. Budget with today's rules. Ask your lender to estimate taxes from the purchase price, not from the seller's bill.
2. Look up the address on your county Property Appraiser site, such as Orange County's, to see assessed value and market value side by side.
3. Put January 1 and March 1 on your calendar for the first year you own the home.
4. Recheck the rules after November 3 before you make decisions that depend on a bigger exemption.

If you are relocating from New York, New Jersey, or the Tri-State, the relocation guide covers the rest of the move. Sergio can also run the numbers on a specific home if you book a call.

Sources

• Orange County government: Property Tax Amendment 3
• CBS Miami: Florida property tax cut plan heads to November ballot
• Florida Statutes, section 196.031 (homestead exemption)
• Florida Statutes, section 193.155 (homestead assessments)

This article is general information about Florida real estate and is not legal, tax, or lending advice. Rules, rates, and limits change, so confirm the details with your lender, a Florida attorney or tax professional, and your county Property Appraiser before you act on them.

Photo: Mjrmtg / Wikimedia Commons