No More Property Taxes for Florida Homeowners? We'll Find Out Next Week!

For millions of Florida homeowners, that possibility is getting closer to reality. On November 3, Florida voters will decide on Amendment 3, a proposed constitutional amendment that would substantially increase Florida's homestead exemption and potentially open the door to eliminating certain property taxes on primary residences altogether.

But there's a catch.

While homeowners could save thousands of dollars annually, local governments are warning that those savings could create major funding gaps for public safety, infrastructure, and community services.

So who's right?

If Amendment 3 receives at least 60% voter approval, the following changes would begin in 2027:

The amendment would also establish a process allowing counties and municipalities to increase the exemption further, potentially up to the full assessed value of qualifying homes for their respective non-school taxes. Special districts could do so with voter approval.

School district property taxes would remain, as would applicable non-ad valorem assessments.

Let's look at a hypothetical example.

Suppose you own a primary residence with a taxable assessed value before exemptions of $400,000.

Under the existing homestead structure, you may receive approximately $50,000 in exemptions against qualifying non-school property taxes. Under Amendment 3, that exemption would increase to $250,000 by 2028, assuming you meet the eligibility requirements.

That's an additional $200,000 in assessed value exempt from qualifying non-school taxes.

At an illustrative non-school millage rate of 10 mills, the potential savings could be approximately $2,000 per year, or $167 per month.

That's money that could stay in a your pocket instead of going toward property taxes.

Of course, actual savings would depend on the property's assessed value, local tax rates, existing exemptions, and eligibility. This example does not include school taxes or other assessments.

Supporters of property tax reform argue that Florida homeowners are dealing with a combination of rising insurance premiums, maintenance expenses, association fees, and other costs of living.

Even homeowners who have paid off their mortgages must continue paying property taxes. From that perspective, reducing property taxes could make homeownership more sustainable, particularly for retirees and households on fixed incomes.

There are several arguments worth considering.

A reduction in property taxes could create meaningful annual savings for qualifying homeowners. That money could be used for insurance, home repairs, retirement savings, or other household expenses.

Paying off a mortgage doesn't eliminate the ongoing cost of homeownership. Reducing property taxes could lower one of those recurring expenses.

Lower long-term ownership costs could make Florida appealing to some prospective homeowners. However, the proposed five-year waiting period for new residents complicates that argument.

Reducing the annual assessment-growth cap on qualifying non-homestead properties from 10% to 5% could help property owners estimate future expenses.

Would reducing property taxes actually make Florida housing more affordable? Not necessarily.

If lower ownership expenses increase demand for homes, some of the benefit could eventually be reflected in higher property prices. A buyer might save money on annual property taxes but face a higher purchase price or larger mortgage payment.

And while existing homeowners could receive significant benefits, renters wouldn't receive the homestead exemption directly.

That raises an important question:

The answer may depend on how home prices, rents, and local government finances respond.

Opponents aren't necessarily arguing that homeowners shouldn't receive tax relief. Their central concern is how Florida communities would replace the revenue that currently supports local services.

Property taxes help fund essential government operations, including law enforcement, fire protection, infrastructure maintenance, parks, and other community needs.

If that revenue decreases substantially, local governments may need to reduce spending, increase other fees or taxes where legally permitted, or find alternative funding. And these concerns aren't hypothetical.

According to the City of Palm Coast, estimates from the Florida League of Cities suggest Amendment 3 could reduce the city's property tax revenue by approximately:

Palm Coast currently budgets approximately $26.2 million combined for fire services and law enforcement in fiscal year 2026. A reduction in revenue of this magnitude could require difficult budget decisions.

The city has not announced specific service reductions and says it would evaluate its options if the amendment passes.

Source: City of Palm Coast, Proposed Property Tax Amendment, October 2026.

Does less tax revenue automatically mean fewer essential services? Not necessarily.

Governments routinely evaluate spending priorities, adjust budgets, and identify operational efficiencies.

Supporters of tax reform could reasonably ask whether local governments have fully explored cost-saving opportunities before assuming that lower tax collections must result in service reductions.

It's also fair to ask whether continued increases in property values and tax collections should always translate into larger government budgets.

However, there's a limit to that argument.

Some expenses are fixed, some services are legally required, and growing communities still need infrastructure and public safety.

The real question is whether local governments can absorb the reduction without shifting substantial costs elsewhere.

This is one of the more complicated parts of Amendment 3. Homeowners with qualifying homestead exemptions could see direct reductions in their tax bills.

Renters, however, would not receive those exemptions because they don't own the properties in which they live. Investment property owners could benefit from the proposed reduction in the annual assessment-growth cap.

Could that help keep rental prices down? Possibly, but there is no guarantee.

Rental rates are influenced by supply, demand, financing expenses, insurance, maintenance, and local market conditions. A landlord receiving property tax relief isn't automatically required to reduce rent.

At the same time, lower operating expenses could improve the financial feasibility of certain rental properties.

For real estate investors, the amendment could create opportunities for more predictable long-term expenses, but it wouldn't eliminate reassessment risks or guarantee improved cash flow.

There's another provision that prospective buyers should understand. Under the proposal, individuals who are not Florida residents on December 31, 2026, would generally receive the existing homestead exemption when they first qualify.

They would not become eligible for the expanded exemption until their fifth qualifying year, subject to constitutional limitations. That means an established Florida homeowner and a newly arriving homeowner could receive different exemption amounts on similarly assessed properties.

For people considering relocating to Florida, this could affect long-term housing expense projections. It also raises a policy question: Should established residents receive a larger property tax benefit than newly arriving residents?

Supporters may view the distinction as protecting existing Florida residents. Critics may see it as an unequal treatment of homeowners.

As mortgage professionals, this is where the conversation becomes particularly important. When buying a home in Florida, the seller's current property tax bill isn't necessarily what the buyer will pay.

A property may have an existing homestead exemption and an assessed value that is significantly lower than its market value. After a sale, the property may be reassessed under Florida law.

That's why mortgage payment estimates should consider potential reassessment, insurance costs, and applicable exemptions rather than simply relying on the taxes displayed in a real estate listing.

If Amendment 3 passes, these calculations could become even more important because eligibility and residency timing would affect the available exemptions. At Unreal Mortgage, our goal is to help buyers understand the full financial picture before making a decision.

There isn't a single answer that captures every homeowner's situation. The proposal presents several competing considerations:

Lower taxes for qualifying homeowners           Reduced local government revenue 

Lower ongoing homeownership expenses       Possible service reductions 

More money retained for property owners       Uncertainty about long-term housing market

Both deserve serious consideration.

On November 3, Florida voters will decide whether Amendment 3 becomes part of the state's Constitution.

A YES vote would approve the proposed changes. A NO vote would leave the existing constitutional framework in place.

The amendment needs at least 60% approval to pass.

Regardless of the outcome, one thing remains important: Understanding property taxes is essential to understanding the true cost of homeownership.

At Unreal Mortgage, we help Florida buyers, homeowners, and real estate investors navigate financing decisions with a clear understanding of the numbers.

Whether you're purchasing your first home, relocating to Florida, or investing in real estate, we're here to help you explore your options.

Sources

1. Florida Department of State — Official Amendment 3 Ballot Summary (https://constitutionalinitiatives.dos.fl.gov/Home/InitDetail?account=10&seqnum=110)

2. Florida Senate — CS/HJR 1-F (https://www.flsenate.gov/Session/Bill/2026F/HJR1/ByVersion)

3. City of Palm Coast — Proposed Property Tax Amendment

(https://www.palmcoast.gov/newsroom/home/details/proposed-property-tax-amendment)

4. Florida TaxWatch — 2026 Constitutional Amendments Taxpayer Guide

(https://floridataxwatch.org/the-florida-taxpayers-guide-for-the-2026-constitutional-amendments/)

5. Florida Policy Institute — Amendment 3 Fiscal Impacts

(https://www.floridapolicy.org/posts/florida-property-tax-amendment-ballot-language-summary)

6. League of Women Voters of Broward County — Amendment 3 FAQ

(https://www.lwvbroward.org/content.aspx?club_id=869563&item_id=140663&page_id=5)