November 4, 2026 | Southwest Florida Real Estate Update

Florida voters approved Amendment 3 on November 3, 2026, with approximately 62% of the vote. The amendment introduces significant changes to Florida's property tax system, including expanded homestead exemptions and new protections for owners of second homes and investment properties.

The changes take effect January 1, 2027, and could affect property owners throughout Southwest Florida.

A Larger Homestead Exemption for Florida Homeowners

One of the biggest changes is an increase in the homestead exemption for qualifying primary residences.

Under Amendment 3, the exemption for non-school property taxes will increase to:

• 2027: $150,000

• 2028: $250,000

• 2029 and beyond: Annual adjustments for inflation

This means a larger portion of a qualifying home's assessed value will be exempt from certain property taxes, potentially reducing annual tax bills.

Importantly, the expanded exemption does not apply to school property taxes. Existing Save Our Homes protections and portability benefits also remain unchanged.

What About Second Homes and Investment Properties?

Amendment 3 also benefits owners of non-homestead properties, including vacation homes, rental properties, and commercial real estate.

Beginning in 2027, the annual cap on assessment increases for these properties will decrease from 10% to 5%.

While this does not guarantee lower property taxes, it provides additional protection against significant increases in assessed property values from year to year.

Planning to Move to Florida? Here's What You Should Know.

For buyers considering relocating to Southwest Florida, there's an important distinction.

Homeowners who establish Florida residency by December 31, 2026, may qualify for the expanded homestead exemption beginning in 2027, provided they meet the applicable requirements.

Those who become Florida residents after that date can still qualify for the existing homestead exemption, but generally must wait until their fifth year of qualifying for homestead before receiving the expanded benefit, subject to federal constitutional requirements.

What Happens Next?

Although voters have approved Amendment 3, the Florida Legislature and local governments still need to finalize certain implementation details.

It's also important to remember that property tax bills depend on several factors, including assessed values, local tax rates, exemptions, and other assessments. Actual savings will vary by property.

The Bottom Line

Whether you own a primary residence, a seasonal home, or an investment property, Amendment 3 brings changes worth understanding.

For current homeowners, the expanded homestead exemption could mean lower property taxes. For owners of second homes and investment properties, the reduced assessment cap offers additional protection against future increases.

And for those considering a move to Southwest Florida, understanding the new residency requirements will be an important part of planning.

Real estate decisions involve more than the purchase price. Understanding the ongoing costs of homeownership is just as important.

As a Southwest Florida REALTOR®, I'm committed to helping buyers and sellers stay informed about changes that may affect their real estate decisions.