Florida voters have approved Amendment 3, a constitutional amendment that will bring significant changes to the state's property tax system beginning January 1, 2027. The measure passed with approximately 62% of the statewide vote, exceeding the 60% approval required for constitutional amendments in Florida.
For homeowners, the amendment means a substantial increase in the homestead exemption on certain property taxes. For prospective buyers, particularly those relocating to Southwest Florida, the changes introduce new considerations about residency, homestead eligibility and future property tax expenses.
Here's a closer look at what Amendment 3 means for homeowners and anyone considering purchasing property in Naples and the surrounding communities.
What Is Changing Under Amendment 3?
The primary change is an increase in Florida's homestead exemption for non-school property taxes. The exemption will increase in two stages:
January 1, 2027: The exemption increases to $150,000.
January 1, 2028: The exemption increases to $250,000.
Beginning in 2029: The exemption amount will be adjusted annually for inflation.
Previously, qualifying homeowners could receive up to $50,000 in homestead exemptions, with different portions applying to different categories of property taxes.
Under Amendment 3, the expanded exemption applies to non-school property taxes, which help fund local services such as county and municipal operations, infrastructure, and public safety.
An important distinction: School district property taxes are not included in the expanded exemption. Homeowners will continue paying school taxes under the existing exemption rules.
What Does This Mean for Current Florida Homeowners?
For homeowners who already qualify for Florida's homestead exemption, Amendment 3 could provide meaningful property tax relief.
Beginning in 2027, a larger portion of the assessed value of an eligible primary residence will be exempt from non-school property taxes. That exemption increases again in 2028.
For example, consider a home with an assessed value of $500,000. Under the expanded $250,000 exemption in 2028, the non-school portion of the property tax calculation could be based on a substantially lower taxable value.
The actual savings will vary depending on the property's assessed value, applicable tax rates and other factors.
Another important point for existing homeowners is that Amendment 3 does not eliminate Florida's Save Our Homes benefit. The existing protection limiting annual increases in the assessed value of a qualifying homestead property to 3% or the rate of inflation, whichever is lower, remains in place. Portability provisions also remain unchanged.
What Should Home Buyers Know?
For buyers considering a move to Naples or elsewhere in Florida, one of the most important details of Amendment 3 involves residency.
The amendment establishes a five-year waiting period for certain new Florida residents before they can receive the increased homestead exemption.
Here's how it works:
Individuals who are Florida residents by December 31, 2026, may qualify for the expanded exemption once they meet the applicable homestead requirements.
Individuals who are not Florida residents by December 31, 2026, will initially receive the existing homestead exemption when they qualify.
The increased exemption becomes available beginning in their fifth year of qualifying for a homestead exemption, subject to applicable constitutional requirements.
This is particularly relevant for buyers relocating from another state. Timing your move and establishing Florida residency may affect when you become eligible for the full tax benefit.
If you are considering purchasing a home in Southwest Florida, it is important to understand how your intended use of the property and residency status may affect your future property taxes.
What About Second Homes, Vacation Properties and Investment Real Estate?
Amendment 3 also changes the way certain non-homestead properties are assessed.
Previously, annual increases in assessed value for qualifying non-homestead properties were generally capped at 10%. Under Amendment 3, that cap will decrease to 5% for non-school property taxes.
This change affects properties such as:
Second homes and vacation properties
Rental and investment properties
Commercial real estate
These properties do not qualify for the expanded homestead exemption simply because they are owned by a Florida resident. The homestead exemption is intended for a qualifying primary residence.
However, the lower assessment cap may provide additional protection against rapid increases in assessed value for qualifying non-homestead properties.
It is important to remember that this is a limit on annual assessment increases, not a guarantee that property tax bills will decrease. A property's assessed value may also be affected by a change in ownership and other applicable assessment rules.
Could Amendment 3 Affect Local Communities?
While the amendment is designed to provide property tax relief for qualifying homeowners, it also changes the amount of property tax revenue available to local governments.
Property taxes help fund many of the services residents rely on, including fire and emergency services, law enforcement, road maintenance, drainage, stormwater management, parks and other public infrastructure.
Reducing the taxable value of homesteaded properties means local governments may need to evaluate their budgets, tax rates and other revenue sources as the changes take effect.
For growing communities like Naples and Collier County, the long-term effects will depend on how local governments implement the changes and manage their available resources.
This is an important consideration for both current residents and buyers evaluating a community, particularly when comparing property taxes, local services and overall ownership costs.
When Will Homeowners See the Changes?
Amendment 3 takes effect January 1, 2027, and will not change 2026 property tax bills.
Homeowners can expect the new exemption amounts to begin appearing in the 2027 property tax assessment process. Proposed property tax notices are generally mailed in August, with final tax bills issued later in the year.
Homeowners should continue to follow guidance from their county property appraiser regarding eligibility and any application requirements.
If you are purchasing a home, remember that property taxes shown on a seller's current tax bill may not reflect what you will pay after a change in ownership. It is always important to review the property's assessed value, applicable exemptions and estimated taxes when evaluating a purchase.
What Does This Mean for the Southwest Florida Real Estate Market?
Amendment 3 introduces another important factor into Florida's homeownership landscape.
For existing homeowners, the expanded homestead exemption may help reduce certain property tax expenses. For buyers relocating to Florida, understanding the residency requirements and timing of eligibility will be an important part of financial planning. Owners of second homes and investment properties will also want to understand how the reduced assessment cap applies to their real estate holdings.
As these changes begin taking effect, staying informed about property taxes and ownership costs will be increasingly important.
Whether you are considering selling your current home, purchasing a primary residence or exploring a second home in Naples, having a clear understanding of the local real estate market is essential.
Have questions about buying or selling a home in Naples?
Gabriele H. Vretta, PA, Broker Associate with John R. Wood Christie’s International Real Estate, brings more than 20 years of Naples real estate experience and local market knowledge to help buyers and sellers make informed real estate decisions.
Contact Gabriele to discuss your real estate plans and learn more about the Naples market.
Please note: This article is intended for general informational purposes and is not tax or legal advice. Individual property tax savings and eligibility will depend on applicable laws, property assessments, residency status and local tax rates. Consult your county property appraiser or a qualified tax professional for guidance regarding your specific circumstances.
