Property tax amendments do not usually make for beach reading, but Amendment 3 is worth a few minutes of your sunscreen and coffee time this fall, whether you already own down here or you are still dreaming about it.
Quick Take: If approved by at least 60 percent of Florida voters on November 3, 2026, Amendment 3 would raise the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, and lower the non-homestead assessment growth cap from 10 percent to 5 percent. The actual effect on any individual tax bill would still depend on local millage rates, taxable values, and exemptions.
What Amendment 3 Actually Does
On November 3, 2026, Florida voters will decide Amendment 3, a legislatively referred constitutional amendment that would reshape parts of the state’s property tax system. If approved, its main provisions would take effect January 1, 2027.
The core provisions:
- The homestead exemption for non-school property taxes would rise to $150,000 in 2027 and $250,000 in 2028, adjusted for inflation starting in 2029
- The annual assessment increase cap on non-homestead properties, including second homes, rentals, and commercial real estate, would drop from 10 percent to 5 percent
- Counties and municipalities would be directed to focus property tax revenue on designated core categories, including public safety, education and schools, infrastructure, natural resources, debt service, employee retirement benefits, and operations and administration
- People who qualify as Florida residents and otherwise qualify for homestead by December 31, 2026 would be eligible for the expanded exemption starting in 2027; those establishing residency after that date would start with the standard exemption and become eligible for the expanded amount in their fifth year of homestead eligibility
The increased homestead exemption would apply strictly to non-school property taxes. The existing $25,000 school district exemption would remain unchanged.
How Property Taxes and Millage Rates Actually Work
A common misconception is that local governments pick a tax rate arbitrarily. In reality, Florida property tax rates are governed by the state’s statutory Truth in Millage process.
At the individual property level, the basic calculation is straightforward: taxable value multiplied by the applicable millage rate produces the ad valorem tax. Taxable value comes from a property’s assessed value after applicable exemptions and assessment limitations. Each local taxing authority, such as Monroe County, an individual municipality, or a special district, builds an annual budget reflecting its operating and infrastructure needs. The property appraiser certifies the total taxable value of all property in that jurisdiction. Taxing authorities then determine the millage rate needed to meet their budgeted needs, subject to public hearings and statutory millage limits.
If Amendment 3 passes, it would affect the taxable value side of the equation in two different ways. A larger homestead exemption would reduce taxable value on qualifying primary residences, while a lower non-homestead cap would limit how quickly assessed values on affected properties could grow. If a reduced tax base meets a budget that stays roughly the same, a taxing authority could face pressure to adjust its millage rate, revisit spending priorities, or look at other revenue sources. None of those outcomes is automatic or guaranteed.
The Florida Keys Twist
Most statewide coverage of Amendment 3 focuses on primary homeowners. Second homes, vacation rentals, and investment properties make up a meaningful share of the real estate market across Monroe County and the Florida Keys. Monroe County’s own tax roll data shows that non-homesteaded residential property accounts for 60.11 percent of the county’s total taxable value. For many owners here, the change to the non-homestead assessment cap is therefore an important part of the story. Homestead owners benefit directly from the larger exemption, while second home and investment property owners are affected by the change in how quickly assessed values can grow.
The potential effect on Monroe County’s revenue is less straightforward than a single statewide estimate might suggest. Different projections have produced different results because they rely on different assumptions and property value data. What actually happens will depend on the final tax roll, assessment changes, local budgets, and millage decisions.
Local Services and Budget Decisions
A smaller taxable base does not automatically force local budgets down. Taxing authorities retain the legal ability to set millage rates through the TRIM process, provided the required public notices and hearings take place.
In the Florida Keys, where property taxes help fund fire rescue, roads, and hurricane resiliency work, upcoming budget hearings are worth watching regardless of how the vote turns out.
What Buyers Should Keep in Mind
The December 31, 2026 Residency Date
For anyone planning a full-time move to the Florida Keys, qualifying as a Florida resident and for homestead by December 31, 2026 provides access to the expanded exemption starting in 2027. Establishing residency after that date means starting with the standard exemption and becoming eligible for the expanded amount in the fifth year of homestead eligibility. Purchasing a home before December 31 does not by itself confer the exemption. Florida residency and formal homestead qualification still apply.
Assessment Caps Are Not a Cap on the Total Bill
Second homes and vacation rentals do not qualify for the homestead exemption. The proposed 5 percent cap on non-homestead assessment growth offers more predictability on assessed value over time, but it limits growth in assessed value only. The final tax bill can still shift based on millage rate changes or local non-ad valorem assessments.
Proportional Impact Across Price Points
Because the exemption is a flat dollar amount, it provides a larger percentage reduction on moderately priced homes than on multi-million dollar properties. High-value properties still receive the same dollar savings, but the proportional effect on the overall bill is smaller.
What Amendment 3 Does Not Do
- It does not eliminate Florida property taxes. Owners still owe ad valorem taxes based on taxable value and millage rates
- It does not apply to school district taxes. The standard $25,000 school exemption remains unchanged
- It does not extend the homestead exemption to second homes or rental property
- It does not cap the total tax bill at 5 percent. The 5 percent limit applies only to annual assessment growth
- It does not guarantee that any individual property's tax bill will decrease
The Bottom Line
Whatever happens on November 3, the fundamentals of owning in the Florida Keys have not changed. Location, insurance costs, flood zone considerations, and lifestyle still drive most buying decisions here. Amendment 3 is one variable worth understanding alongside those other factors, not the one that should make or break a purchase decision.
Frequently Asked Questions
What is Amendment 3 and what would it change about Florida homestead exemptions?
Amendment 3 is a proposed Florida constitutional amendment on the November 3, 2026 ballot. If approved by at least 60 percent of voters, it would raise the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments beginning in 2029. It would also lower the annual assessment increase cap on non-homestead properties from 10 percent to 5 percent.
How is a property tax millage rate calculated in Florida?
Taxing authorities adopt annual budgets and establish millage rates through Florida's statutory Truth in Millage process. The property appraiser certifies the taxable value of all property in a jurisdiction, and each taxing authority sets a millage rate applied to that taxable value to generate required revenue.
Who benefits most from the increased homestead exemption under Amendment 3?
Because the exemption is a flat dollar amount rather than a percentage, it shields a larger share of value on lower and mid-priced homestead properties than on high-value homes. The actual savings depend on the property's taxable value and the local millage rates that apply.
When do I need to establish Florida residency to qualify for the higher exemption?
Under Amendment 3, people who qualify as Florida residents and otherwise qualify for homestead as of December 31, 2026 would be eligible for the higher exemption beginning in 2027. Those establishing Florida residency after that date would initially receive the standard exemption and become eligible for the expanded amount in their fifth year of homestead eligibility.
This article is provided for general informational purposes about a proposed constitutional amendment and Florida property tax mechanics. It is not legal, financial, or tax advice. Individual tax outcomes depend on the property, ownership status, taxable value, exemptions, and local taxing authority decisions.
Curious what is currently available across the island chain? Browse current listings or explore featured homes for sale throughout the Florida Keys.