Florida Amendment 3 Passes: What the New Property Tax Changes Mean for Homeowners in 2027 and Beyond

Florida homeowners could soon see some of the most significant property tax savings in decades. On November 3, 2026, Florida voters approved Amendment 3, a major change to the state's property tax system that expands the homestead exemption and provides additional protections for second homes, investment properties, and other non-homestead real estate.

The amendment passed with approximately 62% of the vote, narrowly exceeding the 60% required to amend Florida's Constitution. The changes take effect January 1, 2027, with additional tax relief scheduled for 2028. 

For homeowners throughout Florida, this is important news. However, the benefits won't be the same for everyone, particularly those planning to relocate to Florida after 2026.

What's Changing Under Florida Amendment 3?

The biggest change is a substantial increase in Florida's homestead exemption, which reduces the assessed value of a primary residence subject to property taxes.

Under the new amendment, qualifying homeowners will receive the following exemptions for non-school property taxes:

• 2026 (Previous System): Up to $50,000 in total homestead exemptions, with the additional $25,000 applying only to non-school property taxes.

• 2027: The homestead exemption increases to $150,000 for non-school property taxes.

• 2028: The exemption increases further to $250,000 for non-school property taxes.

• 2029 & Beyond: The exemption will be adjusted annually for inflation.

The exemption for school district taxes remains $25,000. This means Amendment 3 doesn't eliminate property taxes, but it could significantly reduce the amount many Florida homeowners pay each year.

How Much Could Florida Homeowners Save?

The actual savings will depend on your property's assessed value, applicable exemptions, and local property tax rates. For example, consider a qualifying St. Johns County homeowner whose property has an assessed value of $400,000 before exemptions.

In 2026, the homeowner generally had a $50,000 total homestead exemption for non-school taxes. Under Amendment 3, that exemption increases to $150,000 in 2027 and $250,000 in 2028.

That's an additional $100,000 in exempt assessed value in 2027 and another $100,000 in 2028.

For illustration, at a hypothetical non-school tax rate of 10 mills (1%):

• 2027: Approximately $1,000 in additional annual savings compared with the previous exemption.

• 2028: Approximately $2,000 in additional annual savings compared with the previous exemption.

These figures are examples, not estimates of actual St. Johns County tax bills. Actual savings will vary, and non-ad valorem assessments, such as certain solid waste or special assessments, are not necessarily reduced by the homestead exemption.

Important Rules for People Moving to Florida

One of the most significant provisions of Amendment 3 involves people relocating to Florida.

Homeowners who establish permanent Florida residency by December 31, 2026, may qualify for the expanded exemption without the new five-year waiting period, provided they meet the applicable homestead requirements.

Those who become Florida residents after December 31, 2026, face different rules. New Florida residents will initially qualify for the existing homestead exemption structure, including up to $50,000 for non-school property taxes. They generally won't become eligible for the larger exemption until their fifth year of receiving a homestead exemption.

This is particularly relevant for buyers relocating from states such as New York, New Jersey, California, and other areas where property taxes and overall housing costs may be considerably higher.

If you're considering moving to St. Augustine or St. Johns County, the timing of your relocation and the establishment of your Florida residency could have meaningful long-term financial implications.

Simply purchasing a Florida property before December 31 doesn't automatically establish permanent residency or qualify the property for homestead benefits. Buyers should confirm eligibility with the property appraiser and a qualified tax professional.

Good News for Second Homes and Investment Properties

Amendment 3 also includes an important change for owners of second homes, rental properties, and investment real estate in Florida.

Previously, the assessed value of qualifying non-homestead properties could increase by as much as 10% annually for non-school property taxes. Beginning in 2027, that annual assessment-growth cap drops to 5%.

For investors and second-home owners in St. Augustine, this could provide greater predictability when budgeting for future property taxes.

It's important to understand that the 5% cap applies to increases in assessed value, not necessarily the actual property tax bill. Changes in millage rates, special assessments, or ownership can still affect what an owner pays. Additionally, a property may be reassessed following a sale or certain ownership changes.

What Does Amendment 3 Mean for St. Johns County?

While the potential savings for homeowners are substantial, Amendment 3 also raises questions about how local governments will fund public services.

Property taxes help support infrastructure, public safety, parks, and other essential services throughout St. Johns County.

With more property value becoming exempt from taxation, cities and counties across Florida may need to adjust budgets, reconsider spending priorities, or explore alternative revenue sources.

Supporters believe the amendment will make homeownership more affordable and encourage greater fiscal responsibility. Critics are concerned that reduced property tax revenue could affect local services and infrastructure investment.

How these changes ultimately affect St. Johns County remains to be seen.

What Should Florida Homeowners Do Next?

Although Amendment 3 has passed, homeowners shouldn't expect their current property tax bills to change immediately.

The amendment first applies to the 2027 property tax roll, and the Florida Department of Revenue is developing additional guidance regarding implementation, forms, and administrative procedures.

If you currently own a home in Florida, make sure your homestead exemption is properly established. If you're purchasing a home or planning to relocate, pay particular attention to residency requirements, filing deadlines, and how your property's assessed value may change following a purchase.

You can learn more through the Florida Department of Revenue's official Amendment 3 bulletin.

The Bottom Line

The passage of Florida Amendment 3 represents a major shift in the state's property tax system. With expanded homestead exemptions beginning in 2027, additional savings in 2028, and new protections for non-homestead properties, many Florida property owners stand to benefit.

For those buying, selling, or investing in St. Augustine and St. Johns County real estate, understanding these changes will be especially important as we head into 2027.

As a lifelong St. Augustine resident and local real estate broker, I'll continue following how these changes affect our housing market, property values, and the overall cost of homeownership. If you're considering a move or wondering how the new property tax rules might influence your real estate decisions, I'm always happy to be a resource.