Property taxes in Florida will drop for long-term homeowners starting on January 1, 2027, under a constitutional amendment approved by voters.
Voters backed Amendment 3 with roughly 62 percent support on November 3, clearing the 60 percent threshold needed to change the state constitution, Newsweek reported. The measure changes how local governments collect property tax revenue while elevating Governor-elect Byron Donalds to office.
Donalds defeated Democrat David Jolly with 50 percent to 48.7 percent to become Florida’s first Black governor.
Amendment 3 Raises Homestead Tax Exemptions
Amendment 3 raises the homestead tax exemption for non-school district property taxes to $150,000 in 2027. The exemption increases to $250,000 in 2028 and ties to inflation beginning in 2029.
The constitutional change favors long-term residents. People who move to the state after December 31, 2026, receive an exemption capped at $50,000 until they complete five years of residency.
For commercial real estate, rental units, and second homes, the measure lowers the cap on annual assessed value increases from 10 percent to 5 percent for non-school taxes. Counties and municipalities must direct their remaining property tax revenue toward public safety, education, infrastructure, flood control, local bonds, employee retirement benefits, and government operations.
Property Tax Overhaul May Strip Local Governments of Revenue
Florida’s Revenue Estimating Conference projected that the property tax overhaul will strip local governments of roughly $12 billion annually by fiscal year 2031–32. Orange County estimates alone show a $275 million revenue drop by 2028.
Communities will look to make up shortfalls by cutting services or raising other fees, according to Sadaf Knight, CEO of the Florida Policy Institute.
“Amendment 3’s drastic reduction in property tax revenue means that communities will be looking for ways to make up the gap—either by cutting or eliminating services or raising fees and other assessments to maintain them,” Knight told Newsweek. “a cost shift that does nothing to provide real relief to Floridians—costs will be passed onto working Floridians, whether you're a homeowner or a renter,” Sadaf Knight, CEO of the Florida Policy Institute, told Newsweek.
Other analysts point out that the impact will hit regions differently based on local tax bases.
“The loss in revenues will vary greatly across communities in Florida due to the differences in the composition of their tax bases,” Shelton Weeks, a professor in the Department of Economics & Finance at Florida Gulf Coast University, told Newsweek.
Rural areas with lower property values face steeper strains than coastal regions with high-value homes, according to Weeks. Abigail Hall, an economics professor at the University of Tampa, warned Newsweek that renters and younger residents could face higher housing costs and reduced services as local leaders adjust.
Implementation Timeline for Taxpayers
Homeowners will see the initial tax changes reflected in proposed notices issued in August 2027, followed by actual bills in November 2027, Hall told Newsweek. Actual savings depend on a property’s assessed value, homestead status, and local tax rates.
Donalds supported the amendment on the campaign trail, but he indicated in August that the state’s tax overhaul won’t stop there, according to Florida Politics.
“Whether it passes or whether it doesn’t, next year in the Taxation and Budget Reform Commission, we are going to bring proposals for a full and complete reform of property taxes and fees in Florida,” Donalds said.
“We want to make sure that seniors on fixed income are not being taxed out of our state, and we want to make sure that young families, working families have the opportunity to build the Florida dream for themselves here in Florida. And we're going to start that work next year,” Governor-elect Byron Donalds added.
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