Florida’s Proposed Property Tax Amendment: Could Buying a Home in 2026 Instead of 2027 Make a Difference?
Florida voters will decide on November 3, 2026, whether to approve Amendment 3, a proposed constitutional amendment that could significantly change property taxation for Florida homeowners.
For buyers, sellers and real estate investors, one of the most interesting questions is not simply whether property taxes may decline.
It is this:
Could the timing of a home purchase—and establishing Florida residency before the end of 2026—make a meaningful difference in future property taxes?
The answer is: potentially, yes. But the details matter.
Amendment 3 requires approval by at least 60% of Florida voters to become part of the Florida Constitution. If approved, it would take effect on January 1, 2027.
What would Amendment 3 do?
Under the amendment currently scheduled for the November 3 ballot, Florida's homestead exemption for non-school property taxes would increase significantly.
The proposal would increase the exemption to:
Tax Year | Proposed Homestead Exemption for Non-School Taxes |
Current law | $50,000 |
2027 | $150,000 |
2028 | $250,000 |
Future years | Adjusted for inflation |
Importantly, the increased exemption would not apply to school district property taxes.
The amendment would also reduce the annual assessment-growth cap for non-homestead properties from 10% to 5%, affecting categories such as second homes, investment properties, rental properties and commercial real estate.
The potentially important distinction: Florida residents before December 31, 2026
This is where the proposed amendment becomes particularly interesting for prospective buyers.
Under the current ballot language, a person who was a Florida resident by December 31, 2026, and qualifies for homestead treatment, would be eligible for the increased homestead exemption beginning in 2027.
However, a person who had not maintained a permanent residence in Florida as of December 31, 2026 would initially receive the existing $50,000 non-school homestead exemption. The larger exemption would generally begin with the person's fifth year of exemption, subject to the constitutional and statutory rules governing implementation.
That creates a potentially significant difference between two otherwise identical buyers.
Example: Buyer A vs. Buyer B
Buyer A purchases a Florida home and establishes Florida permanent residency before December 31, 2026.
If Amendment 3 passes and all applicable requirements are met, Buyer A could potentially benefit from:
A $150,000 exemption for non-school taxes in 2027.
A $250,000 exemption for non-school taxes beginning in 2028.
Buyer B moves to Florida and establishes permanent residency in 2027.
Under the proposal, Buyer B would initially remain subject to the existing exemption level and would generally not receive the larger exemption until the fifth year of exemption.
That distinction could affect the carrying costs of a home for several years.
So, would it be better to buy in 2026 or wait until 2027?
There is an important distinction between buying a property and establishing Florida residency and qualifying for homestead treatment.
A buyer should not assume that simply signing a contract or closing before December 31, 2026 automatically guarantees eligibility for the increased exemption. The relevant constitutional language focuses on whether a person had maintained a permanent residence in Florida as of December 31, 2026, and homestead exemptions are also subject to applicable qualification and filing rules.
Therefore, for someone who is genuinely planning to make Florida their permanent residence, the timing of establishing residency could potentially be more important than the difference between closing on December 30 and January 2.
A second-home buyer who continues to maintain permanent residency in another state would not receive the homestead exemption merely by owning a Florida property.
How much could a homeowner save?
The actual savings would depend on several factors:
The property's assessed value
The applicable County, municipal and special district millage rates
Whether the property qualifies for homestead treatment
Whether the buyer was a Florida resident by December 31, 2026
Future millage rates
Any future changes implemented by the Legislature or local governments
For example, the difference between a $50,000 and a $250,000 exemption is $200,000 of additional assessed value that would potentially be exempt from non-school property taxes.
The actual dollar savings would depend on the applicable non-school millage rates.
It is also important to remember that school taxes would still apply, except for the existing school-tax homestead exemption.
What could this mean for the Southwest Florida real estate market?
If Amendment 3 passes, the impact on the local real estate market could be felt differently depending on the type of property.
Primary residences could become more attractive
A reduction in annual property taxes could lower the ongoing cost of owning a primary residence.
For buyers comparing Florida with other states, lower carrying costs could become another factor in the decision to relocate or establish permanent residency here.
For local homeowners, lower taxes could improve affordability by reducing one component of the annual cost of ownership.
The timing of relocation could become a marketing issue
The December 31, 2026 residency distinction could create an unusual situation during the final months of 2026.
People who are already considering relocating to Florida may pay closer attention to whether they can establish permanent residency before the deadline.
This could potentially create additional urgency for some primary-residence buyers during the fourth quarter of 2026. That is not a prediction of market performance, but it is a factor buyers and sellers may consider if the amendment passes.
Second homes and investment properties would be affected differently
The increased homestead exemption is designed for qualifying permanent residences.
Therefore, many Southwest Florida markets with a significant number of:
seasonal residences,
vacation homes,
investment properties, and
rental properties
would not receive the same homestead benefit.
However, the amendment would reduce the annual assessment-growth cap for non-homestead property from 10% to 5%, which could provide a different form of tax protection for those properties over time.
This distinction could be particularly relevant in markets such as Naples, Marco Island and Bonita Springs, where primary residences, seasonal homes and investment properties often compete for similar properties.
Could lower property taxes increase home prices?
That is one of the more interesting questions for the real estate market.
If the cost of owning a primary residence declines, some buyers may be able to allocate more of their budget toward the purchase price.
For example, if a buyer expects to save several thousand dollars per year in property taxes, that reduced annual expense could affect the buyer's overall affordability calculation.
However, the actual effect on prices would depend on many other factors, including:
mortgage interest rates,
insurance costs,
housing inventory,
local employment and population growth,
buyer demand,
economic conditions, and
whether sellers and buyers adjust their expectations based on the tax savings.
A property-tax reduction does not automatically translate into higher home prices. The effect would likely vary by market and property type.
The other side of the equation: local government revenue
A larger homestead exemption would reduce the taxable value available to counties, municipalities and certain other local taxing authorities.
State fiscal analyses have projected substantial reductions in non-school local property-tax revenue if the amendment is approved. The precise effect on any individual county or municipality would depend on its tax base and future decisions by local governments.
This raises another question for homeowners: if the taxable base declines, will local governments adjust millage rates, fees or other revenue sources?
That remains uncertain and would depend on future budget decisions and implementation.
Therefore, homeowners should be cautious about assuming that an increase in the homestead exemption will necessarily result in a specific, permanent reduction in their total property-tax bill.
A particularly important point for 2026 buyers
For someone who is already planning to make Florida their permanent residence, the period before December 31, 2026 may deserve careful attention.
The proposed amendment creates a distinction between people who had established Florida permanent residency by that date and those who establish residency afterward.
That means a prospective buyer considering a move from another state—or from another country—to Florida may want to evaluate the timing of:
Purchasing a home.
Establishing Florida as a permanent residence.
Qualifying for the Florida homestead exemption.
Meeting all applicable residency and filing requirements.
Because the rules can depend on an individual's circumstances, buyers should verify their eligibility with the appropriate Property Appraiser and obtain legal or tax advice when necessary.
What should buyers and sellers do now?
At this point, Amendment 3 is not yet law. Florida voters will decide the measure on November 3, 2026, and at least 60% approval is required.
For buyers, the amendment is nevertheless something worth following—especially for anyone considering making Southwest Florida their permanent home.
For sellers, the proposal could become another conversation point with prospective primary-residence buyers, particularly if a transaction involves a buyer relocating to Florida before the end of 2026.
The most important takeaway is simple:
For a buyer who intends to establish Florida as a permanent residence, waiting until 2027 could potentially have different property-tax consequences than establishing residency before the end of 2026—if Amendment 3 is approved and the buyer otherwise qualifies.
The exact financial impact will depend on the property's assessed value, local millage rates and the buyer's individual eligibility.
Final thought
Property taxes are becoming an increasingly important part of the overall cost of owning real estate in Southwest Florida—along with insurance, HOA fees and financing costs.
The proposed constitutional amendment adds another variable to the decision-making process.
Whether you are considering buying a permanent residence, relocating to Florida, purchasing a second home or selling property in Naples, Bonita Springs or Marco Island, understanding how ownership timing, residency and homestead status may affect future carrying costs is becoming increasingly important.
At CoastalHaus Realty, we help buyers and sellers look beyond the purchase price and understand the factors that can affect the long-term cost and value of owning property in Southwest Florida.
Stefan Bolsen, JD, Broker | Owner, info@bolsenteam.com
This article is for general informational purposes only and does not constitute
legal or tax advice. Amendment 3 is subject to voter approval, and its implementation may involve additional legislation and administrative procedures. Buyers should consult the appropriate Property Appraiser, attorney or tax professional regarding their individual circumstances.
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