Florida Amendment 3 Explained: What the 2026 Property Tax Amendment Could Mean for Gulf Coast Homeowners

If you own property on the Florida Gulf Coast — Perdido Key, Pensacola, or anywhere in the state — or you're planning a move here, there's a property tax measure on the November 3, 2026 ballot worth understanding. It's called Amendment 3, and this is a plain, stance-free walkthrough of what it actually says, what it would change, and the one detail out-of-state buyers tend to miss.

What Amendment 3 Is

Amendment 3 is a proposed amendment to the Florida Constitution that would change how property taxes are calculated for primary homeowners and for non-homestead properties like rentals and commercial buildings. It grew out of House Joint Resolution 1-F, approved by the Florida Legislature in 2026. Because it amends the state constitution, it does not need the governor's signature — but it does need at least 60% of voters to approve it. If it passes, it takes effect January 1, 2027.

The Homestead Exemption Change

The core of Amendment 3 is a larger homestead exemption for the non-school portion of your property taxes. The homestead exemption lowers the assessed value your taxes are figured on for your permanent primary residence.

Right now, the homestead exemption that applies to non-school levies is about $51,411. Amendment 3 would raise it to $150,000 of assessed value in 2027 and $250,000 in 2028, then adjust it for inflation beginning in 2029.

Two points that get misunderstood often: First, a $250,000 exemption does not mean you save $250,000 — the exemption applies to your home's assessed value, not directly to your tax bill. More of your home's value is simply shielded from non-school property taxes. Second, this does not touch school property taxes. School funding is kept out of the cut, so you would continue paying school taxes as you do now.

How Much Could You Save

Because millage rates vary from county to county and city to city, your savings depend on where you live. Florida TaxWatch publishes a free calculator in its Property Tax Resource Center where you can enter your own total non-school millage rate and see an estimate.

Florida TaxWatch offers a rough way to estimate it yourself: add up all of your non-school millage rates from your tax bill, then multiply by $98.59 for 2027 and $198.59 for 2028. At the statewide average non-school rate of 10.5 mills, that works out to roughly $1,035 in 2027 and $2,085 in 2028. If a home's assessed value is below the new exemption amount, the owner could owe zero county, city, and special-district property taxes — while still owing school taxes.

The 5% Cap on Non-Homestead Properties

Amendment 3 also addresses non-homestead properties — think rentals, second homes that aren't your primary residence, and commercial buildings. Current rules let the assessed value of those properties rise up to 10% per year for tax purposes. Amendment 3 would lower that annual cap to 5%, excluding school district taxes. For owners of rental and commercial property, that means more predictable year-over-year assessment increases.

The Five-Year Rule for New Residents

This is the detail that matters most if you're moving to Florida from another state. Under Amendment 3, someone who is not a Florida resident on December 31, 2026 would first receive the existing homestead exemption once they qualify. The larger, increased exemption would then begin with the fifth year of claiming the exemption, to the extent allowed by the U.S. Constitution.

Here's the flip side of that same rule: people who already hold a Florida homestead exemption would not be subject to the waiting period. So the timing of when you establish Florida residency and homestead can affect when you see the larger exemption.

What Supporters and Analysts Are Saying

Supporters, including Florida Realtor®s®, frame Amendment 3 as property tax relief that lowers the ongoing cost of owning a home and could ease some pressure on rents through the lower non-homestead cap.

At the same time, independent analyses have focused on the effect on local government revenue. Groups such as the Florida Policy Institute have published calculators estimating how much funding individual cities and counties could lose, and former state Senator Jeff Brandes has publicly raised concerns about the impact on local services. The amendment itself would require counties and municipalities to prioritize remaining property tax revenue for specific functions — public safety, schools, infrastructure, natural resources, bond debt, local-government retirement benefits, and operations. The practical budget effect would vary community by community.

The Bottom Line

Amendment 3 goes before Florida voters on November 3, 2026, needs 60% approval, and would take effect January 1, 2027 if it passes. For a primary homeowner, it would raise the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028. For non-homestead property, it would cut the annual assessment cap from 10% to 5%. And for anyone relocating from out of state, the larger exemption starts in year five of claiming it.

I share this as information, not a recommendation on how to vote, and not as tax advice. For how any of this would apply to your specific property and situation, talk with a licensed tax professional. If you're weighing a move to the Florida Gulf Coast and want to understand how ownership costs work here, that's the part I can help with.

Katie Ragland, Realtor® · Real Broker, LLC. Licensed in Alabama and Florida. Call or text, or find everything at linktr.ee/katieraglandrealtor®.