Florida voters approved Amendment 3 on November 3, 2026 with about 62% of the vote, just over the 60% it needed. Most of the headlines are about the bigger homestead exemption. If you own a vacation rental or second home, though, the changes affect you differently.
Homestead Changes Don't Apply to Rentals
The amendment raises the homestead exemption for non-school taxes from $50,000 to $150,000 in 2027 and $250,000 in 2028, then adjusts it for inflation. It takes effect January 1, 2027. Homestead only applies to your permanent primary residence, though. A vacation rental or second home doesn't qualify.
People who are not Florida residents on December 31, 2026 get the existing exemption first. The larger one starts in their fifth year of exemption. If you're thinking of making Florida your primary home, talk to your county property appraiser about how that timing may apply to you.
The Change That Matters Most for Owners: A 5% Cap
For non-homestead property, including second homes, rentals and commercial property, the yearly cap on assessment increases drops from 10% to 5%. In a rising market, a lower cap may slow how fast your assessed value, and the taxes based on it, can climb. Millage rates and other factors still play a role, so actual tax bills may vary.
Watch for Local Fee and Tax Shifts
State economists project local governments may collect about $12 billion less in property taxes per year after 2028. Sheriffs, firefighters and local officials have warned of possible service cuts, and rural counties may feel it more. Some critics expect a shift onto renters and businesses, or new local fees and taxes to fill the gap. PolitiFact noted the amendment doesn't guarantee public-safety funding. For rental owners, that's a reason to keep an eye on county and city budget meetings, tourist development taxes and any new fees that may affect your operating costs.
Practical Tips for Owners
- ✓Budget conservatively. Don't count on savings until your county's numbers are clear.
- ✓Follow your local budget process. Changes to fees or rates may show up over the next few years.
- ✓Review your insurance. Property tax changes don't lower insurance costs. Rental homes have different coverage needs than primary homes, including liability for guests and loss of rental income.
Buying a New Home or Rental? Talk to Insuring the Coast
If you're buying a new home or an investment property on the Panhandle, Insuring the Coast may be able to help you compare homeowners, rental dwelling and flood coverage options. Call (850) 203-3643 or visit insuringthecoastfl.com to get a quote. Insuring the Coast serves the Panhandle of Florida.
This post is for general information only. It is not tax or legal advice. Contact your county property appraiser or a tax professional about your situation.
Sources
- WLRN: Florida approves Amendment 3 tax cut
- Florida Division of Elections: Amendment 3 initiative details
- PolitiFact: Amendment 3 and public safety funding
