Florida voters will decide on Amendment 3, a proposal that could significantly reduce property taxes for primary homeowners while changing assessment rules for second homes, rental properties and commercial real estate.
Florida voters will head to the polls on November 3, 2026, to decide whether to approve one of the state’s most consequential proposed changes to property taxation in recent years.
Known as Constitutional Amendment 3, the measure would expand tax exemptions for primary residences, limit annual assessment increases on investment properties and introduce new rules governing how local governments spend property tax revenue.
For Miami’s real estate market, where primary residences, luxury second homes and investment properties often coexist within the same neighborhoods, the implications could be substantial.
The amendment requires at least 60% voter approval to pass. If approved, it would take effect January 1, 2027.
How Much Could Miami Homeowners Save?
The most significant proposed change involves Florida’s homestead exemption, which reduces the taxable value of a qualifying primary residence.
Under Amendment 3, the exemption for property taxes other than school district taxes would increase to:
- $150,000 in 2027
- $250,000 in 2028
- Annual inflation adjustments beginning in 2029
The increased exemption could substantially reduce property tax bills for eligible homeowners, particularly those whose properties have sufficient taxable value to benefit from the full exemption.
However, the actual savings would depend on the property’s assessed value, applicable millage rates and local taxing jurisdictions.
Importantly, the proposal would not eliminate all property taxes. School district taxes would remain in place, meaning homeowners would continue paying the school-related portion of their property tax bills.
The amendment would also direct the Florida Legislature to establish a process allowing additional homestead exemptions that could eventually cover a property’s full assessed value for certain local taxes. Such reductions would require further implementation and would not occur automatically.
What Happens to Second Homes and Investment Properties?
While primary homeowners could receive larger exemptions, owners of second homes, rental properties and commercial real estate would see a different kind of change.
Amendment 3 would reduce the annual cap on increases in assessed value for non-homestead properties from 10% to 5%.
For Miami investors, this could offer greater predictability when planning long-term ownership costs.
A rental condominium in Brickell, a second home in Miami Beach or a commercial property in Wynwood could benefit from slower increases in assessed value, provided the property qualifies for the assessment limitation.
However, the lower cap would not guarantee a reduction in the property’s annual tax bill.
Property taxes are calculated using taxable values and millage rates established by local taxing authorities. If those rates increase, property owners could still face higher bills despite the lower assessment cap.
The assessment limitation also generally does not prevent a property’s assessed value from being reset following a qualifying change of ownership.
New Florida Residents Could Face a Five-Year Wait
Another important provision concerns people relocating to Florida.
Under the proposal, individuals who are not Florida residents as of December 31, 2026, would initially qualify for the existing homestead exemption when they establish an eligible primary residence.
They would become eligible for the expanded exemption beginning in their fifth year of homestead eligibility, subject to constitutional requirements.
Existing Florida residents would not face the same new-resident waiting period, although they would still need to meet applicable homestead eligibility requirements.
For buyers considering a permanent move to Miami, the distinction could affect their projected ownership costs over several years.
It could also make the timing of establishing Florida residency an additional consideration in real estate planning.
Miami-Dade County Warns of Significant Revenue Losses
The proposed tax relief comes with potential consequences for local government budgets.
According to Miami-Dade County’s official Amendment 3 analysis, the county estimates it could collect approximately $385.8 million less in annual property tax revenue beginning in October 2027, assuming current tax rates.
That estimated annual reduction would rise to approximately $696.7 million beginning in October 2028, when the larger homestead exemption takes effect.
These figures are county projections, not guaranteed outcomes. Actual revenue changes would depend on future property values, tax rates and implementation decisions.
Property taxes help support a wide range of Miami-Dade services, including fire rescue, emergency management, parks, libraries, transportation, infrastructure and programs for families and seniors.
The county has warned that reduced revenue could create pressure on the funding of these services.
The amendment would also limit the use of county and municipal property tax revenue to specified categories, including public safety, education, infrastructure, natural resources, debt service, employee retirement benefits and government operations.
Additional spending could still be authorized through specified local government approvals, unless prohibited by state law.
Could Property Tax Rates Rise to Offset the Savings?
One of the most important variables is how local governments would respond to the proposed changes.
Florida’s property tax system allows local governments to establish millage rates through a regulated budget process.
In June 2026, Governor Ron DeSantis signed Senate Bill 4-F, which revised the rules governing how local governments approve property tax rates.
Under the legislation, the rolled-back millage rate generally serves as the maximum rate that qualifying local governments can approve by a simple majority vote. Higher rates require additional approval thresholds.
The rolled-back rate is generally designed to produce approximately the same property tax revenue as the previous year from existing property, excluding certain adjustments.
If Amendment 3 reduces the taxable value of primary residences, future millage-rate decisions could affect how the financial benefits are distributed among different property owners.
For second-home owners, landlords and commercial investors who would not receive the expanded homestead exemption, this could be particularly significant.
A lower annual assessment cap may provide some protection against increasing taxable values, but it would not fully insulate properties from changes in local tax rates.
What About Renters?
Renters would not directly qualify for the expanded homestead exemption because it applies to eligible owner-occupied primary residences.
However, they could experience indirect effects.
Changes in landlords’ property tax expenses, local government fees and public service funding could influence housing costs over time.
The amendment also permits future legislative measures addressing renter relief, but it does not establish an automatic tax benefit for tenants.
What Miami Property Owners Should Know Before November 3
For primary homeowners, Amendment 3 could mean a substantially larger exemption and lower non-school property taxes.
For owners of second homes, rental properties and commercial real estate, the proposed 5% assessment cap could offer greater protection against future increases in assessed value.
For new Florida residents, the five-year eligibility provision could become an important factor when evaluating the cost of purchasing a primary residence.
And for Miami-Dade County, the proposal raises questions about how to balance property tax relief with the continued funding of public services.
Ultimately, the amendment’s impact would vary considerably depending on property type, residency status, assessed value and future local tax decisions.
On November 3, Florida voters will determine whether these proposed changes become part of the state’s property tax system.
Sources
- Florida Department of State — Constitutional Initiatives Database. Official text of Amendment 3, Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments.
https://constitutionalinitiatives.dos.fl.gov/Home/InitDetail?account=10&seqnum=110 - Miami-Dade County — Amendment 3 and Miami-Dade County Services. Official explanation of the proposed changes, projected revenue reductions and potential implications for county services.
https://www.miamidade.gov/global/government/mayor/amendment-three/home.page - The Florida Senate — CS/SB 4-F, Property Tax Administration. Legislative summary explaining changes to local government millage-rate approval requirements.
https://www.flsenate.gov/Committees/BillSummaries/2026F/html/4 - Executive Office of Governor Ron DeSantis — Governor Signs Legislation Protecting Taxpayers and Increasing Local Government Accountability. June 2026 announcement concerning SB 4-F.
https://flgov.com/eog/news/press/2026/governor-ron-desantis-signs-legislation-protecting-taxpayers-and-increasing-local - Florida Association of Counties — Property Tax Reform, HJR 1F Summary. Overview of the proposed amendment and its potential fiscal implications.
https://www.fl-counties.com/wp-content/uploads/2026/06/Property-Tax-Reform-Summary-.pdf
Florida voters will decide on Amendment 3, a proposal that could significantly reduce property taxes for primary homeowners while changing assessment rules for second homes, rental properties and commercial real estate.
Florida voters will head to the polls on November 3, 2026, to decide whether to approve one of the state’s most consequential proposed changes to property taxation in recent years.
Known as Constitutional Amendment 3, the measure would expand tax exemptions for primary residences, limit annual assessment increases on investment properties and introduce new rules governing how local governments spend property tax revenue.
For Miami’s real estate market, where primary residences, luxury second homes and investment properties often coexist within the same neighborhoods, the implications could be substantial.
The amendment requires at least 60% voter approval to pass. If approved, it would take effect January 1, 2027.
How Much Could Miami Homeowners Save?
The most significant proposed change involves Florida’s homestead exemption, which reduces the taxable value of a qualifying primary residence.
Under Amendment 3, the exemption for property taxes other than school district taxes would increase to:
- $150,000 in 2027
- $250,000 in 2028
- Annual inflation adjustments beginning in 2029
The increased exemption could substantially reduce property tax bills for eligible homeowners, particularly those whose properties have sufficient taxable value to benefit from the full exemption.
However, the actual savings would depend on the property’s assessed value, applicable millage rates and local taxing jurisdictions.
Importantly, the proposal would not eliminate all property taxes. School district taxes would remain in place, meaning homeowners would continue paying the school-related portion of their property tax bills.
The amendment would also direct the Florida Legislature to establish a process allowing additional homestead exemptions that could eventually cover a property’s full assessed value for certain local taxes. Such reductions would require further implementation and would not occur automatically.
What Happens to Second Homes and Investment Properties?
While primary homeowners could receive larger exemptions, owners of second homes, rental properties and commercial real estate would see a different kind of change.
Amendment 3 would reduce the annual cap on increases in assessed value for non-homestead properties from 10% to 5%.
For Miami investors, this could offer greater predictability when planning long-term ownership costs.
A rental condominium in Brickell, a second home in Miami Beach or a commercial property in Wynwood could benefit from slower increases in assessed value, provided the property qualifies for the assessment limitation.
However, the lower cap would not guarantee a reduction in the property’s annual tax bill.
Property taxes are calculated using taxable values and millage rates established by local taxing authorities. If those rates increase, property owners could still face higher bills despite the lower assessment cap.
The assessment limitation also generally does not prevent a property’s assessed value from being reset following a qualifying change of ownership.
New Florida Residents Could Face a Five-Year Wait
Another important provision concerns people relocating to Florida.
Under the proposal, individuals who are not Florida residents as of December 31, 2026, would initially qualify for the existing homestead exemption when they establish an eligible primary residence.
They would become eligible for the expanded exemption beginning in their fifth year of homestead eligibility, subject to constitutional requirements.
Existing Florida residents would not face the same new-resident waiting period, although they would still need to meet applicable homestead eligibility requirements.
For buyers considering a permanent move to Miami, the distinction could affect their projected ownership costs over several years.
It could also make the timing of establishing Florida residency an additional consideration in real estate planning.
Miami-Dade County Warns of Significant Revenue Losses
The proposed tax relief comes with potential consequences for local government budgets.
According to Miami-Dade County’s official Amendment 3 analysis, the county estimates it could collect approximately $385.8 million less in annual property tax revenue beginning in October 2027, assuming current tax rates.
That estim
