Florida’s Homestead Tax Amendment Could Cut Homeowners’ Bills but Raise Other Costs

Florida voters will decide on Amendment 3, which would boost the homestead exemption from the current $50,000 to $150,000 in 2027 and $250,000 in 2028, reducing property taxes for primary-residence owners. New homeowners would receive a smaller exemption that grows after five years, while renters receive no direct relief, meaning landlords could see higher tax bills. The amendment also caps annual assessment increases for rental, commercial and second-home properties at 5% instead of 10%, but leaves local spending authority broadly defined.

State analysts estimate the change would cut property-tax revenue by roughly $11.8 billion annually, raising fears of budget shortfalls for essential services such as police, fire and schools. Localities might offset losses by raising millage rates on non-homestead properties, imposing special assessments, or increasing sales and tourism taxes. The Florida Fire Chiefs’ Association has voiced opposition, warning of uncertainty for emergency-service funding. Ultimately, voters must weigh lower homeowner taxes against potential hikes in other taxes or cuts to public services on Nov. 3.