In Florida, a home's assessed value generally resets to market value the January 1 after a sale, so a buyer's property taxes are often higher than the seller's. If the home is your permanent residence on January 1, file for homestead by March 1: in 2026 the exemption totals $51,411, and the Save Our Homes cap then limits annual assessment increases to 3% or CPI, whichever is lower. Amendment 3 on the November 3, 2026 ballot would raise the non-school homestead exemption to up to $150,000 in 2027 and $250,000 in 2028 if 60% of voters approve it.
1. The seller's tax bill is not your tax bill
This is the most common surprise for Florida buyers. A long-time homesteaded owner's assessed value has been held down by the Save Our Homes cap. After a sale, the assessed value generally resets to market value on the next January 1 — so the buyer's taxes can be far higher than the bill shown in the listing.
When I estimate a payment, I use the purchase price, the current millage rate for that specific address (including any CDD or other non-ad valorem charges) and your expected exemptions — not the seller's bill.
2. How the homestead exemption works today
If you own the home and it is your permanent residence on January 1, you can apply to the county property appraiser for the homestead exemption. The deadline is March 1.
| Piece | 2026 amount | Applies to |
|---|---|---|
| First exemption | $25,000 | All property taxes, including school taxes |
| Additional exemption | $26,411 (indexed to inflation since 2025) | Non-school taxes, on assessed value above $50,000 |
| Total | $51,411 |
The additional exemption was a flat $25,000 until voters approved Amendment 5 in 2024, which ties it to the Consumer Price Index. It was $50,722 in total for 2025.
3. Save Our Homes and portability
Once a home is homesteaded, its assessed value can rise by no more than 3% or the change in CPI each year, whichever is lower. Over time this creates a gap between market value and assessed value — the "Save Our Homes benefit."
Portability lets you carry up to $500,000 of that benefit to a new Florida homestead, generally if you establish the new homestead within three years. That matters for move-up buyers already living in Florida: it can make the payment on the next home noticeably lower than a newcomer would pay on the same house.
4. Second homes, rentals and investors
Non-homestead residential property does not get the homestead exemption. Its assessed value is capped at a 10% annual increase for non-school taxes. School taxes on non-homestead property are not capped.
5. CDD and other non-ad valorem charges
Many newer master-planned communities in Riverview, Wesley Chapel, Parrish and Apollo Beach collect Community Development District assessments on the tax bill. These are non-ad valorem: they are not based on value, and homestead does not reduce them. Always ask for the CDD amount for the specific lot or address.
6. What Amendment 3 (2026) proposes
Amendment 3 (CS/HJR 1F) is a proposed change to the Florida Constitution. According to the Property Appraisers' Association of Florida FAQ, if at least 60% of voters approve it, it would take effect January 1, 2027:
| Item | Current law | If Amendment 3 passes |
|---|---|---|
| Homestead exemption, non-school taxes | $51,411 total in 2026 (indexed) | Up to $150,000 from Jan 1, 2027; up to $250,000 from Jan 1, 2028; CPI-adjusted from 2029 |
| Homestead exemption, school taxes | $25,000 | $25,000 (unchanged) |
| New Florida residents (residency on or after Jan 1, 2027) | Same exemption as everyone | Start at a $50,000 non-school exemption; eligible for the larger exemption after four years of Florida homestead |
| Non-homestead assessment cap | 10% per year (non-school) | 5% per year (non-school) |
| Save Our Homes, portability, other personal exemptions | In place | Unchanged |
| CDD and other non-ad valorem charges | Not reduced by homestead | Still not reduced by homestead |
The amendment does not eliminate property taxes, does not change school taxes beyond the existing $25,000 exemption, and does not stop local governments from changing millage rates. The first tax bills affected would be November 2027.
7. What it could mean for buyers in 2026–2027
- Already a Florida resident: under the FAQ's reading, residents as of December 31, 2026 would qualify for the larger exemption when they buy and homestead later.
- Moving to Florida in 2027 or later: the larger exemption would not apply right away. You would start at the $50,000 non-school level and qualify after four years of Florida homestead.
- Buying at today's prices: buyers whose assessed value is close to market value would see the largest dollar effect from a bigger exemption — but the exact savings depend on implementing legislation and future millage rates.
- Second-home and investment buyers: the main change would be a slower cap on assessment growth (5% instead of 10%), not a new exemption.
- If it fails: current law stays in effect, and the 2026 figures above continue (with CPI indexing).
Because the details depend on the vote and on laws the Legislature would still need to pass, I model taxes under current law for any purchase decision and treat any reduction as upside.
Common questions
Why are my property taxes higher than the previous owner's?
Florida's Save Our Homes cap limited the previous owner's assessed value. After a sale, the assessed value generally resets to market value the next January 1, and the cap restarts for the new owner once homestead is granted.
What is the homestead exemption in Florida for 2026?
$51,411 in total: $25,000 against all property taxes plus $26,411 against non-school taxes. The second portion is adjusted for inflation each year.
When is the Florida homestead deadline?
March 1. You must own the home and make it your permanent residence as of January 1 of that tax year.
Does homestead lower CDD fees?
No. CDD assessments are non-ad valorem charges, so homestead exemptions do not reduce them.
What does Florida Amendment 3 do?
If at least 60% of voters approve it on November 3, 2026, it would raise the non-school homestead exemption to up to $150,000 in 2027 and $250,000 in 2028, limit new residents to a $50,000 non-school exemption for their first four years, and lower the non-homestead assessment cap from 10% to 5%. School taxes, Save Our Homes and portability are unchanged.
Official sources & where to verify
- Proposed 2026 Florida Property Tax Amendment FAQ (PDF) — Property Appraisers' Association of Florida
- Manatee County Property Appraiser — Amendment 3 overview — Parrish, Lakewood Ranch, Bradenton
- St. Johns County Property Appraiser — 2025 homestead change — inflation-indexed second exemption
- Florida Department of Revenue — Property Tax
- Hillsborough County Property Appraiser — Exemptions — Riverview, FishHawk, Brandon, Apollo Beach, Tampa
- Pasco County Property Appraiser — Wesley Chapel, Lutz (Pasco side)
Links go to government, regulatory or program sources so you can confirm current rules directly. Rules and figures change; the source controls.