Buying a Home in Florida After Amendment 3: What Every Buyer Should Know

Florida’s Amendment 3 raises the homestead exemption dramatically, but the headline savings do not automatically apply to every buyer. Whether you are moving from another state, renting in Florida today, or buying your next Florida home, the details matter. Here is what buyers should know before they write an offer.

The quick version

• The non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028, then adjusts with inflation.
• People who were Florida residents on December 31, 2026 can receive the larger exemption once they qualify for homestead.
• People who were not Florida residents on December 31, 2026 first receive the existing exemption (about $50,000, inflation-adjusted from 2028). The larger exemption begins in their fifth year of exemption, to the extent the U.S. Constitution permits.
• Local governments may shorten that wait for their own taxes by a two-thirds vote, starting in 2030.

It is about residency, not your closing date

The cutoff is written around Florida residency on December 31, 2026, not the date you close on a house. That distinction creates a few scenarios:

You already live in Florida and rent

Florida renters who buy later are generally not considered “new” residents under the most common reading of the amendment. Keep proof of your Florida residency (driver license, vehicle and voter registration, a Florida address on your tax return and similar records) because the rules are still being finalized.

You are moving to Florida in 2027 or later

If you were not a Florida resident on December 31, 2026, you can still claim homestead and benefit from the Save Our Homes cap from your first homestead year. But the exemption starts at the smaller amount. Example: a family moving from Ohio in June 2027 would not get homestead on the 2027 bill because homestead status is set on January 1. They would file in 2028, receive the smaller exemption for the next several years, and move to the larger exemption in the fifth year of exemption. One analysis estimated the cost of arriving after the cutoff at roughly $1,300 to $2,800 a year depending on the county, so it is worth factoring in.

You close before year-end but are not moving yet

If you buy in 2026 but do not make Florida your permanent residence, the property is a second home. Second homes do not receive the homestead exemption, and your residency status for the cutoff depends on your real, documented domicile, not just owning a house. Do not rush to claim Florida residency just for a tax benefit. States where you used to live can challenge residency claims, and a Florida driver license and voter registration alone do not settle the question. Talk to a CPA or attorney first.

Your first-year tax bill is not the seller’s

In Florida, a property is reassessed at market value after a sale. A seller who has had Save Our Homes protection for years may be paying far less than you will. When you budget, estimate taxes using the expected purchase price and your likely exemptions, not the seller’s current bill. Your lender and a local broker can help you build a realistic estimate, and your county property appraiser’s website often has an online tax estimator.

The 5 percent cap and why it matters for investors

If you are buying a rental or second home, the amendment cuts the annual cap on assessment increases for non-school taxes from 10 percent to 5 percent. That limits how quickly your assessed value can rise after the first year. It does not limit tax rates, school taxes are still based on market value, and your property still resets to market value when it sells.

Will prices go up?

Some brokers expect Amendment 3 to attract more buyers and encourage sellers to hold out for higher prices. Others point out that the savings are modest compared with prices at the upper end. Nobody knows yet, and local supply, mortgage rates and insurance costs will matter more than any single factor. Expect the decisions of local governments on millage rates to affect long-term carrying costs.

A buyer’s checklist

1. Decide whether the home will be your permanent residence, and when you will become a Florida resident.
2. Gather proof of Florida residency.
3. Estimate taxes using the purchase price, not the seller’s bill.
4. Plan to file for homestead with the county property appraiser by March 1 following your closing.
5. Ask your lender to include taxes, homeowners insurance and any flood insurance in the payment estimate.
6. Ask about HOA, CDD and non-ad valorem fees, which Amendment 3 does not reduce.

Related reading: Amendment 3 explained for homeowners and Amendment 3 for snowbirds.

Talk to a Florida broker before you decide

Buying in Orlando, Lake Nona, Winter Park, Melbourne, Palm Bay or Marion Oaks? Call (407) 790-7341 or send us a message and Jason Sirounis will help you work through the numbers for your situation.

This article is general information about a constitutional amendment that was approved by voters and is still being implemented. It is not tax or legal advice. Details can change when the Legislature passes implementing rules in 2027, so confirm figures and eligibility with your county property appraiser and a qualified Florida tax professional or attorney.