Florida voters are projected to approve a measure that would reform the state’s property tax system, increasing the homestead property tax exemption and reducing the tax bill for some households.
Amendment 3, championed by outgoing Gov. Ron DeSantis, aims to increase the homestead property tax exemption from $50,000 to $150,000 in 2027 and raise it again to $250,000 in 2028. DeSantis estimated the latter threshold would eliminate property tax for 60% of Florida homeowners.
At 9:45 p.m. ET, with 98% of votes reported, the Associated Press reports the measure with 62% of votes in favor and 38% opposed. The measure, which would go into effect in 2027, needs 60% voter approval to pass.
“Big win on Amendment 3 for Florida homeowners!,” DeSantis posted to X.
The exemption would only apply to Floridians who established residency prior to December 2026. New residents would need to wait five years before being eligible for the exemptions.
The measure would also lower the annual cap on assessment increases for non-homestead properties to 5%, down from the current 10%.
Byron Donalds, a GOP representative projected to win the election to replace the term-limited DeSantis, supported the measure. His opponent, Democrat David Jolly, did not. AP projects that Donalds will win the governor’s race.
“In a state where homeowners insurance premiums are growing quickly due to climate concerns, which in turn drives HOA dues higher as well, any relief from the annual carrying costs of owning a home in Florida is welcome,” says Realtor.com Senior Economist Joel Berner.
Berner notes that the median listing price in Florida fell 3.5% year over year in September and the number of homes for sale fell 9.6% from last year.
“Buyers and sellers are opting out of participation in the market as affordability constraints keep deals from going the distance at prices both parties can agree upon,” the economist says.
Change in property taxes
The MidFlorida Credit Union estimated in 2024 that the average homeowner in the state pays around $2,338 a year in property taxes. In more expensive areas like Miami-Dade County or Palm Beach County, taxes can be significantly higher.
DeSantis argued that the measure would provide much-needed financial relief for homeowners. Opponents argued the reduction in property tax revenue would have a deleterious effect on local governments.
Florida does not have an individual income tax or estate taxes, creating a limited pool of money for local governments to fund with. State economists had argued that the measure would wipe out nearly a quarter of all funding for local governments and deprive schools of billions in local revenue, hitting smaller counties especially hard.
In August, a circuit court judge ruled that the bill’s title, “Save Our Homes From Excessive Property Taxes” was ““clearly and conclusively defective” and “more akin to a political slogan” than a neutral statement. The judge also dinged the bill for including “factually inaccurate” language and ordered that ballot language be amended prior to the midterm election.
Amendment 3’s impact
A model by NAR found cutting property taxes by $200 a month lowered the income needed to afford the median-priced Florida home from about $133,800 to $125,200—a move that would put roughly 242,000 additional households above the affordability threshold. Among households under 45, NAR estimates about 93,500 more could afford a starter home, including roughly 40,000 younger renters.
Florida homeowners might be thinking of more immediate relief, though. The state has some of the highest homeowners association fees in the country. It is also a center of the nation’s property insurance crisis.
Florida Realtors’ political action committee put $18 million into a “Vote Yes on 3” campaign, significantly out-raising its opponents. In an op-ed to Realtor.com, Florida Realtors® President Chuck Bonfiglio Jr. refuted that the measure necessarily meant cuts to public services.
“Voting yes on Amendment 3 is Step 1, where Floridians decide that homeowners deserve this relief. But we can’t forget about Step 2: implementation, where communities will work through how to deliver that relief while keeping public safety and core services first,” he wrote.
Meanwhile, opponents argue that such a measure would increase costs for public services, and that the measure privileges the desires of homeowners over non-homeowning citizens. An analysis published by the Florida Housing Coalition found that an estimated $1.61 billion in property taxes could be shifted to rental homes in 2028, growing to $2.19 billion by 2031.
“There’s a small segment of homeowners that will benefit from this,” Mike Weinstein, Jacksonville’s chief administrative officer and a former state legislator, told NPR. “But the majority of people — renters, business owners, everyone else, and even many homeowners — won’t see any benefit from this amendment at all.”
