On November 3, 2026, Florida voters approved Amendment 3, the biggest change to the state's property tax system in nearly two decades. The measure needed 60% of the vote to pass and received about 62%. It triples the homestead exemption for most homeowners in 2027, raises it again in 2028, and cuts in half the cap on how fast the taxable value of rentals, second homes and other non-homestead properties can grow.
If you own a home in Miami, are thinking about buying one, own an investment property or are planning a move to Florida, this change affects you. Below I explain, in plain English, what Amendment 3 does, when it takes effect, how much it could save you and what it means for the Miami real estate market.
Amendment 3 at a Glance
| What changes | Before | After Amendment 3 |
|---|---|---|
| Homestead exemption on non-school taxes | About $51,400 in total in 2026 ($25,000 on all taxes + about $26,400 on non-school taxes) | Up to $150,000 in 2027 and up to $250,000 in 2028, then adjusted for inflation |
| Homestead exemption on school taxes | $25,000 | $25,000 (no change) |
| Annual assessment cap on non-homestead property (rentals, second homes, commercial) | 10% per year | 5% per year, starting January 1, 2027 |
| Save Our Homes cap on homesteads | 3% or inflation, whichever is lower | No change |
| Portability | Available | No change |
| New Florida residents (on or after January 1, 2027) | Full homestead exemption | Start with a $50,000 exemption; the larger exemption applies from the fifth year |
What Amendment 3 Does for Homeowners
If the home is your permanent primary residence and you qualify for the homestead exemption, Amendment 3 lowers the part of your home's value that local governments can tax. Today, a homestead gets about $51,400 off its assessed value: $25,000 applies to all taxes, including school taxes, and the rest applies only to non-school taxes (county, city, fire, library and similar).
Under Amendment 3, the exemption on non-school taxes rises to $150,000 in 2027 and $250,000 in 2028. After that, it will be adjusted each year for inflation, and the Legislature can allow cities and counties to raise it further. The school-tax exemption stays at $25,000, so every homeowner will still receive a tax bill that includes school taxes, which make up a large share of the typical Miami-Dade bill.
How much could you save?
Your savings depend on two numbers: how much of the new exemption you can actually use (your home's assessed value must be high enough) and the non-school tax rate (the "millage") where you live. Each mill equals $1 of tax per $1,000 of taxable value. Non-school rates in Miami-Dade vary a lot by city, so the table below shows the math at three illustrative rates, assuming tax rates don't change:
| Non-school tax rate | Estimated savings in 2027 (about $98,600 more exempt) | Estimated savings in 2028 (about $198,600 more exempt) |
|---|---|---|
| 10 mills | About $986 | About $1,986 |
| 12 mills | About $1,183 | About $2,383 |
| 14 mills | About $1,380 | About $2,780 |
To find your rate, look at your 2026 TRIM notice or tax bill from Miami-Dade County and add up every line except the school board. Keep in mind that the exemption does not reduce non-ad valorem assessments, such as garbage or special district fees, which appear separately on your bill.
Why "estimated": cities and counties set their tax rates every year. With less taxable value, some local governments may raise rates or fees to cover part of the lost revenue. A state analysis projected that local governments could lose nearly $5 billion in the first year, close to $9 billion the next and eventually about $12 billion a year. Your real savings will depend on the budgets they adopt in 2027 and 2028.
Planning a Move to Florida? Watch the December 31, 2026 Date
This is one of the most important details of Amendment 3, and one of the least discussed. According to the amendment as presented to voters, people who are permanent Florida residents as of December 31, 2026 qualify for the larger exemptions starting in 2027, even if they buy a home later.
People who become Florida residents on or after January 1, 2027 start with a smaller exemption for new residents ($50,000 on non-school taxes, adjusted for inflation starting in 2028). After keeping a Florida homestead exemption for four years, they become eligible for the larger exemption starting January 1 of the fifth year.
If you have been planning to relocate to Miami from another state or country, talk to a tax professional about what establishing residency before the end of 2026 would involve. Residency is about where you truly live, not just a document, and the Legislature still has to pass rules to put the amendment into practice.
What Amendment 3 Means for Investors, Landlords and Second-Home Owners
Rental properties, second homes, vacation homes and commercial buildings can't claim the homestead exemption, so the larger exemption doesn't apply to them. The change that matters for these owners is the non-homestead assessment cap.
Today, the assessed value of a non-homestead property can rise by up to 10% a year for non-school taxes. Starting January 1, 2027, that cap drops to 5%. In a market where values are rising quickly, your assessed value, and the non-school part of your tax bill, will grow more slowly. Here is an illustrative example for a rental condo assessed at $400,000 in a market rising 10% or more a year:
| Year | Assessed value with the old 10% cap | Assessed value with the new 5% cap |
|---|---|---|
| Starting value | $400,000 | $400,000 |
| Year 1 | $440,000 | $420,000 |
| Year 2 | $484,000 | $441,000 |
| Year 3 | $532,400 | $463,050 |
In this example, by year three the property would be taxed on about $69,000 less for non-school purposes. Three important caveats: the cap only helps when market values rise faster than 5%; school taxes on non-homestead property are still based on full market value; and the cap resets when a property is sold, so a buyer's first tax bill is based on the purchase price.
For foreign owners, this is one of the few direct property tax benefits available, since non-residents can't claim homestead. I explain the full tax picture for international buyers in my guide (in Spanish) to taxes for foreigners who own property in Miami. If you run a vacation rental, see also my Miami short-term rental guide.
What It Means for First-Time Buyers
First-time and recent buyers may benefit the most. Long-time homeowners already pay taxes on an assessed value well below market value thanks to the Save Our Homes cap. Recent buyers are assessed closer to what they paid, so they are more likely to use the full new exemption.
Lower property taxes also improve monthly affordability. A homeowner who saves around $2,000 a year in 2028 is saving about $165 a month, which can help with qualifying for a mortgage or absorbing higher insurance costs. If you are deciding whether to buy now or keep renting, try my free calculator on what waiting to buy really costs you.
What It Means for Sellers
Amendment 3 may encourage some buyers who have been waiting on the sidelines, because the cost of owning a primary home goes down. It also adds a new talking point when you market your home: buyers who will live in the property can estimate a lower future tax bill than the one the seller pays today. Property taxes are only one piece of affordability, though; mortgage rates, prices and insurance will continue to drive the market. If you are thinking of selling, my guide to what your Miami home is worth is a good place to start.
What It Means for Condo Owners
If you live in your condo as your primary residence and have homestead, you benefit from the larger exemption on your unit's assessed value. But Amendment 3 does not change your HOA dues, special assessments or the building's insurance costs, which are often the bigger monthly expenses in Miami condos today. Condo investors who rent their units benefit from the 5% cap instead.
Key Dates
- November 3, 2026.Voters approve Amendment 3 with about 62% of the vote.
- December 31, 2026.Residency cut-off: permanent Florida residents by this date qualify for the larger exemption amounts.
- January 1, 2027.The amendment takes effect: $150,000 non-school homestead exemption and 5% non-homestead cap. This is also the date your homestead status is determined for the 2027 tax year.
- March 1, 2027.Usual deadline to apply for homestead with the Miami-Dade Property Appraiser if you bought in 2026.
- August 2027.TRIM notices show the first estimated effect of Amendment 3.
- November 2027.First property tax bills under Amendment 3.
- January 1, 2028.The non-school homestead exemption rises to $250,000.
What to Do Now
- If you own your primary home and don't have homestead yet, apply with the Miami-Dade Property Appraiser by March 1.
- If you are buying a home to live in, ask your agent to estimate taxes at your purchase price, with and without the new exemption.
- If you are planning a move to Florida, talk to a tax professional before December 31, 2026.
- If you own rentals or a second home, review your assessed value each year and remember the 5% cap applies to non-school taxes only.
- Watch your city's budget hearings in 2027: the tax rates they adopt will decide how much of the savings you actually see.
Frequently Asked Questions
Did Florida Amendment 3 pass?
Yes. Florida voters approved Amendment 3 on November 3, 2026 with about 62% of the vote; it needed 60% to pass.
When does Amendment 3 take effect?
On January 1, 2027. Homeowners will see the first effect on the TRIM notices sent in August 2027 and the tax bills sent in November 2027. The exemption increases again to $250,000 on January 1, 2028.
Does Amendment 3 eliminate property taxes in Florida?
No. It increases the homestead exemption on non-school taxes and lowers the cap for non-homestead properties. Homeowners still pay school taxes and any portion of value above the exemption, plus non-ad valorem fees.
Does Amendment 3 apply to rental properties and second homes?
Not the larger homestead exemption. Rentals and second homes benefit from the lower assessment cap, which falls from 10% to 5% a year for non-school taxes starting in 2027.
I'm moving to Florida in 2027. Do I get the $250,000 exemption?
Not right away. New residents who establish residency on or after January 1, 2027 start with a $50,000 non-school exemption and become eligible for the larger exemption from the fifth year of keeping a Florida homestead.
How much will I save with Amendment 3 in Miami?
It depends on your assessed value and your local non-school tax rate. At illustrative rates of 10 to 14 mills, eligible homeowners could save roughly $1,000 to $1,400 in 2027 and $2,000 to $2,800 in 2028, if tax rates stay the same.
This article is for general information only and is not tax or legal advice. Amendment 3 requires implementing legislation, and some details may change. Savings estimates are illustrative and assume no change in tax rates. Sources: Florida election results reported by Spectrum Bay News 9 and WUSF (November 3-4, 2026); Pinellas County Property Appraiser Amendment 3 FAQ; Florida Office of Economic and Demographic Research revenue impact estimate. Confirm your situation with the Miami-Dade Property Appraiser and a tax professional.
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