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Florida voters just handed homeowners a big property tax cut. Amendment 3 got 62% of the vote Tuesday, two points more than the 60% it needed to become law (1).
Gov. Ron DeSantis cheered on X: “Big win on Amendment 3 for Florida homeowners!” (1)(2)
Here’s what passed. The homestead exemption on non-school property taxes jumps from $50,000 to $150,000 in 2027, then to $250,000 in 2028, with inflation adjustments after that (1)(2).
That’s a lot of money leaving local budgets. A state analysis projects local governments could lose nearly $5 billion in the first year, rising toward a recurring hit of nearly $12 billion (3).
I’ve been a CPA since 1981, and I own a home in Fort Lauderdale, so I’ve read the fine print. For longtime Florida homeowners, this is real money. But if you’re a retiree thinking about moving here, there’s a catch the celebrations skip.
Here are five things to know before you count your savings.
1. Moving to Florida soon? You’ll wait five years for the full break
This is the part out-of-state retirees can easily miss. People who move to Florida starting next year “will have to live in the state for five years” before getting the full benefit, according to WUSF (3).
Newcomers receive lower exemptions for their first five years of residency before earning the full exemption, WKMG’s ClickOrlando reported (4). People who are Florida residents by Dec. 31, 2026, can qualify for the expanded exemption if they meet the requirements (5).
So if you’re weighing a move, the timing of your move matters. And property tax is only one piece of the retirement-move math. State income tax, insurance, health care and what you’ll net from selling your current home all belong in the same spreadsheet.
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2. For many current homeowners, it’s real money
The bigger exemption shrinks the part of your home’s value that gets taxed. Say your home has a taxable value of $300,000. With a $250,000 exemption, “you would only pay non-school taxes on the remaining $50,000,” as NBC Miami explained (5).
How much that saves depends on where you live. Florida TaxWatch estimates, published by ClickOrlando, put the savings for a homeowner in the city of Orlando at $1,113 in 2027 and $2,242 in 2028 (4).
Your number could be higher or lower. Local tax rates and your home’s assessed value drive it, so plug your own figures into an online calculator. Use your assessed value, not your market value (6).
3. School taxes don’t go away
This isn’t the end of your property tax bill. NBC Miami reported that “homeowners would still pay school taxes, since that part of the bill would not be covered by the exemption increase” (5).
Even homeowners whose assessed value falls below the new exemption would still owe school taxes and any charges that aren’t based on property value, WFTV noted (6). In other words, budget for a smaller bill, not a zero bill.
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4. Somebody still pays for the fire trucks
Billions in lost revenue have to come from somewhere, or services shrink. In Coral Springs alone, city revenue could drop by about $14.5 million in 2028 and about $26.8 million by 2029, NBC Miami reported, which could affect public safety, parks and infrastructure (5).
Critics warned about this before the vote. “My concern is that the amendment is a one-size-fits-all amendment, and every community is different,” state Sen. Kathleen Passidomo, R-Naples, said last month (1).
Watch your city and county budgets next year. Fees and other charges that aren’t based on property value aren’t covered by the exemption (6).
And remember that property tax is only one line in what it costs to own a Florida home. Homeowners insurance is another. If you haven’t shopped your policy in a while, compare home insurance quotes here.
5. Landlords and other non-homestead owners get a smaller break
If you own a rental or other property in Florida that isn’t your primary home, you don’t get the homestead exemption. But you do get something.
Right now, the taxable value of non-homestead properties can rise by as much as 10% a year. Amendment 3 cuts that cap in half, to 5% (2)(3). That slows increases. It doesn’t cut your current bill.
My honest take
If you already live in Florida full time, this is a nice raise in disguise. Make sure your homestead exemption is in place, and watch what your local government does to make up the money.
If you’re thinking about retiring there, don’t let a tax cut choose your state. Five years is a long wait for the full break, and the full cost of living somewhere is a lot more than one line on a tax bill.
Sources: 1. NBC Miami; 2. CBS12; 3. WUSF; 4. ClickOrlando (WKMG); 5. NBC Miami (explainer); 6. WFTV
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