Amendment 3 Blog Post: What Florida's New Homestead Exemption Means for You

What Does Florida's Amendment 3 Mean for Homeowners and Investors?

Florida's Amendment 3 means a larger property tax exemption for homeowners who live in their homes full-time, and more predictable tax assessments for investors and second-home owners. Approved by Florida voters on November 3, 2026, the amendment raises the homestead exemption on non-school property taxes and lowers the yearly cap on assessment increases for rentals, second homes and commercial property from 10% to 5%.

For property owners and buyers in Miami Beach, Normandy Shores and Normandy Isle, these changes can affect how property taxes are calculated starting in 2027. Whether you already own a home, hold an investment property or are planning a purchase, understanding what changed, who it affects and when it applies can help you make more informed real estate decisions.

What Is Florida's Amendment 3?

Amendment 3 is a change to Florida's Constitution, placed on the ballot by the Florida Legislature. Its official title is "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments."

Two terms help explain it. A homestead exemption is an amount taken off the taxable value of a home that is the owner's permanent, primary residence in Florida. Assessed value is the value the county uses to calculate property taxes, which is not always the same as market value.

The amendment changes both: it increases the homestead exemption for primary residences, and it limits how quickly the assessed value of other properties can rise from year to year.

How Much Is the New Homestead Exemption?

The homestead exemption on non-school property taxes is increasing in two steps. In 2026, it is about $50,000. Beginning January 1, 2027, it rises to $150,000, and in 2028 it increases to $250,000. Starting in 2029, the amount will be adjusted each year for inflation.

A larger exemption lowers the taxable value of a primary home, which can reduce the non-school portion of the property tax bill. The actual savings depend on each home's assessed value and the local tax rates that apply to it.

It is also important to note that school property taxes still apply. For school taxes, the existing $25,000 exemption remains in place.

What Does Amendment 3 Mean for Investors and Second-Home Owners?

For investors and second-home owners, the most important change is the lower cap. The yearly cap on assessment increases for non-homestead property drops from 10% to 5%. This is the most that the assessed value of a rental, second home or commercial property can increase each year for non-school taxes.

These properties do not receive the new, larger homestead exemption. However, a lower cap can make year-to-year property tax assessments more predictable, which matters when planning a rental budget, evaluating an investment property or holding a second home in Miami Beach.

For buyers comparing a primary residence with an investment purchase, the difference between homestead and non-homestead treatment is now an even more important part of the conversation.

Who Qualifies, and When Does Amendment 3 Take Effect?

Amendment 3 takes effect on January 1, 2027, and first applies to the 2027 tax roll. The first property tax bills to reflect the change will be the 2027 bills, so 2026 bills are not affected.

Residency timing matters. Florida residents as of December 31, 2026, may qualify for the increased exemption on their homesteaded property. Those who become Florida residents after that date generally begin with the current exemption and become eligible for the larger exemption in their fifth year of homestead exemption.

Owning a home alone does not qualify a property for the homestead exemption. The home must be the owner's permanent residence, and the owner must apply with the county property appraiser. For buyers planning a move to Miami Beach, timing and residency are worth discussing before closing.

What Should Normandy Shores and Normandy Isle Owners Consider Now?

Normandy is not one market. Waterfront homes, golf-front homes, non-waterfront homes, townhouses and condos each behave differently, and Amendment 3 may affect each type of owner in a different way.

Homeowners may want to confirm that their homestead exemption is in place before the change takes effect. Investors and second-home owners may want to review how the lower assessment cap fits into their long-term holding plans. Buyers considering a primary residence in Miami Beach may want to understand how the December 31, 2026 residency date applies to their timeline.

Working with a real estate professional who knows the Normandy Shores and Normandy Isle micro-markets can help owners and buyers understand how these changes fit into their plans, alongside guidance from the county property appraiser or a tax professional.

Understanding Amendment 3 in Miami Beach

So, what does Florida's Amendment 3 mean for homeowners and investors? For homeowners, it means a homestead exemption that grows to $250,000 by 2028 on non-school property taxes. For investors and second-home owners, it means the assessed value of non-homestead property can increase no more than 5% a year, down from 10%.

Whether you own a primary residence, a second home or an investment property in Miami Beach, the best place to begin is by understanding how these changes apply to your specific property and plans.

Ready to talk about what Amendment 3 means for your property?

Contact Vanesa Carpignano Group to discuss your home, investment property or next purchase in Normandy Shores, Normandy Isles, North Beach and the greater Miami Beach area. Let us help you plan your next move with local insight and a clear strategy.

Follow along on Instagram. For market updates, new listings and insider news about Normandy Shores and Miami Beach, follow Vanesa on Instagram at @vanesacarpignano.

Vanesa Carpignano
Top Producer & Real Estate Specialist in
Normandy Shores, Normandy Isles, North Beach, North Bay & North Miami Beach
Executive Director of Luxury Sales
Douglas Elliman – Sports & Entertainment Division
305-790-1249 | [email protected]
www.vanesacarpignano.com