Florida homeowners have a significant property-tax change on the horizon. On November 3, 2026, voters approved Amendment 3, a constitutional amendment that expands homestead exemptions and changes how certain properties are assessed for tax purposes.
For homeowners throughout Orlando and Central Florida, these changes could mean lower property-tax bills beginning in 2027. However, the impact won't be identical for everyone. Understanding how the new rules apply to your property can help you prepare for the year ahead.
Here's what homeowners, buyers, and future Florida residents should know.
What Exactly Is Amendment 3?
Amendment 3 increases Florida's homestead exemption for qualifying primary residences, specifically for property taxes that do not fund school districts.
The expanded exemption will be introduced in stages:
2027: Up to $150,000 of assessed value exempt from non-school property taxes.
2028: Up to $250,000 of assessed value exempt from non-school property taxes.
2029 and beyond: Inflation adjustments to the expanded exemption.
The amendment takes effect January 1, 2027.
Importantly, school district property taxes remain separate, and the expanded exemption does not eliminate property taxes altogether.
How Could This Affect Orlando Homeowners?
For homeowners who qualify, the larger homestead exemption could reduce the portion of their property's assessed value subject to non-school taxes.
For example, imagine a qualifying homeowner whose property has an assessed value of $350,000.
With the expanded 2027 exemption, up to $150,000 could be exempt from non-school property taxes, leaving $200,000 in assessed value subject to those taxes before other applicable adjustments.
However, a $150,000 exemption does not mean a $150,000 reduction in your tax bill. The exemption reduces taxable assessed value, not the amount of taxes owed dollar for dollar.
Actual savings depend on factors such as your property's assessed value, applicable millage rates, eligibility, and other exemptions.
New to Florida? Residency Matters
Amendment 3 also introduces an important distinction for people establishing Florida residency.
Homeowners who are Florida residents by December 31, 2026, may qualify for the expanded exemption beginning in 2027, provided they meet the applicable homestead requirements.
Individuals who are not Florida residents on December 31, 2026, can still qualify for the existing homestead exemption when eligible. However, the expanded exemption generally begins in their fifth year of homestead eligibility, subject to constitutional requirements.
For buyers relocating to communities such as Winter Garden, Clermont, Lake Nona, or Kissimmee, this is an important consideration when estimating future ownership costs.
A home's current property-tax bill may not reflect what a new owner will pay after purchasing the property.
What About Second Homes and Rental Properties?
Amendment 3 also affects qualifying non-homestead properties, including second homes, rental properties, and certain commercial real estate.
The amendment reduces the annual cap on increases in assessed value for these properties from 10% to 5%.
This change limits how quickly assessed values can increase under the applicable assessment rules. However, it does not guarantee that property-tax bills will remain unchanged, since tax rates and other factors can still affect the final amount owed.
For Central Florida property owners with investment or vacation properties, understanding this distinction can be helpful when planning future expenses.
Could These Changes Affect Local Communities?
Property taxes help fund public services throughout Florida, including infrastructure, public safety, and local government operations.
Amendment 3 also establishes rules concerning how counties and municipalities may use certain property-tax revenues.
Supporters have emphasized the potential for property-tax relief for qualifying homeowners. Others have raised concerns about how changes in revenue could affect local budgets and public services.
The effects will depend on implementation and decisions made by individual jurisdictions.
For Orlando-area homeowners, following developments within their own county and municipality can provide a clearer understanding of how these changes may affect their community.
What Should Homeowners Do Before 2027?
With the changes approaching, there are several practical steps homeowners can take.
Review your property-tax information. Check your property's assessed value, existing exemptions, and applicable taxing authorities.
Confirm your homestead status. If your home is your permanent residence, verify that your exemption is in place and that your information is current.
Understand your county's procedures. Property appraisers in Orange, Seminole, Osceola, Lake, and other Central Florida counties can provide guidance about eligibility and exemption applications.
Plan ahead if you're purchasing. Ask about estimated property taxes after a change in ownership instead of relying solely on the seller's current tax bill.
Stay informed. Additional administrative guidance may become available as Florida implements the amendment.
Taking these steps can help homeowners better understand what to expect rather than waiting until their next tax bill arrives.
The Bottom Line
Could Florida's Amendment 3 change your property taxes in 2027? For many qualifying homeowners, yes.
The expanded homestead exemption could reduce the taxable assessed value of a primary residence for non-school property taxes. Meanwhile, changes to non-homestead assessment limits and residency requirements introduce additional considerations for investment property owners and people moving to Florida.
Whether you already own a home or are considering a move to Central Florida, understanding these changes is an important part of planning for the long-term cost of homeownership.
This article is intended for general educational purposes and does not constitute tax or legal advice. Consult your county property appraiser or a qualified tax professional regarding your specific circumstances.
