Amendment 3: What It Means for Homeowners, Landlords, and Renters

On November 3, 2026, Florida voters approved Amendment 3. Since then, we've heard from residents and property owners asking a fair question: what does this mean for me? As a company that serves homeowners, landlords, and renters every day, we want to give you a clear answer and our honest view. Opinions differ in our industry, and this letter is Eaton Realty's official position.

What the Amendment Does

• Homestead exemption: For non-school property taxes, the exemption on primary residences rises to $150,000 in 2027 and $250,000 in 2028, then adjusts for inflation. School taxes are unchanged.
• New residents: Homeowners who were not Florida residents on December 31, 2026, start with a $50,000 exemption and receive the larger one beginning in their fifth year of exemption.
• Non-homestead cap: For rentals, second homes, and commercial property, the yearly limit on increases in assessed value for non-school taxes drops from 10% to 5%.
• Spending: Local property taxes are restricted to specified purposes, including public safety, infrastructure, and government operations. Other spending is permitted with local approval unless prohibited by state law.
• Timing: The amendment takes effect January 1, 2027, and the first changes appear on November 2027 tax bills. Implementing legislation is already law and makes it harder for local governments to raise tax rates, though some details and legal questions remain.

State economists project local property tax revenue will fall by about $5 billion in the first fiscal year, growing to nearly $12 billion a year once fully phased in, assuming tax rates stay the same. The amendment provides no dedicated state funding to offset those reductions.

Homeowners

Advantage: Meaningful savings on a primary residence, growing as the exemption reaches $250,000. Established Florida residents benefit most.

Disadvantage: Florida has no state income tax, so local governments will have to cut spending, find efficiencies, or look to other revenue. That could mean new or higher fees and special assessments, which would offset part of the savings. Buyers relocating to Florida will wait up to five years for the full exemption.

Landlords and Investors

Advantage: A 5% cap slows how quickly the assessed value of a long-held rental can climb.

Disadvantage: It does nothing to reduce taxes that are already high. The cap does not apply to school taxes, and after a sale, the property is reassessed at full market value the following January 1, so buyers should not count on the seller's tax bill. The cap also limits assessments, not tax rates or fees. Local governments can still raise millage within legal limits, though the new state law makes that harder. With the homestead tax base shrinking, rental properties may carry a larger share of what local governments still collect.

Renters

Advantage: If your landlord's taxes rise more slowly, one source of upward pressure on rent could ease.

Disadvantage: Renters receive no direct tax relief. Rent remains driven mostly by supply and demand, so we can't promise increases or decreases either way. You will pay any new local fees or taxes like everyone else, and new costs placed on rental property can show up in rents over time, depending on the market.

Our Position

We respect the voters' decision and understand why homeowners welcome relief. But we do not believe Amendment 3 is in Florida's long-term best interest. Nearly $12 billion in projected annual revenue reductions cannot be ignored. Local governments will face difficult choices about services, spending, and other sources of revenue, and we are concerned that some of that burden will fall on renters, small landlords, and future Florida residents.

No one has a crystal ball. How local governments, the Legislature, and the courts respond will take years to play out, and there is still room for a balanced outcome. We hope for the best, and we will keep our owners and residents informed as the details become clear.

If you have additional questions about how this may affect your property or your lease, please reach out to our team.