Quick Summary
- The date that matters is residency, not just closing: If Florida voters approve Amendment 3 on November 3, 2026, homeowners who are permanent Florida residents as of December 31, 2026 would be eligible for a non-school homestead exemption of up to $150,000 in 2027 and up to $250,000 in 2028.
- Later arrivals would wait four years: Buyers who become Florida residents on or after January 1, 2027 would start with the existing, smaller exemption (roughly $50,000) and would not reach the larger amount until the fifth year of their homestead exemption.
- Nothing is final yet: The amendment needs at least 60% voter approval, does not touch school taxes, and would require implementing legislation that will define how residency is proven, so any savings figure today is an illustration, not a promise.
For buyers relocating to Southwest Florida this fall, Amendment 3 turns December 31, 2026 into a potentially valuable date. If the measure passes, a person who is a permanent Florida resident on that date would qualify for the new, larger homestead exemption on the non-school portion of the property tax bill, while a person who becomes a resident one day later would generally wait until the fifth year of homestead to receive it. Attorney Sam Saad advises agents with relocating clients in Naples, Bonita Springs, Fort Myers and Marco Island to raise this timing question now, before contracts are written, because the residency decision and the closing date interact in ways that are easy to get wrong.
What Amendment 3 Would Change About the Florida Homestead Exemption
Under current law, a qualifying Florida homeowner receives up to $51,411 in homestead exemptions for the 2026 tax year. That figure combines a $25,000 exemption that applies to all taxes, including school taxes, and a second exemption of $26,411 that applies only to non-school levies after inflation adjustments. Amendment 3, which appears on the ballot as CS/HJR 1F, would replace that structure for qualifying homesteads. The $25,000 school exemption would remain, but the non-school exemption would rise to as much as $150,000 beginning January 1, 2027 and as much as $250,000 beginning January 1, 2028, with annual inflation adjustments starting in 2029.
Save Our Homes, portability, and existing exemptions for seniors, widows and widowers, veterans and people with disabilities are not changed by the proposal. If approved, the measure takes effect January 1, 2027, and property appraisers expect its first visible effect on the August 2027 proposed tax notices.
Why December 31, 2026 Matters for Relocating Buyers
The amendment draws a line between people who are permanent Florida residents as of December 31, 2026 and people who establish residency on or after January 1, 2027. The first group would be eligible for the larger exemption on the normal schedule. County property appraisers have also explained that a person who establishes Florida residency by December 31 but has not yet purchased a home would remain eligible for the larger amount when they do buy and apply for homestead.
The second group would begin with the exemption established for new residents, roughly $50,000 against non-school taxes, adjusted for inflation beginning in 2028. After maintaining a Florida homestead exemption for four years, the owner would become eligible for the larger exemption starting January 1 of the fifth year. The revised ballot summary adds that this waiting period applies to the extent permitted by the U.S. Constitution, language that signals the provision could face legal challenge if the amendment passes.
That is why “close before year end” is incomplete advice. The amendment keys eligibility to permanent residency, not the recording date of a deed. A buyer who has genuinely relocated to Collier or Lee County by December 31, through a rental or a family home, may already be on the favorable side of the line even if the purchase closes in early 2027. A seasonal buyer who closes on a Naples condominium in December but keeps a primary home and driver’s license in Ohio has not established residency simply by owning Florida property.
How Florida Residency Is Established and Why Closing Timing Still Matters
Florida has no single residency certificate. Property appraisers typically look at a combination of indicators, such as a Florida driver’s license at the Florida address, Florida vehicle and voter registration, and, for many relocating owners, a sworn declaration of domicile filed with the clerk of court. How the December 31 test will be verified is one of the details implementing legislation is expected to settle, so careful record-keeping now is the prudent course.
Closing timing still matters for a separate reason rooted in existing law. To receive a homestead exemption for a given tax year, an owner must hold title and make the property a permanent residence as of January 1 of that year, and the application is generally due to the county property appraiser by March 1. A relocating buyer who closes, moves in and changes over key residency documents before December 31, 2026 would be positioned to apply for homestead for the 2027 tax year. A buyer who closes in February 2027 would generally wait until 2028 for any homestead exemption on that home, regardless of how Amendment 3 plays out.
How Title Is Held Can Affect Homestead Eligibility
Relocating buyers often arrive with an estate plan drafted in another state that directs them to take title in a way that does not fit Florida homestead. Homestead belongs to natural persons who live on the property, so a home titled to a limited liability company generally does not qualify. A revocable trust can often hold homestead property, but out-of-state trust documents do not always contain the language Florida property appraisers look for.
Attorney Sam Saad, who serves on the Naples Area Board of Realtors contract creation committee, sees these issues surface late, after vesting has been decided. Reviewing how a relocating buyer will hold title before closing protects the homestead exemption as well as Florida’s homestead creditor protection and devise rules.
What Amendment 3 Would Mean for Non-Homestead Investors
Owners of rentals, second homes, commercial property and vacant land would see a different change: the annual cap on assessed-value increases for non-school levies would drop from 10% to 5%. That slows growth in assessed value but does not cap tax rates, and school taxes would still be based on full market value. For investors holding seasonal rentals in Bonita Springs or on Marco Island, the effect would depend on how fast values rise and how local governments set millage.
What Remains Uncertain Before and After the Vote
Amendment 3 needs at least 60% of the vote on November 3, 2026. Its ballot summary was rewritten this summer after a Leon County judge found the original wording misleading. Supporters frame it as homeowner tax relief; opponents and many local officials point to the effect on local government revenue. The Law Office of Sam J. Saad III takes no position on the measure.
Even if it passes, no one can calculate a specific owner’s savings today; that depends on assessed value, Save Our Homes benefits, other exemptions and future millage. As an illustration only, raising the non-school exemption from $51,411 to $150,000 adds $98,589 of exempt value, which at a hypothetical 10-mill non-school rate would be about $986 a year. Actual Collier and Lee figures will differ.
Frequently Asked Questions
Does a buyer have to close on a Florida home by December 31, 2026 to qualify for the larger Amendment 3 exemption?
Not necessarily. As written, the amendment ties eligibility to being a permanent Florida resident as of December 31, 2026. County property appraisers have explained that a person who establishes residency by that date would be eligible for the larger exemption when they later buy a home and apply for homestead. Closing before year end matters separately because existing law requires ownership and residence on January 1 to claim homestead for that tax year.
Does Amendment 3 reduce school property taxes?
No. Only the first $25,000 of a homestead’s assessed value would remain exempt from school taxes, as under current law. The larger exemption applies to county, municipal and special district levies, so most homestead owners would still receive a tax bill that includes school taxes.
Can an LLC-owned home receive the Florida homestead exemption?
Generally, no. Florida’s homestead exemption is available to natural persons who own and permanently reside on the property, so a home titled to an LLC typically does not qualify. Revocable trusts can often hold homestead property if the trust terms meet Florida’s requirements, which is why vesting should be reviewed before closing.
What happens if Amendment 3 does not pass?
Current law stays in place. Qualifying homeowners would continue to receive up to $51,411 in homestead exemptions for 2026, with the inflation-adjusted portion updating in future years, and the non-homestead assessment cap would remain at 10%. The January 1 ownership requirement and March 1 filing deadline for homestead would apply either way.