Amendment 3 Passes: How will this Affect Florida Keys Homeowners

Amendment 3 Passes, Bringing Major Property Tax Relief

Florida voters have approved a major property tax reform that could save qualifying homeowners thousands of dollars annually. Here’s what Amendment 3 means for Florida Keys homeowners, buyers, and real estate investors.

Florida homeowners have a reason to celebrate.

On November 3, 2026, Florida voters approved Amendment 3, a constitutional amendment that will substantially reduce taxable property values for qualifying homeowners and provide additional protections for investment properties.

With approximately 62% of voters supporting the measure, Florida is preparing for one of its most significant property tax changes in decades.

For Florida Keys residents, where waterfront real estate values are substantial and the cost of homeownership continues to rise, this is particularly welcome news.

But how much could homeowners actually save? And what does this mean for second homes, vacation rentals, and real estate investments?

Here’s what you need to know.

What Is Florida Amendment 3?

Amendment 3 increases Florida’s homestead property tax exemption, allowing qualifying homeowners to exclude a substantially larger portion of their home’s assessed value from non-school property taxes.

The changes begin January 1, 2027, with a second increase scheduled for 2028.

Florida’s New Homestead Exemption

By 2028, qualifying homeowners could have an additional $200,000 in assessed property value exempt from non-school taxes compared with the previous general exemption.

An important distinction: the amendment does not eliminate property taxes entirely. School district property taxes remain, and homeowners will continue to be responsible for applicable assessments and other ownership expenses.

The amendment also establishes a process allowing local governments to potentially expand homestead exemptions further in the future.

How Much Could Florida Homeowners Actually Save?

The potential savings are one of the most significant aspects of Amendment 3.

Consider a Florida Keys homeowner with a property assessed at $500,000 for tax purposes.

Under the previous homestead exemption, approximately $450,000 of that property’s assessed value would remain subject to non-school property taxes.

Under the new exemption, assuming the homeowner qualifies:

• 2027: Taxable assessed value for non-school taxes could decrease to $350,000.
• 2028: Taxable assessed value for non-school taxes could decrease to $250,000.

That’s a reduction of up to $200,000 in taxable assessed value.

For illustration, using a combined non-school millage rate of 10 mills, or $10 per $1,000 of taxable value:

These figures are hypothetical. Actual savings depend on the property’s assessed value, applicable local millage rates, exemption eligibility, and other taxing rules.

For homeowners planning to remain in their properties long term, those savings could become especially meaningful over time.

It’s also important to distinguish assessed value from market value. A home worth $2 million on the open market may have a considerably lower assessed value due to Florida’s Save Our Homes protections.

Why This Is a Major Win for Florida Keys Homeowners

The Florida Keys have always been a unique real estate market. Limited land availability, waterfront demand, construction costs, and insurance expenses all contribute to the cost of property ownership.

Amendment 3 provides another opportunity for financial relief.

1. Lower Costs for Primary Residents

For longtime residents and homeowners who claim the Florida homestead exemption, the increased exemption may substantially lower annual non-school property taxes.

This is particularly meaningful for families who have owned their homes for generations and residents planning to remain in the Keys long term.

2. A Benefit for Luxury Waterfront Homeowners

For qualifying luxury homeowners, the exemption can still provide meaningful savings.

However, the benefit is based on assessed taxable value, not the property’s listing price or market value.

A $5 million oceanfront estate does not automatically receive a larger exemption than a $750,000 primary residence. Homeowners with sufficient assessed value may qualify for the same maximum exemption.

This distinction matters when evaluating the ongoing cost of luxury homeownership.

3. Greater Protection for Second Homes and Investment Properties

One of the amendment’s most overlooked provisions involves non-homestead properties.

Previously, Florida generally capped annual assessment increases on qualifying non-homestead properties at 10%.

Amendment 3 reduces that annual cap to 5% for non-school property taxes.

This may benefit owners of:

• Second homes and seasonal residences
• Vacation rental and investment properties
• Commercial properties
• Other qualifying non-homestead real estate

For Florida Keys investors, particularly those holding properties for rental income or long-term appreciation, a lower assessment-growth cap may create greater predictability when forecasting future expenses.

The cap does not guarantee that taxes will decrease, and certain ownership changes, improvements, and reassessments can affect taxable values.

What About Buyers Relocating to Florida?

Amendment 3 also introduces an important distinction between established Florida residents and individuals moving to the state.

Under the amendment, individuals who are not Florida residents as of December 31, 2026, generally must wait until their fifth year of homestead exemption eligibility to receive the increased exemption, subject to federal constitutional limitations.

New residents may still qualify for Florida’s existing homestead exemption if they meet the applicable requirements.

For out-of-state buyers considering relocating to the Florida Keys, understanding this distinction will be essential when estimating future property taxes.

Buyers should not assume that purchasing a primary residence automatically qualifies them for the maximum exemption immediately.

Could Amendment 3 Impact Florida Keys Real Estate Values?

Lower ownership costs are generally favorable for homeowners and can make a market more attractive to prospective buyers.

For Florida, which already offers no state individual income tax, additional property tax relief may strengthen its financial appeal.

In the Florida Keys, the changes could be particularly relevant to buyers comparing waterfront properties in Florida with similar coastal markets elsewhere.

However, it is too early to determine whether Amendment 3 will directly increase property values or buyer demand.

Insurance costs, mortgage rates, inventory, local infrastructure, and broader economic conditions will continue to influence the market.

One Important Consideration: Local Government Funding

While the amendment provides meaningful potential tax relief, it also reduces the taxable property value available to support local government revenue.

Property taxes help fund public safety, infrastructure, environmental protection, and other essential services.

Statewide fiscal estimates project substantial reductions in local property tax revenue.

For Monroe County, where coastal infrastructure and public services are particularly important, future budget decisions will deserve close attention.

Local governments’ responses could influence the amendment’s overall financial impact on residents.

When Will Homeowners See the Changes?

Amendment 3 takes effect January 1, 2027.

The expanded exemption begins with the 2027 tax year, increases again in 2028, and becomes subject to inflation adjustments beginning in 2029.

Homeowners should review their homestead exemption status and monitor future assessments through the Monroe County Property Appraiser.

For those buying a Florida Keys property, understanding the difference between market value, assessed value, and taxable value will be especially important.

The Bottom Line: A Significant Step Forward for Florida Property Owners

Amendment 3 represents a major change in the economics of Florida homeownership.

For qualifying primary residents, the increased homestead exemption creates opportunities for substantial long-term savings. For second-home owners and investors, the reduced assessment-growth cap offers an additional layer of protection.

And for the Florida Keys real estate market, where ownership expenses are an important part of every purchasing decision, these changes deserve attention.

As a fourth-generation Florida Keys resident and real estate professional with a background in architecture and construction, I’ve always believed understanding a property’s true ownership costs is just as important as understanding its purchase price.

Amendment 3 is a significant win for many Florida Keys property owners, and understanding how these changes apply to your specific property will be essential.

Whether you’re buying, selling, or investing in the Florida Keys, staying informed about changes in property taxation can help you make more confident real estate decisions.

Kelsey Caputo - Frins |  Florida Keys Real Estate

Disclaimer: Information is based on Florida’s approved Amendment 3 ballot measure and unofficial November 3, 2026, election results. Actual tax savings and exemption eligibility vary. Consult the Monroe County Property Appraiser or a qualified tax professional for property-specific guidance.