Florida Amendment 3 Passed: What the Bigger Homestead Exemption Means for Your Mortgage
Florida's homestead exemption for non-school taxes jumps to $150,000 in 2027 and $250,000 in 2028. Here's how it could lower an escrowed mortgage payment.
- Florida voters passed Amendment 3 on November 3, 2026, with about 62% of the vote. It needed 60%.
- The homestead exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028, then grows with inflation.
- School taxes don’t change. They’re roughly 40% of a typical bill, according to Florida TaxWatch.
- If you have a mortgage with escrow, your monthly payment could drop once your new tax bill arrives, starting with bills issued in November 2027.
For Florida homeowners, the biggest housing news from election night wasn’t a mortgage rate. It was a property tax vote.
Amendment 3 is the largest change to Florida’s homestead exemption in years. If you own (or are about to buy) a home you live in, it can change how much of your monthly mortgage payment goes to taxes. Here’s how it works, who gets the full benefit, and a few things the campaign ads glossed over.
What Amendment 3 changes
| Item | 2026 (now) | 2027 | 2028 |
|---|---|---|---|
| Homestead exemption, non-school taxes | Up to $51,411 | $150,000 | $250,000 (inflation-adjusted from 2029) |
| Homestead exemption, school taxes | $25,000 | $25,000 | $25,000 |
| Yearly assessment cap on non-homestead property (non-school) | 10% | 5% | 5% |
The amendment takes effect January 1, 2027. The existing Save Our Homes cap on homestead assessment increases stays in place.
Who gets the bigger exemption
- Permanent Florida residents as of December 31, 2026 who qualify for a homestead exemption get the larger amounts starting in 2027.
- People who become Florida residents after that date get the existing exemption at first. The bigger exemption starts in their fifth year of having a homestead exemption. Some legal experts have questioned whether that rule will hold up, so watch for court challenges.
- Renters and landlords don’t get the homestead exemption. Rental and other non-homestead property instead gets a tighter 5% cap on yearly assessment increases for non-school taxes.
What it could mean for your mortgage payment
A homestead assessed at $300,000, using an illustrative non-school tax rate of 12 mills ($12 per $1,000 of taxable value). Your real rate is on your TRIM notice.
- 2026: non-school taxable value $248,589, tax about $2,983 (about $249/month in escrow)
- 2027: non-school taxable value $150,000, tax about $1,800 (about $150/month)
- 2028: non-school taxable value $50,000, tax about $600 (about $50/month)
That’s roughly $1,183 saved in 2027 and $2,383 in 2028, or about $99 and $199 a month off an escrowed payment. School taxes, figured on $275,000 of taxable value, stay the same.
Big caveat: local governments set their tax rates every year. Florida’s state economists estimated Amendment 3 would cut local property tax revenue by nearly $12 billion a year. Some cities and counties may raise rates, add fees or cut services. Your actual savings could be smaller than the math above.
How the savings reach your mortgage
If your lender pays your property taxes through escrow, your monthly payment doesn’t drop the day the law changes. It drops after your servicer’s yearly escrow review picks up the lower tax bill. Because the first lower bills go out in November 2027, many homeowners would see a payment change in their 2028 escrow analysis. You might also get an escrow surplus refund. Our escrow guide explains how that works, and our guide on property taxes and your mortgage covers the basics.
What this means for buyers and owners
- Thinking of moving to Florida? Establishing residency and a homestead by December 31, 2026 matters, but the homestead application deadline and rules are set by your county property appraiser. Check with them directly.
- Current owners: Make sure your homestead exemption is on file. Then plug a lower tax estimate into the mortgage calculator to see your future payment.
- Buyers comparing homes: A lower tax bill can help your debt-to-income ratio. Try the home affordability calculator and the DTI calculator.
- Don’t forget insurance. In much of Florida, homeowners insurance moves your payment as much as taxes do. See homeowners insurance explained.
What to watch next
- Official certification of the election results by the state.
- Summer 2027: local governments propose 2027 tax rates, and TRIM notices go out in August.
- November 2027: the first tax bills with the bigger exemption.
- Any lawsuits over the five-year wait for new residents.
FAQ
Did Florida Amendment 3 pass?
Yes. It passed on November 3, 2026, with about 62% of the vote in unofficial results, above the 60% needed.
Does Amendment 3 eliminate property taxes in Florida?
No. It raises the homestead exemption for non-school taxes. School taxes and other charges stay.
When will Florida homeowners see lower tax bills?
The change takes effect January 1, 2027. The first tax bills reflecting it go out in November 2027.
Will my mortgage payment go down?
If your taxes are paid through escrow and your tax bill falls, your servicer should lower your payment at its next escrow review. Local rate changes could shrink the savings.
Sources: Florida TaxWatch, Florida Property Tax Resource Center; WPTV, WFTV and CPA Practice Advisor election coverage (November 3–4, 2026); Florida Realtors (November 2026); WLRN, citing the Florida Revenue Estimating Conference. The 12-mill rate is an illustration, not an actual local rate. Results are unofficial until certified. This article is general education, not financial or tax advice. Keys & Coffee is not a lender.
Written by
Shivam Kaushik· IMSHIVA
Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee
Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.
Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.
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