Good news for Florida homeowners!
On November 3, 2026, Florida voters approved Amendment 3, bringing significant changes to how property taxes are calculated across the state.
For anyone considering buying a home in Southwest Florida, including Sanibel, Captiva, Fort Myers, and Cape Coral, this is an important change to understand. While the amendment offers the potential for substantial property tax savings, the benefits depend on whether you are already a Florida resident, are moving to Florida, or are purchasing a second home.
Let’s break it down in simple terms.
What Is Amendment 3?
Amendment 3 increases Florida’s homestead property tax exemption, allowing eligible homeowners to exclude a larger portion of their home’s assessed value from certain property taxes.
The changes will be introduced gradually:
2027: Homestead exemption increases to $150,000 for non-school property taxes.
2028: Exemption increases to $250,000.
2029 and beyond: The $250,000 exemption will be adjusted for inflation.
One important detail: These increased exemptions apply to non-school property taxes. School district taxes will still apply under separate rules.
What Does This Mean for Homebuyers?
The biggest factor is whether you already qualify as a Florida resident.
If you already live in Florida:
Existing Florida homeowners who qualify under the amendment’s residency requirements may receive the expanded exemption beginning in 2027.
For many homeowners, this could mean meaningful savings on annual property taxes.
If you are moving to Florida:
New Florida residents will have a five-year waiting period before qualifying for the full expanded homestead exemption.
During those first five years, eligible buyers can still receive the smaller homestead exemptions available under the new rules, but they will not immediately receive the full $150,000 or $250,000 benefit.
This is especially important for buyers relocating from another state who are calculating the cost of homeownership.
If you are purchasing a vacation home or investment property:
The expanded homestead exemption does not apply to second homes, vacation properties, or investment properties that are not your permanent Florida residence.
However, Amendment 3 also reduces the annual assessment increase cap on qualifying non-homestead properties from 10% to 5%, excluding school taxes. This may provide some protection against future increases in assessed property values.
How Much Could Homeowners Save?
The savings will vary depending on your home’s assessed value, local tax rates, and eligibility.
Some statewide estimates suggest eligible homeowners could save approximately $1,300 annually in 2027 and $2,700 annually beginning in 2028.
Keep in mind that these are estimates, not guaranteed savings. Actual property taxes will depend on your specific property and local taxing authorities.
What About Buying a Home in Southwest Florida?
If you’re considering purchasing a home in Sanibel, Captiva, Fort Myers, or Cape Coral, Amendment 3 adds another important consideration to your real estate plans.
Before purchasing, it’s important to understand:
Whether the home will qualify as your primary residence.
Whether you qualify for the expanded homestead exemption immediately or must wait five years.
How the property’s assessed value compares with its purchase price.
What your estimated property taxes will be after purchasing.
A helpful reminder: The property taxes shown on a real estate listing often reflect the current owner’s exemptions and assessed value. Your property taxes after purchasing may be quite different.
The Bottom Line
Amendment 3 represents a major change to Florida’s property tax system and could offer meaningful long-term savings for homeowners.
For buyers, the key is understanding when you qualify for the benefits and how those savings fit into your overall cost of homeownership.
Whether you’re relocating to Southwest Florida, purchasing your retirement home, or making a move within the area, understanding property taxes before buying can help you make a more informed decision.
Thinking about buying or selling in Southwest Florida?
I’m always happy to help you navigate the local real estate market and understand the factors that may affect your next move.
Melanie Holaway | REALTOR®
John R. Wood Properties
Serving Sanibel, Captiva, Fort Myers, and Cape Coral