Florida Voters Raise Homestead Exemption to $250,000

Florida just told its tax collectors to look at most owner-occupied homes through a much smaller window. Voters approved Amendment 3 with about 62% of the vote, according to the Florida Chamber of Commerce, lifting the homestead exemption on non-school taxes to $250,000 by 2028 ^[1][2].

Florida Realtors backed the measure, though reports differ on how much: WLRN cited $10 million in support, while Inman reported $18 million ^[3][4].

How the new rules work

• The non-school homestead exemption climbs from $50,000 to $150,000 in 2027, then tracks inflation after reaching $250,000 in 2028 ^[2][1].
• School taxes keep the existing $25,000 homestead exemption, so that part of the bill barely moves ^[1].
• Yearly assessment increases on non-homestead property, including rentals and commercial buildings, are capped at 5%, down from 10% ^[1].
• People who were not Florida residents on Dec. 31, 2026, wait until their fifth year of exemption for the bigger break ^[2].

But the cut leaves a hole: state estimates cited by the Florida Chamber put lost local revenue at $4.93 billion in fiscal 2027-28 ^[1]. Miami-Dade projects a roughly $385 million first-year loss, and Realtor.com economist Joel Berner said localities will likely lean on sales taxes or fees ^[2][4]. Cities and counties also keep their power to raise millage rates, which hit every property owner ^[1].

What it means for you

In CBS Miami's example, a $500,000 homestead would eventually be taxed as if worth $250,000 for local, non-school levies ^[2]. One mill equals $1 per $1,000 of value, so by our math the extra $200,000 exemption saves $200 a year per mill ^[1]. Landlords get no exemption, but by our math a $1 million assessment capped at 5% reaches about $1.16 million in three years, versus $1.33 million at 10%, if market values climb that fast. Lower taxes lift net operating income, and so the cap rate at a fixed price, unless local millage rises to fill the gap ^[1].

Zoom out

Voters in North Carolina and Louisiana also approved property tax limits or exemptions this week, according to Inman ^[4]. Florida's median bill is $3,839 a year, about $320 a month, the 15th highest among the 50 states, Berner said ^[4].