Florida voters passed Amendment 3 on November 3, 2026. Starting with the 2027 tax year, it lowers non-school property taxes for homesteaded owners and slows how fast assessments can rise on investment property. School taxes do not change.
For Realtors, MLOs and brokers, this is a timely conversation to have with buyers right now, especially anyone deciding whether to close before year-end. Below is what changed, what it means in dollars, and how TAG Lending Group can help you keep deals moving.
Amendment 3 at a Glance
- 2027: Non-school homestead exemption rises to $150,000.
- 2028 and beyond: Non-school homestead exemption rises to $250,000, indexed to inflation.
- School taxes: Unchanged.
- Investors (non-homestead): Annual cap on assessed value for non-school taxes drops from 10% to 5%.
- Timing: Buyers who want the 2027 benefit should own and occupy the home as their primary residence by December 31, 2026, then file for homestead with their county property appraiser.
What a $500K Homesteaded Home Could Save
Today's homestead exemption is roughly $50,000. Only the increase above that is new savings. Here is an estimate for a $500,000 homesteaded home in four South and Central Florida counties:
| County | Avg. non-school mills | 2027 / yr | 2028+ / yr | 2028+ / mo |
|---|---|---|---|---|
| Miami-Dade | 11.74 | $1,174 | $2,348 | $196 |
| Broward | 13.72 | $1,372 | $2,744 | $229 |
| Palm Beach | 11.40 | $1,140 | $2,280 | $190 |
| Orange | 15.25 | $1,525 | $3,050 | $254 |
Lower property taxes mean a lower escrow payment, which can help a buyer's monthly budget and debt-to-income picture. Want the number for a specific client? Our Florida Amendment 3 savings calculator covers all 67 counties and any home value in about 30 seconds.
What Amendment 3 Means for Investors
Rentals, second homes and commercial property do not get the homestead exemption. What investors get is a tighter cap on how fast their assessed value can rise.
- Annual cap on assessed value (non-school taxes): 10% → 5%, starting January 1, 2027.
- First tax bills affected: November 2027.
- Resets on sale: The buyer starts at market value.
- School taxes: Still based on full market value.
Example: A $500K Rental in Miami-Dade
Assumes market value rises 8% a year and an average of 11.74 non-school mills.
| Year | Assessed at 10% cap | Assessed at 5% cap | Tax saved / yr |
|---|---|---|---|
| 2027 | $540,000 | $525,000 | $176 |
| 2028 | $583,200 | $551,250 | $375 |
| 2029 | $629,856 | $578,812 | $599 |
| 2030 | $680,244 | $607,753 | $851 |
| 2031 | $734,664 | $638,141 | $1,133 |
| 5-year total | $3,135 |
The gap widens every year the market outpaces 5%. In flat markets, the cap does not come into play.
Steadier Taxes, Steadier DSCR
For DSCR borrowers, property taxes are part of the expense side of the ratio. More predictable tax increases make it easier to plan cash flow on a hold. TAG Lending Group offers DSCR programs for LLC closings, 2–8 unit properties and foreign national borrowers.
How to Use This With Your Clients
- Primary-residence buyers: Walk through the estimated escrow savings and the December 31, 2026 occupancy timing.
- Move-up and relocating buyers: Remind them to file for homestead on the new property with their county property appraiser.
- Investors: Show how the 5% cap can limit tax growth on a long hold, and note that the assessment resets when a property sells.
Let's Work This Deal Together
TAG Lending Group partners with Realtors, MLOs and brokers across Florida. Call us at 305-503-8655 or run your client's numbers with the Amendment 3 calculator.
Estimates and examples are illustrative only and are not tax or legal advice. County averages: Florida TaxWatch (2025). City and special-district rates vary; confirm with your county property appraiser. Investor example assumes assessed value equals market value at the start, no sale or improvements, and flat millage. Not a commitment to lend. TAG Lending Group, LLC | NMLS #2329372 | Equal Housing Lender | Lender in FL, SC, TN, TX, GA, MI, NM, OH; broker only in CT, PA, NJ.
