The excluded value, which is not taxed, is called the Homestead Exemption. Under the new rules, it will increase from $50,000 to $150,000 in 2027, and up to $250,000 in 2028. So, someone with a house worth $500,000 would be taxed as if it were worth half that much. Property taxes specifically earmarked for schools are not part of this change, and will remain at their previous rates.
The amendment also limited how quickly the taxable value of second homes and investment properties could increase each year.
But before you pack your bags and decamp to the Sunshine State in search of a lower bill from Uncle Sam, consider this: There is a five-year waiting period for most new residents of the state to receive the new, more generous exemption. Unless you can get to Florida before Dec. 31 (59 days after election day, if you’re counting), you will not get the exemption until your fifth year as a Florida homeowner.
Gov. Ron DeSantis has been banging the drum for property-tax cuts for the past year, but he wasn’t happy with the amendment the legislature ultimately came up with. According to CBS12, he thought it didn’t go far enough, he wanted school taxes cut as well, and he worried it wouldn’t reach the 60% threshold needed to pass — but it cleared that with two points to spare. Republican governor-elect Byron Donalds also backed Amendment 3.
A pull factor to the Sunshine State
The idea of eliminating property taxes in Florida has long garnered attention, fueled by comments from Governor Ron DeSantis and ongoing conversations among state lawmakers.
For homeowners — and would-be movers from higher-tax states — the concept is undeniably appealing.
Florida already stands out as one of the most tax-friendly states in the U.S., largely because it has no state income tax. That alone has made it a magnet for residents relocating from places like New York and California, where taxes take a toll on household budgets. Removing property taxes would take that appeal even further, potentially saving homeowners thousands of dollars annually.
However, property taxes are a cornerstone of how local governments in Florida operate. They fund public schools, emergency services, infrastructure and community programs. Eliminating them would create a revenue gap that would need to be filled some other way, whether through higher sales taxes, new fees or alternative funding models.
Who would benefit from the reduced property taxes
Florida already has systems in place that favor full-time residents — most notably, the Homestead Exemption. This benefit reduces the taxable value of a primary residence and caps annual increases, but it requires homeowners to establish permanent residency in the state. These kinds of protections are designed to prevent people from immediately moving in and taking advantage of tax breaks without truly committing to living in the state.
If property taxes were ever reduced or eliminated, similar guardrails could become a central part of the policy conversation. Lawmakers are looking for ways to ensure that long-time residents — rather than short-term or opportunistic movers — receive the greatest benefit. In a state experiencing rapid population growth, that is both politically and economically significant.
