The recent passage of Florida’s Amendment 3 will lower property taxes and could spur some homeowners to upsize their residences. 

Under the terms of the constitutional amendment, which was approved with 62% of the vote (60% was required for passage), the non-school homestead exemption was expanded from $25,000 to $150,000 beginning in 2027 and to $250,000 beginning in 2028. In 2029, the exemption will be indexed to inflation. Property taxes related to schools were unchanged. 

In Miami-Dade County, the average reduction in property taxes will be $515 in 2027 and $1,037 in 2028, according to Florida TaxWatch. In Broward County, the reductions will be $581 and $1,171; in Collier they will be $339 and $683; and in Palm Beach County they will be $470 and $946. 

The new exemptions do not apply to homeowners who were not Florida residents as of Dec. 31. They will receive the existing $25,000 exemption for the first five years of their homestead qualifications, after which the increased exemption begins. 

Existing homeowners are obviously the biggest beneficiaries of the expanded exemption. Those who have put off moving into larger homes because of property taxes and interest rates could finally take the plunge, said Chris Wands, founder of The Wands Team at Douglas Elliman. 

“What’s interesting is that this could give the middle market a boost, not just the luxury segment,” Wands said. “Lower ownership costs could encourage more families to make that next move, which in turn could stimulate activity across different price points. But I wouldn’t expect every homeowner to benefit equally, and a lot will depend on how the changes are implemented.” 

Because of the five-year waiting period for new residents, Wands does not expect the amendment to spur a significant migration from other states. Rather, the amendment is just one more piece of Florida’s value proposition, which includes no state income tax and the weather. 

The amendment could increase competition for homes, particularly luxury properties, Wands said.  

“But I wouldn’t expect an overnight surge,” he said. “This is one more factor that could influence decisions, not something that’s going to completely change the market on its own.”