Why the seller's tax bill misleads buyers
Florida's Save Our Homes rule limits how fast the assessed value of a homestead can rise: 3% a year or the rate of inflation, whichever is lower. An owner who bought ten years ago may be taxed on a value far below today's price. When you buy, the assessment resets to market value as of January 1 of the next year. That is why first-year bills often jump by thousands of dollars.
How the homestead exemption works in 2026
- The first $25,000 of assessed value is exempt from all property taxes, including school taxes.
- A second exemption of up to $26,411 applies to assessed value between $50,000 and $76,411, for non-school taxes only. The total homestead exemption for 2026 is $51,411.
- You must own and live in the home as your permanent residence on January 1 and apply by March 1.
- Rental and second homes get no homestead exemption. Their non-school assessed value can rise up to 10% a year.
What Amendment 3 would change
- The homestead exemption for non-school taxes rises to $150,000 in 2027 and $250,000 in 2028, then follows inflation.
- The $25,000 exemption for school taxes stays as it is.
- People who are not Florida residents on December 31, 2026 get the current exemption first and the larger one starting with their fifth year of exemption.
- The yearly cap on assessment increases for non-homestead property drops from 10% to 5%.
- It needs 60% of the vote. If it fails, current law stays in place.
Buying before the end of 2026
If the amendment passes, establishing Florida residency by December 31, 2026 decides whether you get the larger exemption in 2027 or wait until your fifth year. Talk to a Florida tax attorney or your county property appraiser about what counts as residency in your situation.
