Why Buying a Florida Home in 2026 Could Mean Earlier Property-Tax Savings

Florida voters will consider Amendment 3 in November 2026. If approved, the amendment would significantly increase the homestead exemption applied to non-school property taxes.

For current Florida residents planning to purchase a primary residence, completing the purchase and establishing the property as their permanent home before the end of 2026 could allow them to benefit from the proposed changes sooner.

What Would Amendment 3 Change?

Florida’s current homestead exemption is generally up to $50,000 for non-school property taxes. If Amendment 3 passes, the exemption would increase to:

• Up to $150,000 beginning January 1, 2027

• Up to $250,000 beginning January 1, 2028

• Annual inflation adjustments beginning in 2029

The increased exemption would apply only to non-school property taxes. The exemption used to calculate school-district taxes would remain at $25,000.

Because a larger portion of the home’s assessed value would be exempt from qualifying taxes, eligible homeowners could see a meaningful reduction in their annual property-tax bills.

Why Buying in 2026 Could Be Beneficial

Florida homestead eligibility is generally determined based on ownership and permanent residency as of January 1.

A Florida resident who closes on a home in 2026 and establishes it as their permanent residence by January 1, 2027, could apply for the 2027 homestead exemption. If Amendment 3 passes and the homeowner meets all eligibility requirements, the proposed $150,000 non-school exemption could be reflected on the homeowner’s 2027 property-tax bill.

By comparison, someone who purchases and establishes a Florida primary residence after January 1, 2027, would generally not qualify for homestead on that property until the following tax year.

Purchasing before the end of 2026 could therefore provide two important advantages:

• Eligibility to apply for homestead for the 2027 tax year

• Earlier access to the increased exemption if Amendment 3 passes

Understanding the Five-Year Waiting Period

Amendment 3 also creates a separate rule for people who first become Florida residents on or after January 1, 2027.

Under the proposed amendment, these new residents would initially receive the existing exemption amount for non-school taxes. They would become eligible for the larger exemption beginning with their fifth year of receiving a Florida homestead exemption.

Current Florida residents as of December 31, 2026, would not be subject to that five-year waiting period. This means a person who is already a permanent Florida resident—and who purchases a qualifying primary residence—could receive the increased exemption once the property qualifies for homestead.

The key date for the five-year rule is when the homeowner establishes Florida residency, not simply the property’s purchase date.

Timing and Residency Both Matter

Simply closing on a home before December 31 does not automatically guarantee homestead eligibility. The property must be the owner’s permanent residence, and the homeowner must satisfy Florida’s homestead requirements.

For buyers hoping to qualify for the 2027 tax year, the safest approach is to complete the purchase, occupy the property and establish it as their permanent residence before January 1, 2027. The standard timely application deadline is March 1, 2027.

The Bottom Line

If Amendment 3 passes, purchasing and establishing a Florida primary residence before the end of 2026 could allow an eligible Florida resident to receive the larger homestead exemption beginning in 2027.

Waiting until after January 1 could delay homestead eligibility on the newly purchased property until the next tax year. Additionally, people who do not become Florida residents until January 1, 2027, or later could face a five-year wait for the increased exemption.

For Florida residents already considering a home purchase, completing that move before the end of 2026 could mean receiving valuable property-tax savings sooner.

This information is for general educational purposes and is based on the proposed amendment. Amendment 3 must receive at least 60% voter approval, and final eligibility will be subject to implementing legislation and official guidance.

The residency and exemption provisions are confirmed by the Florida Department of State and the Osceola County Property Appraiser. (constitutionalinitiatives.dos.fl.gov)