Why Florida’s Property Tax Change Is Bad News for Renters

Florida voters will decide in November whether to approve a constitutional amendment that may benefit homeowners at the expense of renters. The proposed Amendment 3, which seeks to slash property tax bills for millions of homeowners, faces criticism from those who fear it will shift costs onto renters and local governments. The amendment, if approved, would raise the homestead exemption limit from $50,000 to $150,000 in 2027, and $250,000 in 2028.

While this could significantly reduce property tax bills for many homeowners, critics argue that the lost revenue would likely be offset by higher millage rates or increased taxes on commercial properties. This could lead to higher fees, reduced services, and rent increases for renters. Property taxes have risen by 62.8 percent from 2019 to 2024, even as the average property tax paid by homeowners remains below the national average.

Under Amendment 3, rental properties would not qualify for the expanded homestead exemption, but landlords could still benefit from the reduced assessment-growth cap for non-homestead residential properties. Despite the potential impact on renters, a recent survey found that 74 percent of voters support the amendment, even though support dropped to 55 percent when respondents learned it could reduce funding for local government services.