Voters really, really don't like property taxes

Florida voters decided to give themselves a significant tax break during the midterm elections. The property tax exemption, known as Amendment 3, was approved by a wide margin. This amendment doubles the homeowner tax exemption to $100,000 and will increase to $150,000 in 2027 and $250,000 in 2028. The exemption applies to people who were state residents in 2026; those who move to Florida after that must wait five years for a tax break.

For buyers next year, the larger exemption only applies after they've been in their homes for at least five years, with newer owners receiving a smaller break.

Real estate agent Christopher Wands noted that the exemption could inspire other states to follow suit. He described it as a "big coupon" that allows people to save money. This move comes as older homeowners, who are generally property tax payers, have been voting to give themselves tax breaks. State and local governments will need to make up the lost revenue by raising other taxes or cutting services like education or fire coverage.

The amendment is projected to cost Florida $4.9 billion in its first year and could become an $8.7 billion hit in its second year. While school districts, counties, and municipalities collected over $59 billion in property taxes in 2025, the reduction in homeowner revenue may shift the burden to newer homes, newer homeowners, renters, and commercial properties.

Jared Walczak, a senior fellow at the Tax Foundation, expects this move to encourage other states to consider similar tax breaks. However, Peggy Olin, CEO of OneWorld Properties, believes that changing tax burdens may not significantly impact Florida's home prices.