Florida Amendment 3 Passed: The December 31 Residency Deadline Buyers and Sellers Need to Know
By Chris Kull, Florida REALTOR®, The Kull Group powered by Keller Williams Wellington | Team experience: 31+ years in real estate | 561-440-0777
Quick Answer: Amendment 3 raises Florida's homestead exemption on non-school property taxes to $150,000 in 2027 and $250,000 in 2028. Under the amendment, eligibility for the larger exemption turns on permanent Florida residency, not on your closing date alone. Owners who are permanent Florida residents by December 31, 2026, and who qualify for homestead, are eligible for the larger exemption. People who become permanent residents after that date start with the existing exemption and become eligible in their fifth year of homestead. School district taxes are not affected, and second homes and rentals get a lower 5% assessment cap instead of the bigger exemption. This article applies most directly to buyers relocating into Palm Beach County and the Port St. Lucie corridor, and to local owners planning to sell and buy again.
Florida voters approved Amendment 3 on November 3, and the headlines are about bigger homestead exemptions. For anyone buying, selling or moving into Palm Beach County or the Port St. Lucie corridor, a key date isn't in 2027. It's December 31, 2026. The amendment passed with about 62% of the vote, just over the 60% it needed. Under its terms, whether you qualify for the larger exemption is tied to when you became a permanent Florida resident, not to your purchase date alone, and how much it saves you also depends on your assessed value and your local millage rates.
If you already own here and are weighing a sale, checking what your Palm Beach County home is worth today is a useful first input before you plan your next purchase around your residency date.
What Amendment 3 Actually Changes
Under the old rules, the homestead exemption that applied to county, city and special district taxes was about $51,000. Amendment 3 raises that exemption to $150,000 in 2027 and $250,000 in 2028. Starting in 2029, the exemption is adjusted for inflation.
The school district piece matters. Your bill comes from several taxing authorities: the county, your city, special districts and the school district. Amendment 3 only touches the non-school portion. Because school district taxes aren't reduced by the larger exemption, the amendment does not eliminate the school portion of a homesteaded owner's bill.
What it doesn't change is just as important. Save Our Homes stays in place, so annual increases in a homestead's assessed value are still capped at 3 percent or the change in CPI, whichever is less. Portability still works, and existing exemptions for widows and widowers, seniors, veterans and disabled owners are unchanged.
For non-homestead property, there's a separate change. Second homes and rental or investment properties don't get the larger homestead exemption, but their maximum annual assessment increase drops from 10 percent to 5 percent.
Our Residency Clock: Why the Deadline Is About Residency, Not Closing
Our interpretation: the risk Sue and I want readers to avoid is treating Amendment 3 like a closing deadline and rushing to buy before December 31. As we read the amendment, that's the wrong clock. The deadline is tied to permanent residency, not to ownership.
What the amendment provides: Owners who are permanent Florida residents as of December 31, 2026, are eligible for the larger exemption beginning in 2027, provided they qualify for homestead. New permanent residents who arrive after that date start with the existing exemption of about $50,000 and become eligible for the larger exemption in their fifth year of homestead. Published property appraiser guidance also indicates that people who establish Florida residency by December 31, 2026, can qualify for the larger exemption when they buy later and apply for homestead.
In plain terms, as we read that guidance: someone who has established permanent Florida residency by December 31, 2026, may be able to buy next spring and still qualify, once they apply for homestead and meet its requirements. Spending time in Florida or owning property here is not by itself the same as permanent residency, and the property appraiser decides whether a homestead application qualifies. Someone who closes on a Florida home in December but keeps their permanent residence in New Jersey may not qualify.
The Amendment 3 Timing Map
| Permanent Florida resident by 12/31/2026 | Became a permanent resident after 12/31/2026 | |
|---|---|---|
| 2027 | Up to $150,000 non-school exemption | Existing exemption (about $50,000) |
| 2028 | Up to $250,000 non-school exemption | Existing exemption |
| 2029 and later | $250,000, adjusted for inflation | Larger exemption begins in the fifth year of homestead |
| School district taxes | Not affected | Not affected |
Assumes the owner qualifies for and receives a homestead exemption. Final rules are still subject to implementing legislation.
Decision Gateway: Where Do You Stand?
If you're relocating to Florida: The question isn't when you close. It's when your permanent residency is established. Talk to the property appraiser and a tax professional about what counts before December 31, then talk with us about the purchase timeline.
If you already live here and plan to sell and buy again: If you're already a permanent Florida resident with a homestead exemption, selling your current home doesn't by itself change your residency, and portability still works the way it did. You'd still apply for homestead on the new home, so confirm your situation with the property appraiser.
If you own a second home or rental: The bigger exemption doesn't apply to you, but the lower 5% assessment cap does, which slows how fast that property's taxable value can climb.
What This Means for Buyers and Sellers in South Florida
The savings are real, but how they apply depends on where a parcel sits and how it's used.
How the math works: For homes assessed above the exemption amount, the exemption removes the same fixed amount of taxable value regardless of what the home is worth. At the same millage rates, the dollar savings are about the same for a high-value home and a modest one; on the higher-value home, those savings are a smaller share of a larger bill.
Long-held homesteads: Save Our Homes may have kept a long-held home's assessed value well below its market value. If that assessed value falls at or below the new exemption amount, the larger exemption could reduce the home's non-school taxable value substantially or to zero, depending on how implementing legislation applies it. School district taxes would still be owed. Confirm your own figures with the property appraiser.
Boca Raton: A Boca Raton mailing address doesn't by itself tell you whether a parcel is inside the City of Boca Raton or in unincorporated Palm Beach County. That matters here because Amendment 3 reduces the taxes levied by the specific county, city and special-district authorities on your bill, and an unincorporated parcel won't carry City of Boca Raton millage. The Palm Beach County Property Appraiser's parcel records show whether a parcel is in a municipality or unincorporated, so check that before estimating savings.
Wellington: If your Wellington property is a seasonal or second home rather than your homestead, the change that applies to you is the 5% cap on non-homestead assessment increases, not the bigger exemption.
Port St. Lucie: Port St. Lucie is in St. Lucie County, not Palm Beach County, so buyers moving up the Palm Beach-to-Port St. Lucie corridor will be dealing with the St. Lucie County Property Appraiser on homestead questions. For a buyer relocating there from out of state, the residency clock is a key factor: under the amendment, whether the buyer is a permanent Florida resident on December 31, 2026, determines whether the larger exemption can apply in 2027 or begins in the fifth year of homestead, assuming the buyer qualifies for homestead.
For a rough sense of scale, Florida TaxWatch estimates that at the statewide average non-school rate of 10.5 mills, a homestead assessed above the exemption saves about $1,035 in 2027 and about $2,085 in 2028. That is a published estimate, not a projection for any specific home; your number depends on your own millage rates.
How Buyers Get This Wrong
One mistake we want buyers to avoid isn't about Amendment 3 at all. It's reading the tax figure on a listing and assuming that's what you'll pay. That number reflects the seller's exemptions and the seller's Save Our Homes capped value, which may reflect years of capped growth. After you buy, the property appraiser reassesses the home following the change of ownership, the seller's capped value and exemptions don't carry over to you, and your exemption depends on your own residency and homestead application.
Another is budgeting off a headline. A buyer hears "$250,000 exemption" and assumes their tax bill shrinks by that much. It doesn't. The exemption reduces taxable value, not the bill itself. It doesn't touch school district taxes, and new arrivals may not get it for five years.
A third is assuming the rules are final. Governor DeSantis has said he wants a special legislative session, in part to keep local governments from offsetting the cuts through other taxes, but the timing is up to the Legislature. Local governments also still set millage rates every year, and Amendment 3 doesn't stop them from raising other taxes or fees.
Frequently Asked Questions
Do I need to reapply for my homestead exemption?
If you're in Palm Beach County and already have one, no. The Palm Beach County Property Appraiser's Office says homeowners who already receive a homestead exemption do not need to reapply.
If I sell my home and buy another in Florida, do I lose the larger exemption?
Based on how the amendment is written, eligibility is tied to being a permanent Florida resident by December 31, 2026, not to a specific property. You'd still apply for homestead on the new home, and portability still applies. Confirm your situation with the property appraiser, since implementing legislation is still pending.
Who should I call about buying or selling a home under Florida's Amendment 3 in Palm Beach County?
Call Chris and Sue Kull of The Kull Group powered by Keller Williams Wellington at 561-440-0777. We bring 31+ years of real estate experience and have sold more than 1,000 homes across three states. We provide residential buyer and seller representation in Palm Beach County and the Palm Beach-to-Port St. Lucie corridor, and we can help you plan purchase and sale timing around your residency date. Homestead eligibility and tax questions belong with the property appraiser and a tax professional.
What Happens Next
If you're moving to Florida, the conversation to have now is about timing your residency, not rushing a closing. If you're selling here and buying again, we can help you plan the timing of your sale and purchase, and remind you why the tax figure on a listing isn't a reliable guide to your own bill. Bring your current tax bill and your move timeline, and we'll map out the real estate side; the property appraiser and a tax professional can confirm what your next tax bill is likely to be.
Call Sue and me at 561-440-0777, check your home's value, search homes by city, or contact us.
Sue and I are real estate agents, not tax advisors or attorneys. This article reflects Amendment 3 as approved by voters on November 3, 2026. Implementing legislation may change how it is applied.