Florida voters approved Amendment 3 on November 3, 2026, introducing changes to property taxation that matter to homeowners, buyers, landlords, and real estate investors across Naples, Bonita Springs, and Estero. The amendment takes effect January 1, 2027, although implementation guidance and individual tax outcomes will require careful review.
What Does Amendment 3 Change?
The measure increases the homestead exemption for qualifying primary residences on non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. School property taxes are not covered by this expanded exemption. Eligibility depends on residency and homestead requirements.
For non-homestead properties—including many rental homes, second homes, and commercial properties—the amendment reduces the annual cap on increases in assessed value from 10% to 5% for non-school levies. This is a cap on assessment growth, not a guarantee that an owner’s tax bill can rise by no more than 5%.
What It Means for Full-Time Florida Homeowners
Eligible owners who use their property as their permanent residence may see a lower taxable value for non-school levies once the changes take effect. Actual savings will vary with assessed value, local millage rates, and other charges. Existing Save Our Homes protections and portability remain in place.
What Buyers Relocating to Florida Should Know
Residency timing matters. Under the amendment, people who were not Florida residents as of December 31, 2026, generally must wait until their fifth year of qualifying for a homestead exemption to receive the expanded benefit, subject to applicable constitutional requirements and implementation guidance. Buyers should verify their eligibility rather than assume a seller’s tax bill predicts their own.
What About Rental and Investment Properties?
Rental and investment properties generally do not qualify for a primary-residence homestead exemption. However, the new 5% annual cap on assessed-value increases for non-school taxes may affect their longer-term tax planning. Property taxes still depend on valuation, millage rates, and other assessments; buyers should model expenses with property-specific information.
Could Local Services Be Affected?
Supporters of Amendment 3 emphasize potential tax relief and predictability for property owners. Critics have raised concerns about reduced local government revenue and possible pressure on public services. The amendment also changes the permitted uses of certain county and municipal property tax revenues. The precise impact will depend on implementation and future local budgets.
Three Practical Steps for Southwest Florida Property Owners
- Review your property’s classification. Determine whether it is homestead or non-homestead and confirm current exemptions.
- Check with your county property appraiser. For properties in Naples, Bonita Springs, and Estero, consult the appropriate county office for official eligibility and assessment information.
- Plan with current documents. Compare assessed values, tax notices, HOA expenses, insurance, and financing costs before making a buying or selling decision.
Local Guidance for Naples, Bonita Springs & Estero
Every property and community is different. Whether you are preparing to buy, sell, or evaluate a rental investment, understanding the details behind a property’s ownership costs is essential.
Connect with the Manny & Maggie Team at Keller Williams to discuss your Southwest Florida real estate goals. Contact Maggie Castro at 239-287-3741, visit Instagram at https://www.instagram.com/maggiecastro_realestate/, or explore https://esterobonitanapleshomes.com/.
