If voters approve Florida Amendment 3, the state's homestead exemption for owner-occupied houses will rise from the current $50,000 to $150,000 in 2027. Then, it will rise to $250,000 in 2028.
Local municipalities and schools took in about $32 billion from property taxes in 2019. However, as Florida property values have risen, collections have as well. Last year, they took in just over $59 billion, an 85% increase.
In Pinellas County
How much will you save on your real estate taxes?
Your savings will depend on the municipality in which your homestead property is located. The higher the millage rate in your municipality, the more you will save.
Remember, the proposed increase in the homestead exemption does not reduce the school portion of the total millage rate. The school portion of the millage rate in Pinellas County is 6.273 ($6.27 per $1,000). To calculate your savings, reduce the total millage rate for your municipality by the school millage rate of 6.273.
See the chart below for examples
Will Homestead Portability stay in place if Amendment 3 passes?
According to the Pinellas County Property Appraiser, Amendment 3 does not eliminate, replace, or change Florida's existing portability provisions.
This means that if you move to a new primary residence in Florida, you can still transfer the accumulated tax savings (the difference between your home's market value and its capped assessed value) from your previous homestead to your new one, up to the maximum limit. You just have to establish your new residence by January 1 of the third year after you abandon your old homestead.
What about 2nd Homes and Investment properties?
Vacation homes, rental properties, and investment properties generally do not qualify for the newly proposed $150,000 or $250,000 homestead exemptions. Those increased fixed-dollar exemptions are strictly for a homeowner's primary residence.
However, Amendment 3 reduces the annual assessment cap on non-homestead properties from 10% to 5%. Under current law, the assessed value of these properties can increase by up to 10% each year for non-school tax purposes.
Note:
Amendment 3 applies to existing owners as of December 31, 2026. For buyers who purchase January 1st 2027 or later, the existing $50,000 exemption will apply
tied to inflation. New owners must complete 5 full years of residency/homestead exemption before stepping up to the full expanded exemption tier ($250,000).
My Take:An increase in the homestead exemption and the resulting reduction of Real Estate taxes could give yet another reason for existing owners not to sell, unless they take advantage of Homestead Portability. Low rates on existing mortgage loans, looming capital gains tax and the increase in interest rates have already created the “lock in effect” for many homeowners.
Mortgage Rates
Decline Further to 7.24%
The average 30-year fixed-rate mortgage declined this week, offering some relief to prospective homebuyers.
The 30-year fixed-rate mortgage averaged 7.32% as of October 22, 2026, down from last week when it averaged 7.40%. A year ago at this time, the 30-year FRM averaged 6.19%.
The 15-year fixed-rate mortgage averaged 6.68%, down from last week when it averaged 6.71%. A year ago at this time, the 15-year FRM averaged 5.44%.
