Amendment 3 Just Passed: What Florida’s Huge Property Tax Cut Really Means for Miami-Dade and Broward Homeowners

Voters approved the biggest homestead tax break in a generation. Here’s who wins, who waits, and what it means for your next move in South Florida real estate.

By Lazaro Sosa, Licensed Real Estate Broker, Southeast Real Estate Advisors | November 2026

On November 3, nearly 5 million Floridians did something rare. They voted to change the state constitution to cut their own property taxes. Amendment 3 passed with 61.98% of the vote, just clearing the 60% supermajority it needed.

For homeowners from Homestead to Hallandale Beach, and from Doral to Coral Springs, the headline is simple: a much bigger homestead exemption is on the way. But the fine print decides who wins big, who waits up to five years, and who gets a smaller break than the headlines suggest.

Here’s what changes, when it changes, and what it means if you own, buy, sell or invest in Miami-Dade and Broward.

Amendment 3 at a Glance

What changes	The new rule
Homestead exemption (county, city and other non-school taxes)	Up to $51,411 today. Rises to $150,000 in 2027 and $250,000 in 2028, then adjusts with inflation starting in 2029.
School taxes	No change. The existing $25,000 exemption still applies.
New Florida residents	Anyone without a permanent Florida residence as of December 31, 2026 starts with an exemption of up to $50,000 and reaches the full amount in their fifth year of exemption.
Non-homestead property (rentals, second homes, commercial)	Annual assessment increase cap drops from 10% to 5% starting January 1, 2027 (non-school taxes).
Save Our Homes cap	Unchanged: 3% or inflation, whichever is lower.
Portability	Homeowners who move can still carry up to $500,000 of their Save Our Homes benefit to a new homestead.
Local government spending	Property tax revenue must go to listed purposes, including public safety, schools, infrastructure, flood control, debt payments and employee pensions.
Effective date	January 1, 2027, with later steps in 2028, 2029 and 2030.

The shareable takeaway

Starting in 2028, the first $250,000 of a homesteaded property’s assessed value will be shielded from county and city property taxes. School taxes stay the same.

What It Could Mean for Your Tax Bill

The exemption reduces the taxable value used for county, city and other non-school levies. Because tax rates (millage) vary by city and taxing district across Miami-Dade and Broward, every bill will be different. Here’s a simple illustration using a homesteaded home with a $450,000 assessed value and a hypothetical 12-mill non-school rate.

Year	Non-school exemption	Taxable value (non-school)	Est. non-school tax
Today (2026)	$51,411	$398,589	$4,783
2027	$150,000	$300,000	$3,600 (about $1,183 less)
2028	$250,000	$200,000	$2,400 (about $2,383 less)

Illustration only. It assumes a fixed assessed value and a hypothetical millage rate and does not include school taxes, which are unchanged. Look up your actual numbers with the Miami-Dade Property Appraiser or the Broward County Property Appraiser.

The condo twist nobody is talking about

An exemption can’t reduce taxable value below zero. That means a homesteaded condo with an assessed value at or under $250,000 could see its county and city taxable value fall to zero by 2028, leaving mainly school taxes, HOA dues and insurance. With condo prices softening in parts of Broward, that’s a meaningful shift in the math for owner-occupants. It does nothing, however, for association fees or special assessments, which are often the bigger monthly burden.

The Winners

1. Long-time homesteaded owners. They get the largest and fastest benefit. Stacked on top of Save Our Homes, which has kept many assessed values well below market for years, the new exemption can cut the county and city share of their bill sharply.
2. Floridians who move up or downsize. Owners who already live in Florida keep the full exemption when they buy their next home, and portability lets them carry up to $500,000 of their Save Our Homes benefit with them.
3. Landlords and real estate investors. Rentals, second homes and commercial properties don’t get a homestead exemption, but the cap on yearly assessment increases drops from 10% to 5%. That means more predictable expenses and steadier cash flow, which matters if you qualify for financing based on rental income.
4. Buyers watching their monthly payment. Property taxes are part of your monthly housing payment through escrow. A lower tax bill means a lower payment, which can help with qualifying ratios and buying power over time.

Who Waits, or Gets Less

1. New arrivals to Florida. South Florida attracts a steady flow of buyers from New York, New Jersey, Illinois and Latin America. If you didn’t have a permanent Florida residence as of December 31, 2026, your non-school exemption starts at up to $50,000 and doesn’t reach the full amount until your fifth year of exemption.
2. Everyone, on school taxes. School district taxes are a large share of a typical bill, and Amendment 3 doesn’t touch them.
3. Foreign and second-home buyers. A vacation home or investment property in Miami Beach or Fort Lauderdale doesn’t qualify for a homestead exemption. These owners benefit only from the new 5% cap.
4. Renters. Renters don’t receive the exemption directly. Whether lower costs for landlords show up in rents is an open question.

The Debate Isn’t Over

Supporters argue that local property tax collections have nearly doubled in seven years and are projected to reach $83 billion by 2032. They say homeowners shouldn’t be taxed out of homes they’ve paid for, and that the amendment slows runaway assessments while protecting core services like schools, police and infrastructure.

Opponents call it a “tax shift,” not true savings. They warn that cities and counties may cut services such as parks, libraries and response times, or raise other fees to fill the gap. They also say undefined terms like “natural resource projects” could disrupt conservation and environmental funding.

For Miami-Dade and Broward, the real test comes in the next budget cycles, when local governments show how they’ll adapt. That’s worth watching if you’re budgeting for the next few years of ownership.

What Buyers Should Do Now

• Mind the December 31, 2026 date. If you’re relocating to Florida, when you establish permanent residency affects which exemption track you’re on. Talk with a tax professional or attorney about your situation now.
• File for homestead on time. The exemption isn’t automatic. In Florida, the filing deadline is March 1 of the year you want it to apply.
• Remember taxes reset when you buy. A seller’s low tax bill doesn’t transfer to you. The property is reassessed after a sale, so estimate your taxes on the purchase price, not the seller’s bill.
• Ask your lender about escrow. Your first escrow estimate is usually based on current tax figures. As your actual bill drops, your annual escrow review should adjust your payment.
• Don’t buy for the tax break alone. Price, insurance, HOA health and your rate still drive affordability far more than one line on the tax bill.

What Sellers Should Know

Lower carrying costs make homeownership more attractive in general, and that can help demand. But many of your buyers will be new to Florida and start on the $50,000 track. Smart listing agents will show buyers realistic tax estimates based on the buyer’s own situation, not the seller’s current bill.

What Investors Should Know

The 5% cap is the quiet win of Amendment 3. For owners of rental homes, small multifamily and commercial property, slower assessment growth makes long-term projections more reliable. Keep in mind that the cap applies to non-school taxes and that assessed value resets after a purchase. For investors who underwrite deals on rental cash flow, steadier tax expenses make the numbers easier to trust over time.

The Bottom Line

Amendment 3 is a real and growing tax break for Floridians who already call South Florida home. It is a slower one for newcomers and an indirect one for investors. If you’re planning to buy, sell or invest in Miami-Dade or Broward in 2027, run your numbers with the new rules in mind, and get guidance from professionals who know this market.

Frequently Asked Questions

When does Amendment 3 take effect?

January 1, 2027. The non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028, then adjusts with inflation starting in 2029.

Does Amendment 3 lower my school taxes?

No. School district taxes keep the existing $25,000 exemption.

I’m moving to Miami in 2027. Do I get the full exemption?

Not right away. If you had no permanent Florida residence as of December 31, 2026, your non-school exemption starts at up to $50,000 and reaches the full amount in your fifth year of exemption.

Do rental properties get a break?

Rental, second-home and commercial properties don’t receive the homestead exemption, but their annual assessment increase cap drops from 10% to 5% starting in 2027.

Will my monthly payment go down?

If your taxes are paid through escrow, a lower tax bill should reduce your escrow payment after your servicer’s annual escrow review reflects the new bill.

This article is for general information only and is not tax, legal or financial advice. Exemption amounts and rules may be affected by implementing legislation. Consult a tax professional and your county property appraiser about your specific situation.

Sources

• Ballotpedia: Florida Amendment 3, Homestead Tax Exemptions, Property Assessments, and Spending Restrictions Amendment (2026)
• South Florida Sun Sentinel: “Amendment 3: Florida voters approve reducing property taxes” (Nov. 3, 2026)
• NBC 6 South Florida: “Florida Amendment 3 passes. What the result means for homeowners”
• Tallahassee Democrat: Amendment 3 election results (Nov. 3, 2026)