Florida Amendment 3 could reshape property taxes for Jacksonville homeowners

Jacksonville-area homeowners and property investors will face a stark choice this November: a constitutional amendment that would significantly expand homestead tax breaks while capping annual tax increases on rental homes, second homes, and commercial buildings.

Amendment 3, which voters will decide on the November 3 general election ballot, would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments starting in 2029. The measure would also reduce the annual cap on assessed-value increases for non-homestead properties from the current 10% to 5%. Florida Realtors, the statewide trade association, announced its support for the amendment on August 23 and has launched a Vote Yes on 3 campaign. The organization is hosting a webinar on October 1 at 11:30 a. m. Eastern time to explain the provisions and address questions from real-estate professionals.

What's in Amendment 3

The proposed constitutional amendment contains two major property-tax changes that would affect homeowners and investors differently. For primary-residence homeowners, the homestead exemption for non-school property taxes would climb to $150,000 in 2027 and $250,000 in 2028, up from current levels. Beginning in 2029, the exemption would adjust annually for inflation. Homestead exemption is the amount of a home's assessed value that is not subject to certain property taxes—an increase means a smaller taxable base and a lower tax bill for qualifying owner-occupants.

For non-homestead properties—rental homes, vacation homes, commercial buildings, and investment real estate—the amendment would cut the annual cap on assessment increases in half, from 10% to 5%. Under Florida law, the Save Our Homes amendment of 1992 limits annual assessment increases on homestead properties to 3% or the rate of inflation, whichever is lower. Non-homestead properties have been capped at 10% since a 2008 constitutional amendment; Amendment 3 would tighten that limit.

Florida Realtors President Chuck Bonfiglio Jr., CEO Margy Grant, and a tax expert will lead the October 1 webinar, which is open to association members. The session is designed to help real-estate agents prepare for questions from buyers, sellers, and other property owners about how the proposed changes could affect their tax bills and property values. Registration is available through the association's website at VoteYesOn3. com.

How Jacksonville-area homeowners would be affected

For owner-occupants in Duval, St. Johns, Clay, and Nassau counties, the expanded homestead exemption would directly reduce the non-school portion of their annual property-tax bills. In Northeast Florida, homeowners pay a combination of school-district taxes, county taxes, city or municipal taxes, and special-district levies. The homestead exemption applies to the non-school taxes, which include county general funds, fire districts, libraries, and other local services.

The size of the benefit would depend on each homeowner's assessed value and the millage rates in their taxing districts. A higher exemption means more of a home's value is shielded from non-school taxes, leaving a smaller taxable base. For a homeowner whose property is assessed at $400,000, for example, increasing the exemption from the current level to $250,000 would exempt an additional portion of value from county, city, and district taxes—though the precise dollar savings would vary by location and millage.

The amendment's framers, according to Florida Realtors, aim to help homeowners stay in their homes amid rising property values. "We've spent years working to help people buy homes. But buying the home is only half the challenge. We also need to make sure families can afford to keep the homes they worked so hard to purchase," Bonfiglio said in announcing the Vote Yes on 3 campaign. In fast-appreciating markets like St. Johns County—one of Florida's fastest-growing counties—assessment growth has been a persistent concern for longtime residents, even with the existing Save Our Homes 3% cap on homestead properties.

The inflation-adjustment provision, set to begin in 2029, would index the exemption amount to prevent erosion of the tax benefit over time. Florida law already includes inflation adjustments for other exemptions and thresholds; linking the homestead exemption to inflation would make it a permanent feature tied to economic conditions.

What it means for rental housing and commercial property

The 5% cap on non-homestead assessment increases would alter the economics for landlords, second-home owners, and commercial real-estate investors across the region. Currently, if a rental home or apartment building sees its assessed value climb by 10% in a single year, the owner's tax bill rises accordingly—minus any other exemptions or credits. Cutting that cap to 5% would slow the rate at which tax bills can grow on investment and commercial properties, even in booming markets.

For Jacksonville's expanding rental market—driven by population growth, in-migration from higher-cost metros, and investors converting single-family homes to rentals—the cap change could affect operating costs and, by extension, rents. Property taxes are a major line item for landlords; limiting annual tax-bill growth could improve cash flow and reduce pressure to pass assessment spikes through to tenants. Whether that translates to lower rents, however, would depend on broader supply-and-demand dynamics, including the pace of new apartment construction in high-growth corridors like Nocatee, SilverLeaf, the Baymeadows area, and downtown.

Commercial property owners in markets like the Southside office corridor, the St. Johns Town Center area, and industrial sites near Cecil Commerce Center and JAXPORT would see similar effects. A tighter cap on assessment growth provides more predictability for budgeting and financing, particularly in districts where property values are rising quickly due to infrastructure investment or rezoning. Projects already operating on thin margins—small retail centers, older office parks—could benefit from slower tax-bill escalation, while high-value properties in appreciating locations would see the largest absolute dollar impact from the cap.

One open question is how local governments would respond to a revenue shift. If a larger share of residential value is exempt from taxation and non-homestead growth is capped more tightly, counties and cities may adjust millage rates to meet budget needs, spreading the tax base differently. Florida law requires that when a property appraiser certifies new assessment rolls, taxing authorities must calculate a rolled-back rate—the millage that would produce the same revenue as the prior year, excluding new construction. Any rate above the rolled-back rate is considered a tax increase and requires a public hearing. Amendment 3 would not change that process, but it would change the mix of taxable value feeding into it.

Impact on the Northeast Florida real-estate market

Real-estate professionals across the region are watching the amendment because it could influence both buyer behavior and property values. A higher homestead exemption makes owner-occupancy more financially attractive relative to renting, which could increase demand for starter homes and move-up properties in Duval and Clay counties. First-time buyers weighing monthly costs—mortgage, insurance, taxes—would see a lower ongoing tax obligation if they qualify for homestead, potentially expanding the pool of buyers who can afford a given home.

For investors, the 5% cap could make rental properties and second homes more appealing by reducing tax-bill volatility. In hot markets like St. Johns County, where property values have climbed rapidly, landlords have faced double-digit assessment jumps in some tax years under the current 10% cap. A 5% limit would smooth that growth, making cash-flow projections more stable and possibly supporting higher property valuations when investors model long-term returns.

The interplay between the two provisions—more generous treatment of homesteads, more predictable treatment of rentals—could also shape the single-family rental market. Institutional investors and small landlords alike have been active buyers in Jacksonville's Northside, Westside, and Arlington neighborhoods, converting owner-occupied homes to rentals. If the tax advantage of homestead ownership widens while rental-property tax growth moderates, the relative appeal of each tenure type shifts, though mortgage rates, insurance costs, and housing supply remain larger drivers of tenure choice.

Agents and brokers will likely field questions from clients about timing: should a buyer close before or after the exemption increase takes effect in 2027? The answer hinges on individual circumstances, but properties purchased and granted homestead exemption by January 1, 2027, would qualify for the higher exemption that year, assuming the amendment passes. Florida homestead exemption is granted as of January 1 each year to owners who held title and made the property their permanent residence by December 31 of the prior year, so the exact timing of a purchase and the filing of a homestead application with the county property appraiser would matter.

What happens next

Amendment 3 will appear on the November 3, 2026, general-election ballot. As a proposed amendment to the Florida Constitution, it requires approval by at least 60% of voters to take effect. If passed, the increased homestead exemption would begin with the 2027 tax year—reflected in bills mailed in late 2027—and rise again for the 2028 tax year. The 5% cap on non-homestead assessment increases would likewise take effect for the 2027 tax year.

Florida Realtors is encouraging its members to attend the October 1 webinar and to share information about the amendment with clients and the public. The association's Vote Yes on 3 campaign includes educational materials available at VoteYesOn3. com. The webinar will feature President Chuck Bonfiglio Jr., CEO Margy Grant, and a tax expert answering questions and addressing what the organization describes as myths and misconceptions about the proposal.

Voters seeking neutral information can consult the amendment's full text and financial-impact statement, which will be included in the voter guide mailed by supervisors of elections in each county. Local governments, property appraisers, and tax collectors in Duval, St. Johns, Clay, Nassau, and other Northeast Florida counties have not yet released estimates of the amendment's impact on their budgets or millage rates, though such analyses may become public as the election approaches.

Amendment 3 arrives as Northeast Florida grapples with the fiscal and social effects of rapid growth. St. Johns and Clay counties have seen home values and tax rolls swell, funding new schools and infrastructure but also straining longtime residents on fixed incomes. Jacksonville's consolidated government has worked to balance downtown revitalization and incentive programs with Northside and Westside neighborhood needs, while Nassau County navigates the transformation of rural land into master-planned communities like Wildlight. How voters weigh the competing interests of homeowner relief, landlord predictability, and local-government revenue will shape the region's tax landscape—and its housing market—for years to come.