Northeast Florida homeowners to see expanded property-tax relief in 2027

Homeowners across Northeast Florida will see expanded property-tax relief beginning Jan. 1, 2027, after voters statewide approved Amendment 3 in the Nov. 3 election. The measure raises the homestead exemption for non-school taxes and tightens the cap on how much rental, second-home, and commercial property assessments can climb each year.

The amendment, backed by Florida Realtors, passed as homeownership affordability continues to strain household budgets in the region. "Florida voters chose meaningful property-tax relief this election," said Chuck Bonfiglio Jr., 2026 president of Florida Realtors. "We're proud to have stood with homeowners in support of Amendment 3 and look forward to continuing our work to make Florida more affordable to buy, own and keep a home. "

What the amendment does

Amendment 3 makes two core changes to Florida's property-tax structure. First, it raises the homestead exemption that applies to non-school property taxes—the portion levied by counties, cities, and special districts—to $150,000 in 2027 and $250,000 in 2028. Beginning in 2029, those amounts will adjust annually for inflation.

Under current law, primary-residence homeowners already enjoy a $25,000 homestead exemption for all property taxes, plus a second $25,000 exemption that applies to non-school levies on the home value between $50,000 and $75,000. The expanded exemption approved Tuesday will stack on top of that existing $50,000 base.

To qualify for the higher exemption amounts starting in 2027, a homeowner must establish Florida residency by Dec. 31, 2026. Those who become residents after that date will still receive the existing $50,000 exemption once they qualify for homestead status, but the larger benefit will not kick in until their fifth year of holding a homestead exemption, subject to federal constitutional requirements.

Second, the amendment lowers the annual assessment increase cap for non-homestead properties—rentals, second homes, vacant land, and commercial real estate—from 10 percent to 5 percent. That cap applies to the non-school portion of the property-tax bill. School taxes are unaffected.

The amendment leaves untouched Florida's Save Our Homes protection, which limits annual taxable-value growth to 3 percent for homesteaded properties, and the portability rule that allows owners to transfer up to $500,000 of accrued Save Our Homes benefit when they move to a new primary residence within the state.

Impact on homeowners and tax bills

For a primary-residence owner in Duval, St. Johns, Clay, or Nassau County, the expanded exemption will reduce the taxable value used to calculate county, city, fire-district, and other non-school levies. The exact dollar savings will vary by jurisdiction, because each local government sets its own millage rate.

As a general example, if a county's non-school millage totals 10 mills—a mid-range figure—an additional $100,000 of exemption translates to $1,000 in annual tax savings on that portion of the bill. By 2028, when the exemption reaches $250,000, the cumulative benefit grows further, again depending on local millage rates.

School taxes, which typically represent the largest share of a Florida property-tax bill, are not affected by the homestead-exemption increase. Homeowners will continue to pay school levies on their full assessed value minus the existing $25,000 exemption.

The timing provision—requiring residency by Dec. 31, 2026, to access the full benefit in year one—creates a near-term incentive for prospective residents weighing a move to Florida. For buyers already shopping in Northeast Florida's competitive housing market, establishing residency before year-end may represent thousands of dollars in tax relief beginning in just over a year.

Existing homeowners who already hold homestead exemptions in Duval, St. Johns, Clay, Nassau, Baker, Putnam, or Flagler counties and have been Florida residents will automatically qualify for the expanded benefit starting in 2027, provided their exemptions remain in place. Property appraisers in each county will administer the change; no new application is required for those already homesteaded.

What it means for landlords and investors

The 5 percent cap on non-homestead assessment growth will directly affect owners of rental properties, second homes, and commercial real estate across the region. Under the previous 10 percent cap, a rental home or office building could see its non-school taxable value jump sharply in a hot market, compounding year over year.

Slowing that growth rate to 5 percent annually may moderate property-tax increases for landlords, which can influence rental pricing and return on investment for income properties. In markets like St. Johns County, where rapid residential growth has driven sharp increases in property values, the tighter cap could provide a measure of predictability for owners of non-homesteaded parcels.

Commercial property owners—shopping centers, office parks, warehouses, and industrial sites—will also benefit from the lower cap on the non-school portion of their assessments. In Jacksonville's Southside, Baymeadows, and Northside logistics corridors, where commercial values have climbed alongside development activity, the 5 percent limit may reduce year-over-year volatility in operating costs.

It is important to note that the cap applies only to the non-school portion of the tax bill. School taxes on non-homestead properties remain subject to the existing assessment rules. The amendment does not change how new construction, improvements, or changes in property use are assessed; those events can still reset a parcel's taxable value to market.

Because the cap affects rental properties, the measure may also have indirect effects on the region's housing affordability debate. Lower property-tax growth for landlords could, in theory, moderate upward pressure on rents, though rent levels are determined by a wide range of market factors including supply, demand, interest rates, and operating costs beyond property taxes alone.

What local governments face

Counties, cities, and special districts across Northeast Florida will need to adjust their budget planning to account for the narrowed tax base created by the expanded homestead exemption. When more of a home's value is exempt from non-school taxes, the same millage rate generates less revenue—unless the taxing authority raises the rate or finds other revenue sources.

The amendment does not prohibit local governments from increasing millage rates to offset the loss, but doing so requires a public process. Florida's truth-in-millage (TRIM) law mandates advertised hearings whenever a government proposes to levy more tax revenue than the prior year's rolled-back rate would produce, adjusted for new construction.

In practice, this means city councils and county commissions in Duval, St. Johns, Clay, Nassau, and neighboring counties will face a trade-off: accept a revenue reduction from the same millage, or raise rates and defend that decision to constituents who just voted for tax relief. How each jurisdiction responds will determine whether the amendment's savings materialize fully at the household level or are partly clawed back through rate adjustments.

Special districts—community development districts, fire districts, library districts, and others—will face the same calculus. In fast-growing areas where CDDs finance infrastructure debt through non-ad-valorem assessments and ad-valorem levies, the interplay between the new exemption and debt-service requirements may require careful management.

The Florida Legislature and local governments will address implementation details in the coming months, including any necessary legislative changes, administrative adjustments, and guidance to property appraisers and tax collectors to carry out the amendment consistently statewide.

What happens next

The amendment takes effect Jan. 1, 2027. Between now and then, the Florida Department of Revenue, county property appraisers, and local taxing authorities will coordinate to update assessment and exemption systems.

Homeowners who do not currently hold a homestead exemption and wish to qualify for the expanded benefit in 2027 must establish legal residency in Florida by Dec. 31, 2026, and apply for homestead exemption with their county property appraiser by the statutory deadline, typically March 1 of the year in which the exemption is sought. For a 2027 exemption, that means applying by March 1, 2027, but residency must be established in 2026.

Property appraisers in Duval, St. Johns, Clay, Nassau, Baker, Putnam, and Flagler counties will issue updated guidance as the implementation date approaches. Homeowners with questions about eligibility or application procedures should contact their county property appraiser's office directly.

Local government budget cycles for fiscal year 2027–2028—which in most Northeast Florida jurisdictions begins Oct. 1, 2027—will be the first to fully reflect the amendment's revenue impact. City councils and county commissions will hold TRIM hearings in summer 2027 to set millage rates for that budget year.

Residents interested in how their city or county responds to the amendment can monitor proposed budgets and millage rates published on government websites and attend public hearings during the TRIM process. Florida law requires two advertised hearings before a final millage rate is adopted.

The broader affordability context

Amendment 3 arrives as Northeast Florida continues to absorb rapid population growth and rising home prices. St. Johns County ranks among Florida's fastest-growing counties, and the region's relative affordability compared to South Florida remains a primary migration driver. Property taxes, along with insurance costs and mortgage rates, are key components of the total cost of homeownership—one reason the amendment drew support from the state's real-estate industry.

How much relief individual households experience will depend on decisions made in dozens of local budget meetings across seven counties in the coming year. The amendment provides the framework for lower taxes; whether that framework translates to meaningfully smaller bills will be determined by the millage rates local elected officials choose to adopt and the trajectory of home values in a region where growth shows no sign of slowing.