If you’re planning a move to Sarasota or Lakewood Ranch, Florida’s Amendment 3 could meaningfully affect your property taxes. November’s unofficial election results show voters approved the measure, which takes effect January 1, 2027. But when you establish Florida residency matters.
Florida’s homestead exemption reduces the assessed value of your primary residence before calculating property taxes. For qualifying homeowners who establish permanent Florida residency by December 31, 2026, Amendment 3 increases the exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, followed by inflation adjustments beginning in 2029. The school-tax exemption remains $25,000. The first savings will appear on tax bills issued in November 2027.
What could the savings look like?
Imagine a qualifying Florida resident owns a home with an assessed value of $500,000. Assuming a combined non-school tax rate of 10 mills, or $10 per $1,000 of taxable value:
Tax year | Non-school exemption | Non-school taxable value | Non-school taxes |
|---|---|---|---|
2026 | $51,411 | $448,589 | $4,485.89 |
2027 | $150,000 | $350,000 | $3,500 |
2028 | $250,000 | $250,000 | $2,500 |
That translates to approximately $986 in annual savings in 2027 and $1,986 in 2028, compared with 2026. This illustration holds assessed value and tax rates constant; actual savings will vary. School taxes and non-ad valorem assessments, such as certain CDD charges, are separate from this calculation.
What if you move to Florida in 2027 or later?
You can still qualify for homestead, but the larger exemption generally begins in your fifth year receiving the exemption. During the first four years, the non-school exemption starts at $50,000, with inflation adjustments beginning in 2028. For example, if your first homestead exemption year is 2027, the larger exemption would generally begin in 2031. The clock follows your exemption years, not simply the date you move here.
The residency cutoff also does not require you to already own a home: an established Florida resident who rents and later purchases a qualifying primary residence can qualify for the larger exemption. A vacation home, however, does not qualify for homestead simply because you own property in Florida.
As you plan your purchase, have the county property appraiser confirm your eligibility and estimate the taxes for your situation. At The Suarez Group, we’ll help you factor those ownership costs into your Sarasota or Lakewood Ranch home search.
