Florida voters passed Amendment 3 with about 62% of the vote. If you’re buying a home in Florida in 2027, the change could lower part of your property tax bill. How much you could save depends on the home’s assessed value, where it’s located, and when you became a Florida resident.
I’m Riley, a Mount Dora area Realtor. I help people move to Lake County from Orlando and out of state, and property taxes come up a lot when we start comparing homes. Here’s how I’d think about the new exemption if you’re putting together a budget for a move to Mount Dora, Eustis, or Tavares.
What is Florida Amendment 3?
Amendment 3 changes Florida’s homestead exemption starting with the 2027 tax roll. If you own a home and use it as your permanent residence, you may qualify for a homestead exemption. The exemption lowers the amount of assessed value that’s subject to property tax. Think of it as taking part of the value off the table before the tax rate is applied.
Under the prior rules, qualifying homeowners could generally get up to $50,000 off their taxable value for non-school property taxes. The first $25,000 also applied to school property taxes. That distinction matters because a single tax bill can include charges from several taxing authorities.
How will Florida property taxes change in 2027?
The amendment increases the maximum homestead exemption for non-school property taxes on this schedule for homeowners who qualify for the larger exemption:
2027: Up to $150,000 of assessed value is exempt.
2028: Up to $250,000 of assessed value is exempt.
2029 and beyond: The exemption adjusts for inflation.
The school tax portion of your bill follows its own exemption rules. When you look at a property tax estimate, I’d ask to see the school and non-school amounts separately. That makes it easier to see which part of the bill the larger exemption can change.
How much could a Florida homeowner save?
A Mount Dora example
Let’s say you’re looking at a home in Mount Dora with an assessed value of $400,000. If the full $150,000 exemption applies in 2027, that leaves $250,000 of taxable value for non-school taxes in this simplified example. With the full prior $50,000 exemption, the same assessed value would leave $350,000 taxable for those taxes.
That $100,000 difference is a reduction in taxable value. To estimate the dollar savings, you’d apply the non-school tax rates for the home’s address to that difference. The school portion and any applicable assessments still need to be included when you budget for the full bill.
When we look at a listing, I also pay attention to how long the seller has owned the home. The current tax bill reflects the seller’s assessment and exemptions. A change in ownership can reset the assessed value, so I’d use an estimate for your purchase rather than plug the seller’s tax bill straight into your monthly budget.
Moving to Florida in 2027? Check the residency rule
If you’re moving from out of state, December 31, 2026 is the date to pay attention to. If you’re a Florida resident by that date and meet the homestead requirements for the property, you may qualify for the increased exemption without the new-resident waiting period.
If you aren’t a Florida resident by December 31, 2026, you can still qualify for a homestead exemption. Once you qualify, the exemption is up to $50,000 for non-school taxes and $25,000 for school taxes. Eligibility for the larger non-school exemption begins in your fifth year of receiving the exemption.
Say you move from out of state in 2027 and 2028 is your first year receiving the exemption. If you continue to qualify each year, 2032 would be your fifth year. If you already live in Orlando and are moving to Lake County, your move is within Florida. You’ll still want to check what you need to file for the new home and when.
What about second homes and investment properties?
A vacation home or rental generally falls under the non-homestead rules. Amendment 3 lowers the annual cap on assessment increases for non-homestead properties from 10% to 5% for non-school taxes.
That cap applies to increases in assessed value. Your total bill also reflects local tax rates and other charges, so budget using an estimate for the property, especially if you’re buying a home that’s changing hands.
How could Amendment 3 affect Mount Dora and Lake County?
If you’re choosing between Mount Dora, Eustis, and Tavares, I’d run the numbers for each address. Two homes with similar prices can have different tax bills depending on the taxing districts and assessments that apply. Even a Mount Dora mailing address can cover a property outside the city limits, so it’s worth checking the parcel before you assume a city tax rate applies.
If you’re still deciding where you want to land, my Mount Dora vs. Tavares comparison walks through what daily life feels like in each town. I’ve also put together a guide to Lakes of Mount Dora if you’re exploring 55+ communities.
Should you buy a Florida home before the end of 2026?
If a move is already in the works, it’s worth talking through your timeline. Closing on a home and establishing Florida residency are separate steps. If you’re buying near year-end, ask the property appraiser how the residency date, the January 1 homestead requirements, and the filing deadline apply to your situation.
I’d make the decision based on whether the home, move date, and full monthly payment work for you. If the numbers only feel comfortable with the largest exemption, get an estimate that reflects the exemption you can actually expect in your first year.
Final thoughts on Florida Amendment 3
Before you set your 2027 budget, confirm which homestead exemption you may qualify for, get a tax estimate for the specific address, and check when you need to file. That gives you a clearer picture of the monthly payment while you’re still comparing homes.
If you’re thinking about moving to Mount Dora, Eustis, Tavares, or anywhere nearby in Lake County, I’d love to help you get to know the local market, explore neighborhoods, and find a home that fits your lifestyle and budget. Get in touch with me here or call or text me at 407-558-8039.