Florida Amendment 3 Explained: Pros, Cons, and FAQ's
On November 3, Florida voters will decide on Amendment 3, the biggest change to Florida property taxes in decades. If you own a home in Key West or anywhere in the Florida, or you're thinking about buying here, this one affects you.
I've had this conversation with a lot of clients over the past few weeks, so I want to lay it all out in one place: what Amendment 3 does, the honest case for it and the honest case against it so that you walk into the voting booth you know exactly what you're voting on.
What Is Florida Amendment 3?
Amendment 3 is a proposed change to the Florida Constitution. Its official ballot title is "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments." Like every constitutional amendment, it needs at least 60% of the vote to pass.
Here's what it would do:
Raise the homestead exemption. If you live in the home you own full time, $150,000 of its assessed value would be exempt from non-school property taxes in 2027, rising to $250,000 in 2028. School taxes are not affected.
Open a path to eliminating homestead property taxes. The Legislature would have to create a process that lets counties and cities raise that exemption all the way up to a home's full assessed value. There's no deadline, no plan to replace the lost money, and no further statewide vote required.
Lower the cap on non-homestead property. Second homes, rentals, vacation rentals, and commercial property can currently see their assessed value rise up to 10% a year. Amendment 3 cuts that to 5%.
Add a waiting period for new residents. People who aren't Florida residents by December 31, 2026 would get the current exemption first and the larger one starting in their fifth year, "to the extent permitted by the U.S. Constitution." A similar waiting period was struck down by the Florida Supreme Court in the 1980s.
Statewide, economists estimate Amendment 3 would reduce local government revenue by about $5 billion in the first year and up to $12 billion a year once fully in place. That estimate doesn't include the cost of eliminating non-school homestead taxes entirely.
What Amendment 3 Means for the Florida Keys
The Keys are a special case, and the local numbers tell a more nuanced story than the statewide headlines.
The state's Office of Economic and Demographic Research originally projected that Monroe County would lose about $9 million in revenue in the first year and $17.5 million in the second. Then Monroe County Property Appraiser Scott Russell ran his own projections using current certified values. His numbers show county revenue still growing slightly, by about $287,000 in the first year and $1.52 million cumulatively by the second. Monroe is one of only two Florida counties where assessed values wouldn't decrease under Amendment 3.
That's real good news, but it isn't the whole picture:
Costs are still rising faster. County Administrator Christine Hurley noted the county typically sees about $12.5 million a year in expense increases for personnel, contracts, and inflation. Revenue that barely grows can't cover that.
One district takes a direct hit. The appraiser's analysis found that taxable value would fall in the District 1 Lower and Middle Keys Fire and Ambulance taxing district.
Cuts and new fees are already on the table. County commissioners have discussed paid parking at parks, freezing employee raises, consolidating offices, and a possible one-cent sales tax for fire and emergency medical services on the 2028 ballot. Commissioner David Rice summed it up: "This is not going to be pretty."
For a full-time homeowner, the savings can be significant. One local example showed the county portion of a homesteaded property's tax bill dropping from about $2,269 to about $1,252. Your own number depends on your home's assessed value, and the Florida TaxWatch resource center has a calculator by county and city.
The Pros of Amendment 3
There is a real case for voting yes, and I want to give it a fair hearing.
Real savings for full-time homeowners. For many Floridians, the 2028 exemption would cut the local portion of their tax bill by well over $1,000 a year. If your assessed value is $250,000 or less in 2028, you'd pay no non-school local property taxes at all.
Help for longtime locals. In a place as expensive as the Keys, lower taxes can help the people who keep this community running stay in the homes they already own.
More predictable costs for second-home, rental, and business owners. A 5% cap instead of 10% means taxable value grows more slowly. That makes long-term ownership easier to budget, and it could ease pressure on rents.
The Monroe County hit is smaller than feared. Based on the property appraiser's projections, the Keys would be spared the deep revenue drops some counties face.
Broad support. The governor, the Republican Party of Florida, and Florida Realtors all back the amendment as affordability relief.
The Cons of Amendment 3
The case against is just as real.
No plan to replace the money. Property taxes are the main recurring revenue source for local services like fire, EMS, law enforcement, parks, and libraries. The amendment cuts that revenue without saying how to replace it.
An open-ended path to full elimination. Once the process exists, local leaders could raise the exemption all the way up without another statewide vote.
Costs shift to other people. When property tax revenue drops, the gap usually gets filled with new fees, sales taxes, or cuts. Sales taxes and fees land on renters, workers, and visitors, not just homeowners.
Uneven treatment. Non-homestead owners only get the lower cap, while homesteaded neighbors get the large exemption. People who move here after 2026 could pay more than their neighbors in nearly identical homes for years.
Likely legal challenges. The five-year waiting period looks a lot like a rule courts have already struck down, which means uncertainty for buyers relocating to Florida.
It's in the constitution. If the results don't work as planned, fixing a constitutional amendment takes another 60% statewide vote.
Opponents include many local governments. The Florida Democratic Party and many cities and counties oppose it, warning about cuts to essential services.
Frequently Asked Questions About Amendment 3
When is the vote on Florida Amendment 3?
Election day is Tuesday, November 3, 2026. The amendment needs at least 60% yes votes to pass.
When would Amendment 3 take effect?
If it passes, the $150,000 exemption would apply in 2027 and the $250,000 exemption in 2028.
Does Amendment 3 lower school taxes?
No. The larger exemption only applies to non-school taxes.
I own a second home or vacation rental in Key West. Does Amendment 3 help me?
You wouldn't get the larger homestead exemption. You would benefit from the lower 5% cap on yearly assessment increases.
I'm moving to the Florida Keys next year. Would I get the full exemption?
Under the amendment, people who aren't Florida residents by December 31, 2026 would wait until their fifth year for the larger exemption. That provision may be challenged in court.
Does Amendment 3 change Save Our Homes?
No. The existing Save Our Homes cap on homestead assessment increases stays in place.
How do I estimate what I'd save?
Use the Florida TaxWatch Property Tax Resource Center calculator, and look up your current bill on the Monroe County Property Appraiser's website.
Let's Talk
Whether you vote yes or no, I'm happy to walk through what Amendment 3 could mean for a home you own or one you're thinking about buying in the Keys.
Reach out anytime at krystal@kskeywest.com or call or text 305-394-4073. You can also follow along on Faceboobook & instagram @krystalsheehan.realtor
The views in this post are my own and do not represent eXp Realty. This post is general information, not legal, tax, or financial advice. Figures reflect published sources as of October 6, 2026 and may change.
Krystal Sheehan· Brokered by eXp Realty · Licensed in Florida
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