Florida's Homestead Amendment: Why Timing Matters for Out-of-State Buyers

Update, November 4, 2026: Florida voters approved Amendment 3 on November 3, 2026, and it takes effect January 1, 2027. To qualify for the larger homestead exemption, you need to be a Florida resident by December 31, 2026. Here is how to establish Florida residency the year you relocate.

Thinking about making Florida your primary home? Waiting may cost you more than you realize.

Florida's homestead exemption increase, approved by voters as Amendment 3 on November 3, 2026, is big news for homeowners. Increasing the exemption from up to $50,000 today to as much as $250,000 by 2028 can make a real difference for qualifying homeowners. But for out-of-state buyers, there is one important detail that may be easy to miss: the five-year waiting period.

What Is Florida Amendment 3?

Amendment 3, called Save Our Homes from Excessive Property Taxes, increases Florida's homestead exemption for non-school property taxes.

Right now, the exemption is up to $50,000. It increases to up to $150,000 in 2027 and up to $250,000 in 2028.

Here's what that means in plain English: a larger homestead exemption means a larger portion of a primary Florida home's value may be excluded from certain property taxes. For homeowners who qualify, that can reduce annual ownership costs.

Why Timing Matters

This is the part I want out-of-state buyers to really understand.

Under Amendment 3, anyone who establishes Florida residency on or after January 1, 2027 does not immediately receive the full expanded homestead exemption. Instead, they begin with the current exemption and receive the additional benefit after maintaining Florida residency for five years.

That means two buyers purchasing similar homes may have very different tax outcomes depending on when they establish Florida residency.

This is why it is so important to talk through your plan before you buy. Homestead, residency, ownership structure, filing deadlines, insurance, and long-term costs all work together. When you understand the full picture early, you can make a much stronger decision.

What Should Buyers Do Next?

Florida voters approved it on November 3, 2026, and it takes effect January 1, 2027. Talk with your tax advisor about how it applies to you.

Still, this is a conversation worth having now if Florida is already on your radar. You do not need to be ready to buy tomorrow. Sometimes the smartest move is simply understanding your options before the timing matters.

If you are thinking about buying in Palm Beach County or making Florida your primary home, reach out today. Let's talk through your timeline and how you can position yourself to take full advantage of Florida's new homestead tax benefits.