Florida Amendment 3: the December 31 deadline, five myths and the real math

Watch the video: Florida Amendment 3: The December 31 Deadline Explained!

On November 3, Florida voters passed Amendment 3, the biggest property tax change this state has seen in decades. Just under 62% voted yes, and it needed 60%. Since election night, we've put three buyers under contract who were already planning their move, and every one of them asked the same questions about it.

Here's what I tell every client: there's one date buried in this amendment, December 31, 2026, and whether Florida is your primary residence on that date could change your property taxes by thousands of dollars. Not when you close. Not when you file. That one date.

If you just want to know whether to wait to buy, start with our post on what Amendment 3 means for buyers. This one busts the five myths we keep hearing and runs the actual numbers.

What passed, in 30 seconds

• Today: a homesteaded Florida home gets a $25,000 exemption off school taxes and about $51,411 off everything else (county, city, fire district, water management).
• Amendment 3 raises that non-school exemption to $150,000 in 2027 and $250,000 in 2028, then adjusts it for inflation.
• The school exemption stays at $25,000.
• Non-homestead property (second homes, rentals, commercial) gets a lower cap on assessment increases for non-school taxes, from 10% a year to 5%, starting with the 2027 tax roll.
• No change to Save Our Homes (the 3% cap on homestead assessment increases) or portability.

Myth 1: "I have to close on a house by December 31"

This is the one we hear most, and it's wrong in a way that matters. What counts is residency, not your closing date.

If Florida is not your permanent residence as of December 31, 2026, you get the smaller exemption, $25,000 for school taxes and up to $50,000 for non-school taxes, and you don't qualify for the full exemption until your fifth year of homestead. If Florida is your primary residence on December 31, 2026, you qualify for the full benefit when you buy and file for homestead, even if you're renting now and don't buy until next spring. Buy next spring, and your first homestead year is 2028, when the exemption is already $250,000.

What establishes residency? A Florida driver license, registering your vehicles here, registering to vote here, and filing a declaration of domicile with the county clerk. It has to be real: you actually live here. A Florida license while you're still living up north isn't residency, and claiming a homestead you don't qualify for can come back as back taxes plus penalties and interest. Changing your domicile can also affect your taxes in the state you're leaving, so talk to your CPA.

Myth 2: "My property taxes go down this year"

No. Your 2026 property tax bill is exactly what it was before the election. The Flagler County Tax Collector put out a notice saying just that: the changes take effect January 1, 2027, and 2026 bills are due as issued. The first savings show up on the 2027 tax bill, which arrives in late 2027. The full $250,000 exemption starts in 2028.

Myth 3: "Amendment 3 eliminates my property taxes"

It raises the exemption dramatically, but it doesn't eliminate property taxes, and the part it leaves alone is big. School taxes are untouched, and depending on where you live, they're roughly a third to half of your total bill. The amendment does direct the Legislature to work toward eventually eliminating homestead property taxes, but that's a direction, not a promise. Budget on what's actually law.

The math: what you actually save

The formula is simple: exemption × millage rate. One mill is $1 of tax per $1,000 of taxable value. The bigger the exemption and the higher your local rates, the more you save. These examples use 2026 certified millage rates for a homesteaded home.

$500,000 is right at the St. Johns County median of about $497,000, and $360,000 is right at the Palm Coast median. Same amendment, same exemption, but Palm Coast homeowners save almost twice as much, because their non-school rates are higher.

What missing December 31 costs

If you become a Florida resident after December 31, 2026, you're on the smaller $50,000 non-school exemption for your first four years of homestead. On the St. Johns County home, that's about $1,440 a year you don't get, or roughly $5,750 over four years. On the Palm Coast home, it's about $2,560 a year, more than $10,000 over four years. Same house. The only difference is the date you became a Florida resident.

Two caveats: 2027 and 2028 millage rates will be set by your county commission, city and other taxing districts, so they can change. And if your home is assessed under $250,000, your savings will be smaller, because the exemption can't exceed your home's value.

Myth 4: "My second home gets a break too"

No. The expanded exemption is homestead only: your owner-occupied, full-time primary residence. Second homes, rentals and commercial property don't get it. What non-homestead property does get is the lower cap on assessment increases, from 10% to 5% a year starting with the 2027 roll. The catch for buyers: when you buy a second home, it's reassessed at full market value, so the 5% cap does nothing in the year you buy. It only slows increases after that. It's real, but it isn't a tax cut.

Myth 5: "This is free money"

Here's the trade-off nobody puts in the celebration posts. The state's Revenue Estimating Conference projects Amendment 3 will cut local property tax collections by about $11.8 billion a year by the 2031-32 fiscal year. St. Johns County estimates its own property tax revenue loss at about $68 million in 2028, growing to about $192 million by 2032. Flagler County faces the same pressure.

That money paid for things you use: roads, fire service, stormwater and parks. Local governments are going to respond, and the most likely tools are fees: stormwater, fire service, solid waste, impact fees and permit costs. That's why we tell every buyer not to fall in love with the tax line. Look at your total monthly cost: taxes, insurance, CDD fees if there are any, and now a line item for fees that may grow. A $2,500 tax cut doesn't help if fees and insurance quietly eat it.

Your action list

1. If you're moving to Florida anyway, even if you're renting first, make Florida your real, full-time home before December 31, 2026: license, vehicles, voter registration and a declaration of domicile. Talk to your CPA first.
2. When you buy, file for homestead by March 1 of the year after you own and live in the home. It's free, it's one form, and people leave thousands on the table by forgetting.
3. Don't rush a purchase to chase this. The deadline is about residency, not buying. But if you're already moving, don't sleep on the paperwork.
4. Verify everything with your county property appraiser. St. Johns and Flagler both have teams that answer these exact questions, and the December 31 rules are new enough that you want it from the source.

Weighing St. Johns against Flagler? Read St. Augustine vs. Palm Coast. And if you want help with what this means for your county, price range and timeline, that's what we do. Start with our Homebuyer Journey.

Sources

• St. Johns County: Property Tax Amendment 3
• Volusia County Property Appraiser: Amendment 3
• WTXL: State economists estimate $11.8 billion annual cost to local governments
• Bilzin Sumberg: Florida's Amendment 3 residency deadline