Florida Amendment 3 Property Tax: What It Means for Flagler County Homeowners

Amendment 3 would raise Florida's homestead exemption on non-school property taxes to as much as $250,000 by 2028, and cut the annual assessment cap on non-homestead property from 10% to 5%. It needs 60% of the vote on November 3, 2026 to pass.

If you own and live in your home in Palm Coast, Flagler Beach, Bunnell, or anywhere in Flagler County, it could noticeably lower your property tax bill. It would also take a large bite out of the revenue that funds local services, and it treats people who move to Florida after 2026 very differently from current residents.

We're not here to tell you how to vote. Our job is to help clients understand how a change like this affects the value, cost, and timing of owning a home here. Here's what we know so far.

What Amendment 3 actually does

The official ballot title is "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments." If voters approve it, it takes effect January 1, 2027. Homeowners would first see it on the TRIM notices that arrive in August 2027 and the tax bills mailed that November.

1. A much larger homestead exemption on non-school taxes

Today, a homesteaded home in Florida gets a total exemption of about $51,411 in 2026: $25,000 that applies to all taxes, plus a second, inflation-adjusted exemption of $26,411 that applies to non-school taxes only.

For owners who are Florida residents by December 31, 2026, Amendment 3 would raise the non-school exemption to:

• Up to $150,000 starting January 1, 2027
• Up to $250,000 starting January 1, 2028
• Inflation-adjusted from January 1, 2029 onward

The amendment also lets the Legislature raise the exemption further by general law, up to the full assessed value of a home, without another statewide vote.

2. School taxes stay the same

The school portion of your bill keeps the existing $25,000 exemption. That matters, because school millage is a big share of a typical Flagler County tax bill.

3. A tighter cap for second homes, rentals, and commercial property

Non-homestead properties, like second homes, long-term rentals, vacation rentals, and commercial buildings, currently can't see their assessed value rise more than 10% a year for non-school taxes. Amendment 3 would cut that cap to 5%. It limits how fast the assessed value can climb, not the tax rate itself.

4. What doesn't change

• Save Our Homes stays in place. Homestead assessments can still rise no more than 3% or the rate of inflation, whichever is lower.
• Portability is unchanged, so you can still carry your Save Our Homes benefit to a new Florida homestead.
• Existing personal exemptions for seniors, veterans, widows and widowers, and people with disabilities stay the same.
• Non-ad valorem assessments (flat fees like solid waste and stormwater that appear on your tax bill) are not reduced by the bigger exemption.

What it could mean for your property tax bill

The math is simple to estimate. Your savings come from the extra exempt value, multiplied by your non-school millage rate (the county, city, and other non-school taxing districts on your bill).

A few things can change that number in real life:

• Your assessed value. Many long-time owners have a Save Our Homes assessed value well below market value. If your assessed value is under $250,000, the larger exemption can't save more than what's left of your taxable value.
• Millage rates. Local governments set their rates each year. If they raise rates to make up lost revenue, savings would shrink. Under the amendment's framework, local boards could still adopt a "rolled-up" rate, so it isn't guaranteed that millage stays where it is.
• Fees. Some local officials have suggested new or higher user fees to replace lost property tax revenue. Those fees aren't covered by the homestead exemption.

Statewide, the Florida Department of Revenue and the Office of Economic and Demographic Research estimate the measure would reduce local property tax revenue by about $4.96 billion in its first fiscal year, rising to roughly $11.9 billion a year once fully in effect.

If you're buying a home in Flagler County

This is the part of Amendment 3 we get asked about most, and the one with the biggest real estate impact.

If the amendment passes, the larger exemption is tied to when you became a Florida resident:

• Florida residents as of December 31, 2026 would be eligible for the $150,000 exemption in 2027 and the $250,000 exemption in 2028.
• People who become Florida residents on or after January 1, 2027 would start with a $50,000 non-school exemption. They would become eligible for the larger amount starting January 1 of their fifth year of homestead.

That's a meaningful difference for relocating buyers, and Flagler County gets a lot of them. Two buyers in identical homes on the same street could pay noticeably different county and city taxes for several years, depending on when each one established residency.

A few things to keep in mind:

• Timing matters, but don't rush a bad deal. If you're already planning a move, talk with a tax professional about what establishing residency before year-end would require. Buying a home alone doesn't make you a resident.
• The five-year rule could be challenged. Some critics, including at a recent Flagler forum, argue the waiting period for newcomers may face legal challenges. Nobody knows how that would play out.
• Look at the full monthly cost. Property taxes are one piece. Insurance, HOA or CDD fees, and non-ad valorem assessments can matter just as much. We break these down for every client before they write an offer.
• New construction buyers: taxes on a newly built home are based on the completed value, not the lot. Your first full-year bill may be much higher than what the builder's estimate shows. See our guide, Do I Need a Realtor to Buy New Construction in Palm Coast or Flagler Beach?

Frequently asked questions