Florida Homestead Exemption: What Amendment 3 Means for Miami Homebuyers in 2027

Buying a home in Miami involves a number of considerations. There’s choosing a neighborhood, finding a property that fits your needs and lifestyle, and figuring out what it will cost to buy the home and to own it in the long term. Property taxes form an important part of the ownership calculation, and there’s a new Florida law that could give homebuyers a bit of relief on that front.

On November 3, 2026, Florida voters approved Amendment 3 with about 62% of the vote, clearing the 60% threshold required to amend the state constitution. The measure expands Florida’s homestead exemption, which shields part of a primary residence’s assessed value from property taxes. Beginning in 2027, qualifying homeowners will receive a homestead exemption of up to $150,000 for non-school property taxes. The amount increases to $250,000 in 2028. The change does not apply to school property taxes.

For homebuyers exploring a purchase in Miami-Dade County, this change should be factored into your plans and into your budget. Read on to learn more about Amendment 3, who qualifies, and what you should consider as you prepare to purchase a home.

What is Florida Amendment 3?

In brief, Amendment 3 expands the homestead exemption for primary residences and reduces the annual assessment cap for most non-homestead properties. 

A homestead exemption reduces the portion of your home's assessed value subject to property taxes, lowering your tax bill. Under Amendment 3, qualifying homeowners will receive a larger exemption on their primary residence. Starting in 2028, a home assessed at $400,000 would have $250,000 exempt from non-school property taxes, leaving $150,000 subject to those taxes. School property taxes are calculated separately and are not affected by the amendment.

The amendment takes effect January 1, 2027, and includes three main changes:

• A larger homestead exemption: Increases to $150,000 in 2027 and $250,000 in 2028 for non-school property taxes

• A lower assessment cap: Reduces the annual assessment increase limit for most non-homestead properties from 10% to 5%

• New local revenue rules: Restricts how counties and municipalities may use property tax revenue

For buyers planning to make a Miami home their primary residence, the expanded exemption could lower the portion of assessed value subject to non-school property taxes, meaning lower costs associated with homeownership.

How much could Miami homebuyers save?

Your savings will depend on the home’s assessed value, your eligibility, and local millage rates. Miami-Dade Property Appraiser Tomás Regalado estimated that the average homeowner could save approximately $1,700 in 2027 and $2,700 in 2028. Note that these are estimates, not guaranteed savings.

The exemption replaces the existing non-school exemption structure rather than stacking on top of it. School district taxes continue under existing rules. A Miami-Dade home assessed at $250,000 or less in 2028 could be exempt from non-school property taxes. The owner would still owe applicable school taxes and other charges not covered by the exemption.

As you compare homes, you can use the Miami-Dade Property Appraiser’s tax estimator to help estimate your potential tax bill.

Who qualifies for the Miami homestead exemption?

The expanded exemption applies only to qualifying primary residences. Properties purchased for reasons other than use as a primary residence, such as vacation homes and rental or investment properties, do not qualify for the expanded exemption.

Amendment 3 also establishes a residency requirement:

• Florida residents as of December 31, 2026: May qualify for the expanded exemption when they establish homestead eligibility, subject to applicable requirements.

• People establishing Florida residency after that date: Generally receive the existing exemption initially, with the expanded exemption becoming available in their fifth year of homestead exemption

This is especially relevant for buyers relocating to Miami from other states. Your initial property tax savings may be smaller than those available to established Florida residents.

One reminder: the exemption does not apply automatically. Once you purchase a home and establish it as your primary residence, you can apply for the exemption through the Miami-Dade County Property Appraiser. 

What about Miami rental properties and second homes?

Buyers purchasing rental properties, second homes, or other non-homestead real estate will not receive the expanded exemption.

However, in January, the annual assessment cap for most non-homestead properties falls from 10% to 5%. This limits how quickly assessed values can increase each year, although it does not guarantee lower tax bills. If you’re considering an investment property, include property taxes, insurance, maintenance and other operating expenses in your financial projections.

What doesn’t change under Amendment 3?

School district property taxes remain in place, and bills can still change with assessments and millage rates.

Florida’s existing homestead protections, including Save Our Homes and portability, also remain. Save Our Homes limits annual increases in a homestead’s assessed value to 3% or the percentage change in the Consumer Price Index, whichever is lower.

Amendment 3 also changes how Miami-Dade County and local municipalities may use property tax revenue. Miami-Dade County estimates that Amendment 3 could reduce property tax revenue by approximately $385.8 million in the budget year beginning October 2027 and about $696.7 million in the following budget year, assuming current tax rates.

The county relies on property taxes to fund services such as Fire Rescue, roads, drainage, parks, libraries and transit. The impact may influence local budgets, service levels or other revenue sources.

How do you apply for the Miami homestead exemption?

Apply through the Miami-Dade County Property Appraiser. Be aware that generally, the property must be your permanent residence as of January 1, and the standard filing deadline is March 1.

If you purchase a Miami home and plan to make it your primary residence, apply for the homestead exemption through the Miami-Dade County Property Appraiser. Your eligibility for the expanded exemption will depend in part on when you established Florida residency.

What Amendment 3 means for your home search

Property taxes form one part of your total housing cost after your purchase, alongside any other recurring costs you have, like a mortgage, homeowners insurance, and association fees. If you’re buying in Miami, the expanded exemption could give you greater flexibility as you decide what you can comfortably afford.

As you compare properties, be sure to look at the full cost of ownership rather than the list price alone. Tax estimates can help you evaluate homes in different neighborhoods and understand how each one fits your budget.

Also, remember, if you’re moving to Miami from out of state, account for the exemption’s residency requirements when estimating your first few years of ownership.

A buyer’s agent familiar with Miami-Dade can help you compare properties, understand local costs and navigate the process from your initial search through closing.

Interested in buying a home in Miami? Browse listings in your favorite neighborhoods. When you buy with Prevu, you can receive a commission rebate of up to 1.5% of your purchase price.

This article is for informational purposes only and is not tax or legal advice. For details about your property or eligibility, contact the Miami-Dade County Property Appraiser or a qualified tax professional.