What Could Florida Amendment 3 Mean for Key West Property Owners?

What Is Florida Amendment 3?

As of October 21, 2026, Florida Amendment 3 is a proposal on the November 3 ballot requiring 60% approval. It would expand the non-school homestead exemption and lower the annual assessment-increase cap for non-homestead property.

If approved, qualifying homeowners would receive total non-school homestead exemptions of up to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. These are total amounts, not additions to the existing exemption. The school-tax exemption would remain $25,000. For comparison, the 2026 standard exemption is $25,000 for school and non-school taxes plus up to $26,411 on qualifying assessed value above $50,000 for non-school taxes only—a maximum combined non-school exemption of $51,411.

What Could Key West Owners Save?

Florida TaxWatch illustrates potential savings at 10.5 non-school mills: approximately $1,035 in 2027 and $2,085 in 2028 for qualifying homes assessed above the applicable exemption thresholds.

These figures assume unchanged tax rates. They are not estimates for a particular Key West property. Actual savings depend on eligibility, assessed value and local non-school millage rates.

Second homes and investment rentals would not qualify for the expanded homestead exemption. For qualifying non-homestead properties, including rentals and commercial property, the annual non-school assessment-increase cap would fall from 10% to 5% beginning in 2027 if approved. This concerns assessed value, not the final tax bill; it does not prevent a reset after a qualifying ownership change.

Planning a Purchase or Sale

Build your budget around current rules and treat possible future relief separately. Under the proposal, people who were permanent Florida residents by December 31, 2026 could qualify for the larger exemption when they establish an eligible homestead, even if they buy later. People who were not permanent Florida residents by that date would initially receive a $50,000 non-school exemption, adjusted for inflation beginning in 2028, with the larger benefit beginning in their fifth year of homestead exemption, subject to the proposal’s rules. Confirm your eligibility with the Property Appraiser. Save Our Homes and portability would remain; a seller’s tax bill is still not a reliable estimate of a buyer’s future bill.

Frequently Asked Questions

Has Amendment 3 passed, and when is the vote?

No. As of October 21, 2026, it remains a proposal. Voters decide November 3, 2026; passage requires 60% approval.

When would the homestead exemption changes begin?

If approved, the larger exemption would begin in 2027, increase again in 2028, and receive annual inflation adjustments starting in 2029.

Would it eliminate all property taxes?

No. School property taxes remain payable. An exemption removes eligible taxable value; it is not a dollar-for-dollar credit against the tax bill.

Would rental properties get the expanded homestead exemption?

The expanded exemption applies to qualifying homestead property. Rental and commercial properties instead may benefit from the proposed lower non-homestead assessment-increase cap.

Would 5% cap the increase in my final tax bill?

No. The proposed cap concerns annual assessment increases for non-homestead property. Tax rates also affect the final bill.

How can I estimate potential savings?

Confirm homestead eligibility and assessed value, then use the non-school millage rates on your tax bill. Florida TaxWatch’s resource center below explains the calculation.

For current figures, examples and filing guidance, see our homestead information page and homestead eligibility guide. Our Key West property tax guide explains reassessment, millage and ownership costs. Amendment 3 also provides a process for further local exemptions; it does not automatically eliminate all property taxes. Non-ad valorem charges remain separate, and future millage decisions could affect net savings.

Contact Scott Forman, Broker/Owner of Royal Palms Realty, to discuss ownership costs as part of your Key West buying or selling plans.