Florida homeowners could see lower property-tax bills under Amendment 3, and a national economist says the relief could pull hesitant buyers back into the housing market.

More than 62% of voters approved the measure Tuesday, Nov. 3, expanding the state's non-school homestead tax exemption from $50,000 to $150,000 in 2027 and to $250,000 in 2028, according to Action News Jax. Annual inflation adjustments begin in 2029.

The change carries a steep local price tag. As we reported Nov. 4, estimates from the Florida Office of Economic and Demographic Research cited by St. Johns County project the county could lose approximately $68.3 million in property-tax revenue in fiscal year 2028 and $136.1 million in fiscal year 2029, with annual losses reaching $191.6 million by fiscal year 2032.

But the tax cuts may also help a sluggish housing market.

Lower taxes could bring buyers back

Joel Berner, a senior economist with Realtor.com, told Action News Jax the reduced tax burden could spur activity among prospective homebuyers across Florida. He said the relief arrives as homeownership costs climb statewide, with insurance premiums and homeowners association fees adding pressure.

"We're seeing prices fall in Florida and in Jacksonville, specifically, in the low single-digits year over year right now," Berner said.

A modest boost in buyer demand could help stabilize the current market, he said. Berner noted the possibility that savings could push home prices higher, either by attracting new residents or by expanding what buyers can afford. He said lower taxes increase consumer purchasing power.

Still, he does not expect a repeat of pandemic-era price spikes, calling it "probably more of a price stabilization than a price run up."

St. Johns County faces substantial revenue losses

While qualifying homeowners could benefit from lower taxes, local governments face significant reductions in revenue.

A legislative analysis estimated the measure would reduce local government revenue statewide by nearly $5 billion in the 2027-28 fiscal year, with losses increasing in subsequent years, WOKV reported.

St. Johns County has been preparing for the financial effects since May, reviewing services, staffing, contracts, capital projects and potential funding sources. County officials have warned that reduced property-tax collections could affect future budgets and public services.

The amendment also lowers the annual assessment increase cap for most non-homestead properties, including rental properties, second homes and commercial real estate, from 10% to 5% for non-school taxes.

Who qualifies for the expanded exemption?

The amendment does not eliminate property taxes or expand the exemption for school district taxes. Save Our Homes protections and portability remain unchanged, according to Florida Realtors.

The expanded exemption is available to qualifying homeowners who establish Florida residency by Dec. 31, 2026, including residents who purchase a qualifying home later.

People who establish Florida residency on or after Jan. 1, 2027, initially receive the existing exemption upon qualifying for homestead status. They become eligible for the larger exemption beginning in their fifth year of receiving a homestead exemption, subject to federal constitutional requirements.

The amount homeowners save will depend on their property's assessed value, applicable exemptions and local tax rates. The amendment changes taxable values rather than tax rates, and other assessments and fees may still affect the total bill.

When will homeowners see the savings?

Amendment 3 takes effect Jan. 1, 2027. According to the Seminole County Property Appraiser's Office, the changes will first appear on property-tax bills issued in November 2027.

The amendment will not affect 2026 property-tax bills.

State lawmakers and local officials are expected to address implementation details before the new exemptions take effect.