Florida Amendment 3: What Changes for Naples Property Owners in 2027

What changes on January 1, 2027

Amendment 3 changes two parts of Florida property tax law that matter most to people who own or are buying in Collier and Lee counties.

First, it increases the homestead exemption for all non-school taxes. The exemption covers assessed value up to $150,000 in 2027 and up to $250,000 in 2028, and is adjusted for inflation after that, according to the Florida Department of Revenue and the official ballot summary.

Second, it reduces the annual cap on assessment increases for non-homestead properties from 10 percent to 5 percent. Under the amendment text, that cap applies, for levies other than school district levies, to residential real property with nine units or fewer that is not homestead, and to other non-homestead real property. No assessment may exceed just value.

The amendment also requires counties and municipalities to use property taxes only for public safety, education and schools, infrastructure, natural resources, bond debt service, employee retirement benefits, and operations and administration. Other expenditures may be approved by county officers or county or municipal governing bodies unless prohibited by general law.

The Legislature is required to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to the full assessed value. Special districts may do the same if voters approve it in a referendum.

What it means for homestead owners

If the property is your Florida homestead (you hold legal or equitable title and maintain it as your permanent residence, or as the permanent residence of someone legally or naturally dependent on you), the larger non-school exemption is the main change. Beginning January 1, 2027, the non-school homestead exemption is up to $150,000 of assessed value. Beginning January 1, 2028, it is up to $250,000, with inflation adjustments thereafter.

That increase applies to non-school taxes. It does not change the school-district homestead exemption, which remains up to $25,000 of assessed value.

There is an important timing rule for people who were not Florida residents on December 31, 2026. When they later qualify for a homestead exemption, they receive the existing exemption: up to $25,000 of assessed value for school taxes, and up to $50,000 of assessed value for non-school taxes. Eligibility for the increased exemption begins with the fifth year of exemption, to the extent permitted by the U.S. Constitution.

Homestead assessments remain subject to the existing annual limit already in Article VII, Section 4 of the Florida Constitution (the lower of 3 percent or the change in the Consumer Price Index). Amendment 3's new 5 percent cap is the non-homestead rule. It is not a change to that homestead assessment limit.

What it means for second-home, rental, and short-term rental owners

A Naples second home, long-term rental, or short-term rental that is not your homestead is non-homestead property. For those properties, the annual cap on assessment increases, for levies other than school district levies, drops from 10 percent to 5 percent beginning January 1, 2027.

The 5 percent figure is a cap on how much the assessed value may increase from the prior year's assessment. It does not lock in a tax bill, and it does not change millage rates set by local taxing authorities.

A sale still resets the assessment to just value

A change of ownership still starts a new assessment at just value.

For homestead property, after a change of ownership the property is assessed at just value as of January 1 of the following year, as the constitution already provides.

For residential real property with nine units or fewer that is not homestead, after a change of ownership or control (as defined by general law), including any change of ownership of a legal entity that owns the property, the property is assessed at just value as of the next assessment date. After that, the 5 percent annual cap applies again.

Buying a property, or a change of control of an entity that owns a residential property of nine units or fewer, resets the assessment to just value. The new cap then limits later annual increases. It does not carry the seller's assessed value forward.

How to get an answer for your property

Implementing details, forms, and further guidance may still be issued by the Florida Department of Revenue. For a specific parcel in Collier County, contact the Collier County Property Appraiser. For a parcel in Lee County, contact the Lee County Property Appraiser. A CPA can also review how these rules apply to your situation.

Source One Realty Florida, Inc. serves buyers and sellers in the Naples area. Questions about buying or selling a homestead, second home, or investment property can be directed to the brokerage. Questions about a tax bill or an exemption belong with the property appraiser or your CPA.

Frequently asked questions

When does Amendment 3 take effect?

It takes effect January 1, 2027, and first applies to the 2027 tax roll, according to the Florida Department of Revenue.

Does the larger homestead exemption apply to school taxes?

No. The increase is for all non-school taxes. The school-district homestead exemption remains up to $25,000 of assessed value.

What is the new cap for non-homestead property?

Beginning January 1, 2027, the annual cap on assessment increases for non-homestead properties drops from 10 percent to 5 percent, for levies other than school district levies. No assessment may exceed just value.

Does a sale reset the assessed value?

Yes. A change of ownership still results in an assessment at just value. For residential real property with nine units or fewer that is not homestead, a change of ownership or control, including a change of ownership of a legal entity that owns the property, resets the assessment to just value as of the next assessment date.

I was not a Florida resident on December 31, 2026. When do I get the larger homestead exemption?

When you later qualify for a homestead exemption, you receive the existing exemption: up to $25,000 of assessed value for school taxes, and up to $50,000 of assessed value for non-school taxes. The increased homestead exemption begins with the fifth year of exemption, to the extent permitted by the U.S. Constitution.

Where can I get information about my parcel?

For Collier County, visit the Collier County Property Appraiser. For Lee County, visit the Lee County Property Appraiser. You can also ask your CPA. This article is general information from Source One Realty Florida, Inc., not tax advice.

Sources

• Florida Department of Revenue, Property Tax Oversight Informational Bulletin PTO 26-21 (November 5, 2026)
• Official ballot text and summary, Amendment 3
• Florida Election Watch, amendment results
• Florida Department of State, initiative detail and summary
• Collier County Property Appraiser
• Lee County Property Appraiser