Florida Amendment 3 Passes: What the New Homestead Exemption Means for Port St. Joe & Gulf County

November 4, 2026 · By Dr. Carla Ashabranner, Broker, Selling the Coast Real Estate

Florida voters have approved Amendment 3, one of the most significant property tax changes our state has seen in years. According to the Florida Division of Elections' election night results, the measure received 61.99% "Yes" (4,917,482 votes), clearing the 60% threshold required to amend the Florida Constitution. (Results are unofficial until certified by the state.)

Whether you own a home in Port St. Joe, a vacation rental on Cape San Blas, or you're thinking about moving to the Forgotten Coast, here is a plain-language look at what the amendment says, when it takes effect, and what it may mean for you. Have a question about your situation? Call Carla directly at (850) 730-3278.

What Amendment 3 Does

The amendment's official title is "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments." Based on the full ballot text published by the Florida Department of State, it:

• Raises the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments after that.
• Leaves school taxes unchanged. The $25,000 exemption that applies to school district levies stays the same.
• Phases in the larger exemption for new residents. People who are not Florida residents on December 31, 2026, receive the existing exemption when they qualify, and the increased exemption begins with their fifth year of exemption, to the extent permitted by the U.S. Constitution.
• Lowers the annual assessment cap on non-homestead property (such as second homes, rentals and commercial property) from 10% to 5% for non-school levies, beginning January 1, 2027.
• Directs how counties and cities use property tax revenue, listing public safety, education and schools, infrastructure, natural resources and flood control, bond debt service, employee retirement benefits, and operations and administration.
• Allows further local relief. The Legislature must create a uniform process for counties and municipalities to increase the homestead exemption for their own levies, and special districts may do so with voter approval.

You can also read the ballot summary on the state's Constitutional Initiatives page.

Key Dates to Know

What It Means for Current Homestead Owners

If you already have a homestead exemption, Florida Realtors reported in its Amendment 3 webinar recap that you generally do not need to reapply; the increase is expected to show up automatically on your TRIM notice. The same recap notes that Save Our Homes and portability remain in place.

Keep in mind that the larger exemption reduces the taxable value used for non-school levies. Your actual bill will still depend on your assessed value, school taxes, and the millage rates your county, city and special districts set each year. Savings will vary from one property to the next, so no specific dollar amount can be promised.

Buying a Home on the Forgotten Coast

For buyers, the December 31, 2026 residency date matters. According to the Florida Realtors recap, the tax attorney advising the association said people whose primary residence is in Florida on that date, including renters who buy later, would qualify for the full benefit, and suggested keeping proof of residency such as a driver's license, voter registration or utility bills. Buyers who move here after that date would receive the current exemption for their first four years of exemption and the larger exemption starting in year five.

Homestead applications in Gulf County are filed with the Gulf County Property Appraiser, generally by March 1 of the tax year, and you must own the home and make it your permanent residence as of January 1. The Florida Department of Revenue also explains statewide property tax exemptions. If you're starting your search, browse Port St. Joe homes for sale, Mexico Beach listings, or visit our buyer resources.

Second Homes, Vacation Rentals and Investment Property

Much of the Forgotten Coast is made up of second homes and short-term rentals. Starting January 1, 2027, annual increases in the assessed value of non-homestead property are capped at 5% instead of 10% for non-school levies. This can make future tax bills more predictable, but it does not change school taxes, and under the amendment text, non-homestead residential property can still be reassessed at just value after a change of ownership. If you own or are considering a Cape San Blas rental, call Carla at (850) 730-3278 to talk through how the change may apply to you.

What Sellers Should Know

Buyers often estimate their future taxes from the seller's current bill, but taxes are recalculated after a sale based on the new owner's situation and exemptions. Clear, accurate information helps every transaction go smoothly. If you're thinking about listing, start with a free home valuation or review our seller services.

What's Still Unknown

The Legislature still has to pass laws to implement parts of the amendment, and local governments will make budget decisions over the coming months. How individual counties and cities respond, including millage rates and any additional local exemptions, is not yet known. We'll keep following Gulf County updates in our Gulf County BOCC recaps and on the Selling the Coast blog.

Questions? Let's Talk

Every property and every owner's situation is different. Whether you're buying, selling, or simply want to understand what this means for your home, reach out to Carla at (850) 730-3278 or carla@sellingthecoastfl.com. You can also meet our team or visit our contact page.