Florida gives you a discount for paying property taxes early. Under section 197.162, Florida Statutes, you save 4% if you pay in November, 3% in December, 2% in January and 1% in February. There's no discount in March. Taxes not paid by March 31 become delinquent, and extra charges start.

How does the Florida discount schedule work?

County tax collectors mail tax notices in the fall, usually around November 1. The discount depends on when you pay:

• November: 4% off.
• December: 3% off.
• January: 2% off.
• February: 1% off.
• March: full amount, no discount.

On a $5,000 tax bill, paying in November saves $200. Paying in February saves $50. That's a real return for paying a bill you owe anyway.

What if my tax notice arrives late?

The statute builds in some cushion. The 4% rate applies in November or at any time within 30 days after the original tax notice is sent, whichever works in your favor. And if a discount period ends on a Saturday, Sunday or legal holiday, it extends to the next working day, as long as payment is delivered to the tax collector's designated office.

What if my bill is corrected?

Mistakes happen, especially with exemptions or values. Section 197.162 covers two situations:

• You asked for a correction: the discount rate that applied when you made the request stays available for 30 days after the corrected notice is sent.
• A value adjustment board changed your value: if a corrected notice is issued before the taxes become delinquent, you get the full 4% for 30 days after it's sent. After that, the regular schedule applies.

So a correction doesn't have to cost you the discount, but don't sit on the corrected notice.

When do Florida property taxes become delinquent?

Taxes are due by March 31. If they're not paid by then, they become delinquent on April 1. After that, the tax collector adds interest and costs, and an unpaid bill can eventually lead to the sale of a tax certificate on the property. A tax certificate lets an investor pay your taxes and collect interest from you, and if the taxes stay unpaid, it can lead to a tax deed sale. Avoid getting there.

Does an escrow account get the discount?

Usually, yes. Most mortgage servicers that pay taxes from escrow pay in November to get the 4% discount. Check your annual escrow statement or your county tax collector's site to confirm when your taxes were paid. If your servicer paid late or missed the bill, call right away.

Can I pay in installments?

Many Florida counties offer an installment payment plan, where taxes are paid in quarterly installments that still earn a discount. You usually have to sign up in advance. Ask your county tax collector about the rules and the enrollment deadline.

How do Florida property taxes work in a home sale?

Florida property taxes are paid in arrears. The bill you get in November covers the calendar year that's ending. At closing, the seller usually credits the buyer for the seller's share of the current year's taxes, based on the number of days the seller owned the home.

Here's where it gets tricky:

• If you close before the November bill, the proration is often based on the prior year's taxes or an estimate. Some contracts adjust for the maximum discount.
• If you close after the seller already paid, the buyer may owe the seller a credit for the days after closing.
• If the seller had a homestead exemption, the buyer's taxes can go up the next year, because the exemption and the Save Our Homes cap don't transfer automatically.

What should buyers budget for?

Don't assume the seller's tax bill will be yours. When a home sells, the assessed value is generally reset to market value as of the next January 1, which can raise the taxable value significantly, especially if the seller owned it for many years under the Save Our Homes cap. Ask the county property appraiser's office for an estimate based on your purchase price, and apply for your own homestead exemption by the March 1 deadline if the home will be your permanent residence.

What should sellers know?

Settle any delinquent taxes before closing. If you're selling in the fall, ask your title company how the proration will treat the discount. A seller who has been taking the 4% discount for years may expect it to be built into the math, and it's worth confirming.

FAQ

How much is Florida's property tax discount? 4% in November, 3% in December, 2% in January and 1% in February. No discount in March.

When are Florida property taxes delinquent? Taxes not paid by March 31 become delinquent on April 1.

What if my tax notice is corrected? If you requested the correction, the discount rate in effect when you asked applies for 30 days after the corrected notice is sent. After a value adjustment board change, you get 4% for 30 days.

Does my mortgage company get the discount? Most servicers pay in November to get the 4% discount, but check your escrow statement to confirm.

Next step

Mark November on your calendar if you pay your own taxes, and confirm your servicer's payment date if you escrow. If you're buying or selling, talk with a licensed local agent about how taxes will be prorated and what your bill could look like after the sale.

Sources: Section 197.162, Florida Statutes; Florida Department of Revenue: Property Tax Information for Taxpayers.

Amendment 3 cuts the yearly cap on assessed value increases for Florida rentals, second homes and other non-homestead property from 10% to 5%, starting with the 2027 tax roll. The cap only covers non-school taxes. School taxes still follow market value, and the cap resets when a residential property changes hands.

Voters approved the amendment on November 3, 2026. Most of the coverage has been about the bigger homestead exemption, but if you own or plan to buy property you won't live in full time, the 5% cap is the part that touches you.

What did Amendment 3 change for non-homestead property?

The Florida Department of Revenue summed it up in bulletin PTO 26-21, issued November 5: the annual cap on assessment increases for non-homestead property drops from 10% to 5%. The joint resolution text writes it as 10% before January 1, 2027 and 5% beginning January 1, 2027.

The 5% cap applies in two places in the Constitution. One covers residential property with nine units or fewer that isn't a homestead. The other covers everything else that isn't already capped. The Pinellas County Property Appraiser gives examples of what counts as non-homestead:

• Rental houses and condos
• Second homes and vacation homes
• Commercial property, including larger apartment buildings
• Vacant land

The amendment takes effect January 1, 2027. Pinellas says you'll first see it on the August 2027 TRIM notice and the tax bill delivered in November 2027.

What didn't change?

Plenty, and these points matter more to your bill than the headline does.

• School taxes aren't capped. Both caps say they apply to "all levies other than school district levies." Pinellas says school taxes stay based on just (market) value.
• Tax rates aren't capped. The 5% limit is on assessed value. Pinellas is direct about it: the change caps assessed value, not taxes. Your county, city and other districts still set millage every year.
• Non-ad valorem assessments are untouched. Pinellas notes exemptions don't reduce these separate charges, and since they aren't based on assessed value, the cap doesn't either.
• Your 2026 bill is the old system. Bills mailed this fall are on the 2026 roll, under the 10% cap.

The bigger homestead exemption doesn't reach a rental or second home either. It only applies to your permanent residence. If you're thinking about moving into the property full time, start with our Florida homestead exemption guide.

How does the 5% cap work from year to year?

Florida assesses property as of January 1. When a non-homestead property's assessed value sits below its market value, the assessed value can rise each year, up to the cap, until it catches up. The Constitution also says no assessment can exceed just value.

That has a practical side. In a flat or softening market, a property with a big gap between assessed and market value can still see its non-school assessment climb by up to 5% a year. Starting in 2027, that climb is half as steep as it used to be.

Improvements are handled separately. Adding a room, a pool or other new construction gets added to the assessment under state law, and then the cap applies again from that new starting point.

What happens when I buy a Florida rental or second home?

This is where buyers get caught. For residential non-homestead property, the Constitution says that after a change of ownership or control, the property is reassessed at just value as of the next assessment date. The cap then starts over from there.

So the seller's tax bill isn't your tax bill. If the seller owned for years, their capped assessment may be well below market. Expect your first full year to be based on something close to what you paid. Budget from current market value, not from the seller's last bill.

Buying through an LLC or other entity doesn't dodge the reset. A change of ownership of the entity that owns the property counts too. Under Florida Statutes 193.1556, owners have to notify the property appraiser of a change of ownership or control. A recorded deed counts as notice. If an owner fails to report and the appraiser finds the cap was wrongly applied, the owner can owe the avoided taxes for up to 10 years, plus 15% interest a year and a 50% penalty.

Does Amendment 3 help renters?

Not directly. Nothing in the amendment limits rent, and nothing requires a landlord to pass savings along. A smaller cap slows growth in the non-school part of a landlord's tax bill, but school taxes, insurance and the local rental market still drive what landlords charge.

If you rent, the honest answer is that any effect will be slow and uneven. Don't plan your budget around a rent cut.

What should owners and buyers do now?

Owners of non-homestead property can keep it simple:

• Pay the 2026 bill as usual. Florida law gives a 4% discount for paying in November, 3% in December, 2% in January and 1% in February. The full amount is due by March 31, 2027.
• Watch the August 2027 TRIM notice. It's the first one that should reflect the 5% cap. Compare the assessed value to the market value listed.

If ownership or control of an LLC that holds the property changes, tell the property appraiser right away.

Buyers have more to check before making an offer:

• Estimate taxes from the price, not the listing's tax history.
• Get insurance quotes early. On coastal or low-lying property, flood coverage is a separate cost you'll want priced before you commit. Our guide on flood insurance in Florida explains why it isn't part of a standard homeowners policy.
• Check the address for flood and fire risk with FloodFireCheck before you're under contract.
• Read the local market. Our Florida housing market update covers prices and inventory this fall.

FAQ

When does Florida's 5% non-homestead cap start?

It takes effect January 1, 2027 and first applies to the 2027 tax roll. Owners should first see it on August 2027 TRIM notices and November 2027 tax bills.

Does the 5% cap apply to school taxes?

No. The non-homestead caps apply only to non-school levies. School taxes on rentals and second homes are still based on market value.

Does buying a rental reset the assessment?

Yes, for residential non-homestead property. After a change of ownership or control, it's reassessed at market value as of the next January 1, and the cap applies from there.

Will Amendment 3 lower my rent?

The amendment doesn't regulate rent. It slows growth in part of a landlord's tax bill, but landlords set rents based on many costs and on the local market.

Next step

Buying a rental or second home in Florida, or deciding whether to sell one? Talk with a licensed local real estate agent. They can help you estimate taxes from today's market value and compare properties before you commit.

Sources: Florida DOR Property Tax Oversight Bulletin PTO 26-21; CS/HJR 1F enrolled text; Pinellas County Property Appraiser Amendment 3 FAQ; Florida Statutes 193.1556, notice of change of ownership or control; Florida Statutes 197.162, tax discount payment periods.

Updated November 2026

If you leave one Florida homestead for another, you may port up to $500,000 of your Save Our Homes assessment difference to the new home. File Form DR-501T with your new homestead application by March 1, and establish the new exemption within three years of January 1 of the year you abandoned the old one.

Portability is how long-time Florida owners keep part of the tax break they built under Save Our Homes when they move inside the state. The Florida Department of Revenue explains the rules in its Save Our Homes Assessment Limitation and Portability Transfer guide (PT-112). Miss the timing window or skip DR-501T, and the benefit can shrink or vanish.

What exactly can I transfer?

Save Our Homes (SOH) limits annual increases in assessed value on a homesteaded property to 3% or the CPI change, whichever is less, after the first homestead year. Over time, just (market) value often runs ahead of assessed value. That gap is the SOH benefit.

Portability lets you transfer all or part of that assessment difference to a new Florida homestead, up to $500,000. The transfer lowers the assessed value on the new home, which can lower the tax bill compared with a full just-value assessment.

You are not transferring the old tax bill itself. You are transferring the differential, subject to statutory formulas when you upsize or downsize.

How do upsizing and downsizing change the amount?

County property appraisers and Department of Revenue materials describe the common patterns this way:

• Upsizing: If the just value of the new homestead is greater than or equal to the just value of the previous homestead, you can generally transfer the entire SOH benefit, up to the $500,000 cap.
• Downsizing: If the new home's just value is lower, you transfer a percentage of the SOH benefit equal to the new just value divided by the previous just value, still subject to the $500,000 cap.

Example used by county appraisers: moving from a $300,000 just-value home to a $180,000 just-value home would allow 60% of the SOH benefit to transfer ($180,000 / $300,000). Always confirm the math with the property appraiser using the values on the tax rolls, not a guess from a listing price.

What are the timing rules?

Two clocks matter.

First, you must establish a homestead exemption on the new home within three years of January 1 of the year you abandoned the old homestead. That is not always three full years from the closing date. A sale late in the calendar year can shorten the practical window. Voters expanded the portability window to three tax years effective January 1, 2021.

Second, file the Transfer of Homestead Assessment Difference (Form DR-501T) with the homestead application (Form DR-501) by March 1 for the year you are applying. Submit both to the county property appraiser where the new home is located.

If the property appraiser denies the application, you may petition the county value adjustment board.

What else can trip people up?

Shared prior homestead. If other people shared the previous homestead exemption, all recipients generally must abandon the previous homestead before the assessment limitation can be ported, and the benefit is allocated by ownership share. Married spouses abandoning jointly titled property may designate shares under rules counties explain on their portability pages.

Change of ownership on the old home. Selling or otherwise changing ownership ends the SOH benefit on that parcel going forward. Portability is how you carry value to the next homestead; it is not automatic without forms.

Newcomers from out of state. Portability moves a Florida SOH benefit to another Florida homestead. It does not import a tax cap from another state. New arrivals still apply for regular homestead. Under Amendment 3, approved by voters on November 3, 2026, people who aren't Florida residents on December 31, 2026, start with the existing exemption and get the larger $150,000-plus non-school exemption beginning in their fifth year of exemption, per the Florida Department of Revenue. See homestead exemption and Save Our Homes basics.

Insurance and moving costs. Portability is a property-tax tool. It does not change flood or wind insurance. If you are relocating across the state, also plan the move with an FDACS-registered mover or, for an interstate inbound move, FMCSA rules.

How should I prepare before I list or buy?

• Ask your current county property appraiser for the SOH differential on your existing homestead
• Get a tax estimate on the target property assuming portability scenarios your agent and appraiser outline
• Calendar the March 1 filing deadline for DR-501 and DR-501T
• Keep closing statements and proof of abandonment of the prior homestead
• If buying and selling in different counties, confirm both appraisers' document lists early

Market conditions affect sale proceeds and purchase price, which then feed just-value comparisons. The Florida housing market Q3 2026 snapshot gives statewide context; your agent should still pull local comps.

FAQ

What is the maximum SOH amount I can port?
Up to $500,000 of the assessment difference between just value and assessed value, subject to upsizing and downsizing rules.

What form do I file?
Form DR-501T (Transfer of Homestead Assessment Difference) with Form DR-501 (homestead application), by March 1, with the county property appraiser for the new home.

How long do I have after leaving my old homestead?
You must establish the new homestead exemption within three years of January 1 of the year you abandoned the old homestead.

Can I port if I move from Miami-Dade to Duval County?
Yes. Portability works between Florida counties when you meet the homestead and filing rules.

What if I forget DR-501T in year one but get homestead later?
County guidance notes you may still apply later in some cases, but prior-year tax refunds generally are not available. File on time when you can.

Next step

A licensed local real estate agent can coordinate timing between your sale and purchase and point you to the correct county portability checklist. Bring your latest tax notice, estimated SOH differential, and draft DR-501 / DR-501T forms. More guides are under Florida real estate articles.

Sources: DOR PT-112: Save Our Homes and portability, Florida DOR: Property tax exemptions.

Florida Realtors reported 65,904 single-family closed sales in Q3 2026, a median sale price of $420,000, and active inventory down 9.8% to 95,799 homes. Homes reached contract in a median 47 days as statewide months of supply fell to 4.4.

Those statewide numbers come from Florida Realtors' Q3 2026 single-family summary, released October 16, 2026, with a companion news article on October 23, 2026. They describe July through September activity. Local metro results still vary, so treat the statewide median as a starting point, not a price tag for every ZIP code.

What did single-family sales look like in Q3 2026?

According to the Florida Realtors quarterly summary for single-family homes:

• Closed sales: 65,904, up 0.2% from Q3 2025
• Median sale price: $420,000, up 2.4%
• Average sale price: $631,903, up 8.7%
• Median percent of original list price received: 96.0%, up from 94.9%
• Median time to contract: 47 days, down from 52 days (−9.6%)
• Median time to sale: 88 days, down from 92 days
• New pending sales: 65,973, down 2.5%
• New listings: 84,008, nearly flat (−0.1%)
• Active inventory: 95,799, down 9.8%
• Months supply of inventory: 4.4, down from 5.1 (−13.7%)

In plain terms, sales held roughly steady year over year while sellers saw slightly higher median prices, faster contracts, and fewer homes sitting on the market. New pendings slipped even as closed sales edged up, which is a reminder that contract activity and closings do not always move in lockstep.

Florida Realtors' news write-up also noted that sales of homes priced at $1 million or more rose 14.9% in the quarter, while the $300,000 to $399,999 band, the largest by transaction count, declined 4.7%. Higher price brackets generally posted gains. That mix helps explain why the average price rose faster than the median.

What about condos and townhouses?

The Q3 2026 condo and townhouse detail report showed:

• Closed sales: 22,664, up 3.1% year over year
• Median sale price: $295,000, unchanged from Q3 2025
• Median time to contract: 72 days, down from 75
• Active inventory: 60,367, down 9.0%
• Months supply: 7.7, down from 9.1

Condo inventory remains looser than single-family inventory on a months-supply basis, even after the year-over-year drop. Buyers comparing a house to a condo should look at association finances, insurance master deductibles, and special assessment risk alongside the sticker price. Our condo HO-6 and wind mitigation overview covers the insurance side of that decision.

What does this mean if I am buying?

Faster median contract times and a 4.4-month single-family supply point to a market that is not as inventory-heavy as a year earlier. That does not mean every listing is a bidding war. It does mean prepared buyers do better:

• Get a mortgage pre-approval before touring seriously
• Ask for the seller's flood disclosure early and price flood insurance before removing contingencies; see Florida flood insurance basics
• Estimate property taxes with a homestead reset in mind, not the seller's capped assessed value; see homestead and Save Our Homes
• Read inspection reports with insurance underwriting in mind (roof age, four-point items, opening protection)
• Compare condo association budgets and master policy deductibles before you fall in love with a unit

Statewide medians hide coastal versus inland differences and new-construction versus resale differences. Ask your agent for the MLS stats for the specific county or metro you are targeting.

What does this mean if I am selling?

Sellers in Q3 received a higher share of original list price on a median basis and waited fewer days to go under contract than a year earlier. Inventory was also tighter. Practical takeaways:

• Price against recent closed comps, not the peak ask from two seasons ago
• Complete a thorough seller disclosure, including the required flood form
• Fix obvious inspection killers before listing when you can
• Be ready to discuss insurance and flood history; buyers are asking earlier
• If you are buying another Florida homestead, look at SOH portability before you close on the next home

Distressed sales remained a small slice of the single-family market in the Florida Realtors distressed summary for the quarter. Traditional sales still dominate the story.

FAQ

Where do these figures come from?
Florida Realtors quarterly market reports built from Florida MLS feeds, with Q3 2026 data released October 16, 2026.

Is 4.4 months of supply a buyer's market or a seller's market?
It is tighter than the 5.1 months reported for Q3 2025. Local conditions still vary; your agent should pull metro-level months of supply.

Why did average sale price rise more than the median?
A larger share of higher-priced sales can pull the average up faster than the median. Florida Realtors reported strong gains above $600,000 and at $1 million-plus in its Q3 news summary.

Are condo prices rising like single-family prices?
Statewide condo/townhouse median sale price was flat at $295,000 in Q3 2026, while single-family median rose 2.4% to $420,000.

Should I wait for the next monthly report before deciding?
Use the newest Florida Realtors release your agent has, plus local active listing and pending data. Quarterly summaries are a solid backdrop, not a timing guarantee.

Next step

A licensed local real estate agent can translate these statewide Q3 figures into comps for your county, price band, and property type. Bring your target ZIP codes, budget, and any condo docs you already have. More consumer guides live under Florida real estate articles.

Sources: Florida Realtors: Homes reach contract faster in Q3, Q3 2026 single-family summary PDF, Q3 2026 condo data detail PDF.

Florida sellers must disclose known facts that materially affect a home's value and are not readily observable to the buyer. There is also a required flood disclosure at or before contract signing, plus statutory radon language, even when a home is sold as is.

Florida does not use a single mandatory statewide seller disclosure form the way some states do. That does not mean sellers can stay silent. Florida Realtors' disclosure library (updated February 9, 2026) summarizes the court-made duty from Johnson v. Davis, the flood disclosure statute, radon wording, and code-enforcement transfer rules.

What must sellers disclose under Johnson v. Davis?

The Florida Supreme Court held that when a seller knows facts that materially affect the value of the property, and those facts are not readily observable and not known to the buyer, the seller must disclose them. Florida Statutes section 475.278 also requires real estate licensees to disclose known facts that materially affect the value of residential real property and are not readily observable.

Disclosure can be verbal or written. Florida Realtors strongly recommends writing it down. Selling "as is" does not wipe out the duty to disclose known latent defects. The First District Court of Appeal made that clear in Rayner v. Wise Realty Co. of Tallahassee.

Many brokers still use the Florida Realtors Seller's Property Disclosure - Residential form as a practical checklist. It is a useful tool, not a statute-required form. Completing it carefully is smarter than leaving buyers to discover issues after closing.

What about flood disclosure?

Florida Statutes require a flood disclosure (commonly referenced as form FD-1) from seller to buyer at or before the time the sales contract is executed. That is separate from whether the buyer later buys flood insurance.

Buyers should read the flood disclosure, then still verify flood-zone status, elevation, and insurance quotes. A disclosure is not a substitute for an insurance review. Most homeowners policies exclude flood; see Florida flood insurance and the NFIP wait period. For address-level risk context, FloodFireCheck can help frame questions before you waive inspections or insurance contingencies.

What other statutory disclosures show up in Florida deals?

Radon. Section 404.056(5), Florida Statutes, requires a specific radon gas disclosure before or at contract execution for sale or lease of a building (with a short-term lodging exception). Florida Realtors sales contracts include the required language in the body, so a separate radon form is usually unnecessary. The radon disclosure is not required for unimproved vacant land.

Death on the property. A homicide, suicide, or death on the property is not a material fact that must be disclosed under section 689.25(1)(b), Florida Statutes.

Pending code enforcement. If a home has a pending code enforcement action, the seller must disclose the proceeding in writing, deliver related pleadings and notices, tell the buyer the new owner will be responsible for compliance, and file notice with the code enforcement official within five days after transfer. Failure to disclose before transfer creates a rebuttable presumption of fraud under the cited statutes Florida Realtors summarizes.

New-home insulation. New home contracts must disclose insulation type, thickness, and R-value under federal rules mirrored in Florida Realtors contract practice.

Gopher tortoises and other environmental limits. Threatened species protections can restrict land disturbance. That is more common on larger or undeveloped parcels, but buyers should ask when burrows or permits appear in diligence.

How should buyers and sellers use disclosures in practice?

Sellers should list known latent issues: roof leaks that were patched, prior flooding inside the structure, sinkhole claims, permit problems, plumbing failures behind walls, and similar items a walkthrough would not reveal. When unsure whether something is material, talk with your agent and, if needed, a Florida real estate attorney before you answer.

Buyers should:

• Read every disclosure line and ask follow-ups in writing
• Order a professional home inspection and any specialty inspections the property suggests (roof, four-point, wind mitigation, sewer)
• Compare the flood disclosure with an insurance quote early
• Check for open permits and code cases on county sites
• Keep the disclosure packet with the contract

Disclosures support the deal. They do not replace inspection contingencies or insurance underwriting. A clean disclosure with a bad roof still needs a repair plan.

For tax timing after you buy, remember homestead filing deadlines; see Florida homestead and Save Our Homes. Market conditions can also change how much leverage buyers have to request repairs; see the Q3 2026 Florida housing market snapshot.

FAQ

Is a Florida seller required to use a specific disclosure form?
No single statewide form is mandated like some other states' packages. The *Johnson v. Davis* duty still applies, and the statutory flood and radon disclosures are required. Broker forms are common practice.

Does "as is" mean the seller can hide known defects?
No. Florida case law still requires disclosure of known latent defects that materially affect value and are not readily observable.

When must the flood disclosure be given?
At or before the sales contract is executed.

Must a seller disclose that someone died in the home?
Florida statute says a death on the property is not a material fact that must be disclosed in the transaction.

What if there is an open code enforcement case?
The seller has specific written disclosure and document-delivery duties, and must notify the code official after transfer. Skipping that creates a rebuttable presumption of fraud.

Next step

A licensed local real estate agent can walk sellers through a written disclosure package and help buyers line up inspections, flood questions, and contract timelines. Bring any prior inspection reports, insurance claim history you are allowed to share, and the draft contract. More guides are under Florida real estate articles.

Sources: Florida Realtors: Disclosure laws.

Updated November 2026

A Florida homestead exemption cuts your home's taxable value by about $50,000 today, and voters just approved a much bigger cut starting in 2027. It also qualifies you for the Save Our Homes cap, which limits yearly assessed-value growth to 3% or the CPI change, whichever is less.

Newcomers who focused on Florida's lack of a state income tax still face property tax bills that move with millage rates and assessed value, so the exemption and the Save Our Homes (SOH) limit matter.

What does the homestead exemption do?

When you own property and make it your permanent residence (or the permanent residence of a dependent), you may be eligible for a homestead exemption that lowers the property's taxable value. The property appraiser in the county where the home sits decides whether the parcel qualifies.

Homestead is not automatic forever without paperwork. You generally must own and occupy the home as your permanent residence on January 1 of the tax year, and you file Form DR-501 with the county property appraiser. The usual filing deadline is March 1. Late or incomplete filings can mean you wait another year for the benefit.

For the 2026 tax year, the exemption has two layers. The first $25,000 applies to all taxes, including school taxes. A second layer applies only to non-school taxes and is adjusted for inflation; the Pinellas County Property Appraiser lists it at $26,411 for 2026, for a combined exemption of up to $51,411. Ask your county property appraiser how the layers show on your specific notice.

What changes in 2027 under Amendment 3?

Florida voters approved Amendment 3 on November 3, 2026. According to the Florida Department of Revenue, it takes effect January 1, 2027, and first applies to the 2027 tax roll. The main changes:

• Bigger non-school exemption. The homestead exemption for non-school taxes rises to $150,000 of assessed value in 2027 and $250,000 in 2028, then adjusts for inflation.
• School taxes barely change. Only the first $25,000 stays exempt from school taxes, so most homesteaded owners will still get a bill with school taxes on it.
• Save Our Homes stays. The 3%-or-CPI cap on homestead assessments is not repealed.
• Newcomers wait. People who are not Florida residents on December 31, 2026, get the existing exemption when they qualify, and the larger exemption starts with their fifth year of exemption.
• Non-homestead cap drops. Annual assessment growth on rentals, second homes, and commercial property is capped at 5% instead of 10% for non-school taxes.

What it means in dollars depends on your county and city millage rates, and local governments may adjust their budgets in response. Treat 2027 savings as an estimate until your county publishes figures.

What is the Save Our Homes cap?

Homestead also qualifies the home for the Save Our Homes assessment limitation under section 193.155, Florida Statutes. After the first year the home receives a homestead exemption and is assessed at just value, the assessment for each following year cannot increase more than 3% or the percent change in the Consumer Price Index, whichever is less.

The accumulated difference between just (market) value and assessed value is the SOH benefit. Even if market value falls, assessed value may still rise by the limited amount, but assessed value will not exceed just value.

Important timing: if you buy a home and receive homestead for the first eligible year, the SOH cap typically begins the following year. Buyers who estimate next year's tax using the seller's capped assessed value often understate the bill, because a change of ownership generally resets the property to just value on the following January 1.

What happens when ownership changes?

Florida law treats a sale, foreclosure, or transfer of legal or beneficial title as a change of ownership that removes the SOH benefit and triggers assessment at just value the next January 1. Losing or removing homestead also triggers reassessment.

Some transfers, such as certain transfers between spouses or upon death, do not trigger reassessment. Details live in section 193.155, F.S. Notify the property appraiser if your homestead status changes so you avoid penalties later.

If you are moving from one Florida homestead to another, you may be able to port the SOH benefit. See our guide to Save Our Homes portability.

How should first-time Florida buyers use this?

Department of Revenue publishes a first-time Florida homebuyer property tax guide (PT-107). Practical steps:

• Ask the listing agent and seller for the current tax bill and whether homestead is in place
• Run a tax estimate with the county's tools using just value assumptions for year two if you are a new owner
• Calendar the March 1 DR-501 deadline as soon as you close and occupy
• If you're moving to Florida, know that the date you become a resident affects when the larger Amendment 3 exemption reaches you
• Keep proof of permanent residence (driver license address, voter registration, and similar items counties often request)
• If you are relocating inside Florida with a prior homestead, file DR-501T for portability with the new homestead application

Homestead does not change flood or wind insurance rules. Pair your tax planning with a clear look at flood coverage and any Citizens or private homeowners issues on the same address.

FAQ

When do I apply for Florida homestead?
File Form DR-501 with the county property appraiser, usually by March 1, for the tax year in which you own and occupy the home as your permanent residence on January 1.

Does homestead freeze my tax bill?
No. It reduces taxable value and caps annual assessed-value growth under Save Our Homes. Millage rates can still change the dollar tax due.

If I buy a home that already has Save Our Homes, do I keep the seller's capped value?
Generally no. A change of ownership resets assessment to just value on the following January 1, then your own SOH cap builds after you establish homestead.

Will Amendment 3 lower my 2026 tax bill?
No. It takes effect January 1, 2027, so the first bills it affects are the 2027 bills sent in late 2027.

I'm moving to Florida in 2027. Do I get the $150,000 exemption?
Not right away. People who weren't Florida residents on December 31, 2026, get the existing exemption first, with the larger one starting in their fifth year of exemption.

What if my application is denied?
You may petition the county value adjustment board. Department of Revenue publishes petition guidance for that process.

Next step

A licensed local real estate agent can help you estimate taxes on a specific listing, flag whether the seller's capped assessment will reset, and time your homestead filing after closing. Bring the tax bill, proposed DR-501 documents, and your closing date. Browse more guides under Florida real estate articles.

Sources: Florida DOR bulletin PTO 26-21 on Amendment 3, Florida Division of Elections: Amendment 3 text, Pinellas County Property Appraiser: Amendment 3 FAQ, Florida DOR: Property tax exemptions, DOR PT-112: Save Our Homes and portability, DOR PT-113: Homestead exemption guide.