Florida voters nearly tripled the homeowner tax break — blowing an $11.8 billion hole in county budgets

Many Florida homeowners cheered on Nov. 3, 2026, when more than 60% of voters approved a constitutional amendment to significantly reduce property taxes.

Under the measure, Amendment 3, a homeowner’s tax break known as a homestead exemption would go from the current US$51,400 to $150,000 in 2027 and increase again to $250,000 in 2028. By shielding more of a home’s assessed value from taxation, this exemption effectively lowers homeowners’ tax bills. New Florida residents who buy a home would also reportedly be eligible for a property tax break, but on a more phased-in basis.

But the measure comes with a hefty price tag. The Florida Legislature’s research arm estimated the measure would reduce annual revenue from property taxes by $11.8 billion. This translates to a 30% reduction in revenue for Florida counties and a 13% cut for smaller municipal governments.

While homeowners will get some relief, the budget crunch due to the lower tax revenue will affect other Floridians in more adverse ways. As economists who have been following the debates over Amendment 3, we argue that local governments will struggle to fund basic services with less money. And we expect more sweeping economic consequences as well – including less affordable residential housing and a broader shift of the tax burden away from relatively wealthier homeowners to those who are less well off.

How Amendment 3 would work

Much of the political momentum for Amendment 3 came from a rise in the cost of living and frustration over rising property taxes. These now average just over $3,000 annually but can run much higher for Floridians with more expensive homes.

In addition to raising the homestead tax exemption,........

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