Should You Become a Florida Resident Before December 31, 2026? What Amendment 3 Means for Buyers Moving to Sarasota

Updated October 2026 | By Darren Dowling, Founder, Beyond Realty

The short answer

If Florida voters approve Amendment 3 on November 3, 2026, people who are permanent Florida residents by December 31, 2026 would qualify for a much larger homestead exemption starting in 2027. People who become Florida residents on or after January 1, 2027 would start with a $50,000 exemption and wait four years before the larger exemption applies. If you were already planning a move to Sarasota or Manatee County, the calendar now matters.

What Amendment 3 would change

• Bigger homestead exemption on non-school taxes: up to $150,000 of assessed value beginning January 1, 2027, and up to $250,000 beginning January 1, 2028, with inflation adjustments starting in 2029.

• School taxes stay the same: only the first $25,000 of a homestead's assessed value would remain exempt from school taxes, so most owners would still receive a school tax bill.

• Second homes and rentals: the yearly cap on assessed value increases for non-homestead property would drop from 10% to 5% for non-school taxes.

• It needs 60% of the vote. If approved, it takes effect January 1, 2027 and would first show up on 2027 tax bills.

For comparison, the current homestead exemption for the 2026 tax year is up to $51,411.

Why December 31, 2026 is the date to know

Under the amendment, residential owners who are permanent Florida residents as of December 31, 2026 would be eligible for the larger exemption amounts beginning in 2027. According to the Pinellas County Property Appraiser's published FAQ, someone who establishes Florida residency by December 31, 2026 but has not bought a home yet would still be eligible for the higher amount when they buy and apply for homestead.

Anyone who establishes Florida residency on or after January 1, 2027 would begin with the new-resident exemption of $50,000, adjusted for inflation starting in 2028. After keeping a Florida homestead exemption for four years, they would become eligible for the larger exemption beginning January 1 of the fifth year.

What it could be worth

The exemption reduces your taxable value, not the tax rate. Florida TaxWatch offers a simple way to estimate the difference: multiply your total non-school millage rate by $98.59 for 2027 and by $198.59 for 2028. At the statewide average non-school rate of 10.5 mills, that works out to about $1,035 saved in 2027 and about $2,085 saved in 2028.

For a buyer who arrives in 2027 instead, those savings would be delayed for roughly four years. Your exact number depends on the community and its millage rate, which is why we include tax and insurance figures in our community cost of ownership guides.

What "permanent Florida resident" usually looks like

Residency is about where your true, permanent home is, and you should be able to show it. Steps most of our relocation clients take include:

• Getting a Florida driver license and registering your vehicles in Florida

• Registering to vote in Florida

• Filing a Declaration of Domicile with the Clerk of Court

• Moving your primary home, mail, banking and professional relationships here

The homestead exemption itself has its own rules: you must own the home and live in it as your permanent residence on January 1, then apply with the county property appraiser by March 1.

If you are leaving a high-tax state like New York or California, talk with your CPA about how your old state treats a mid-year move. Those states are known for reviewing residency changes closely.

What we are telling clients right now

• If a move to Florida was already in your plans for the next year or two, it is worth asking your CPA whether making it official before December 31 makes sense for you.

• You do not need to close on a home before year end to establish residency, but you do need a real Florida home base.

• Nothing is final until the votes are counted. We will update this article after the November 3 election.

Frequently asked questions

Do I have to buy a home in Florida before December 31, 2026?

Not under the proposal as the Pinellas County Property Appraiser describes it. What counts is being a permanent Florida resident by December 31, 2026. The home purchase and homestead application can come later.

Does Amendment 3 help second homes?

Second homes do not qualify for homestead. They could benefit from the lower 5% cap on yearly assessed value increases for non-school taxes, but that limits assessed value, not tax rates.

Would Amendment 3 eliminate property taxes in Florida?

No. School taxes continue, and local governments still set millage rates each year. The amendment does allow the Legislature to set a procedure for local governments to exempt more of a homestead's value in the future.

What happens if Amendment 3 does not pass?

Current law stays in place, including the existing homestead exemption and the Save Our Homes cap, which limits yearly assessed value increases on a homestead to 3% or inflation, whichever is less.

How do I estimate my total savings from moving to Florida?

Start with our Florida Tax Advantage Savings Calculator, which compares your current state's taxes with Florida. Then look at the full cost of owning in the community you like, including property tax, insurance and HOA or club dues.

Thinking about making your move official this year?

Book a Strategy Session with Darren Dowling. We will walk through timing, the communities that fit your lifestyle, and what ownership really costs, so you can make the decision with your CPA and a clear plan.

Darren Dowling, Founder | Beyond Realty

2170 Main Street, Suite 103, Sarasota, FL 34237

Direct: 941-204-0493 | [email protected] | www.beyondrealtyfl.com

Sources

• Pinellas County Property Appraiser, Proposed 2026 Florida Property Tax Amendment 3 FAQs: www.pcpao.gov/amendment3

• Florida TaxWatch, Florida Property Tax Resource Center: floridataxwatch.org/research/florida-property-tax-resource-center

• Florida Chamber of Commerce, Florida's 2026 Property Tax Amendment 3: www.flchamber.com/amendment3

This article is general information, not tax or legal advice. Tax rules change and every situation is different, so talk with your CPA or attorney before making residency or tax decisions.