This isn't tax advice, and the Legislature still has to pass laws that spell out how parts of the amendment will work. But the basic rules for homestead, Save Our Homes and new construction are already in Florida law, and they don't change. Amendment 3 makes the homestead exemption bigger, so getting those rules wrong during a teardown now costs more.
What changes
Amendment 3 at a glance
| Item | What the amendment does |
|---|---|
| Homestead exemption, non-school taxes | Up to $150,000 of assessed value starting January 1, 2027, and up to $250,000 starting January 1, 2028, with yearly inflation adjustments starting in 2029. Today it's about $50,000. |
| School taxes | No change. The $25,000 exemption that applies to school taxes stays the same. |
| Who gets the bigger exemption | Owners who are permanent Florida residents as of December 31, 2026 and have or establish homestead. People who become residents on or after January 1, 2027 start at $50,000 and become eligible for the larger exemption in their fifth year. |
| Save Our Homes and portability | No change. Assessment increases on a homestead stay limited to 3% or inflation, whichever is less, and portability works as it does now. |
| Rentals, second homes, commercial | No new exemption. The yearly cap on assessment increases for non-school taxes drops from 10% to 5%. |
| When you'll see it | The changes take effect January 1, 2027. They first show up on TRIM notices in August 2027 and tax bills in November 2027. 2026 bills don't change. |
Based on the amendment as described by the Florida Senate's bill analysis and county property appraisers. Implementing legislation can change how parts of it are administered.
The rule that matters most
Your homestead depends on January 1
You have to live there on January 1
Under Florida law, the homestead exemption goes to an owner who, on January 1, holds title to the property and makes it their permanent residence. If the house is gone or under construction on January 1 and you're living somewhere else, you may not qualify for that year.
The storm exception doesn't cover a voluntary teardown
Florida protects the homestead when a home is damaged or destroyed by misfortune or calamity, like a hurricane or a flood, and is uninhabitable on January 1. That protection is written for damage, not for an owner who chooses to demolish. Many property appraisers deny the exemption while a home is demolished and being replaced, and some decide case by case.
Losing homestead also resets Save Our Homes
The Florida Department of Revenue says that losing or removing homestead triggers a reassessment and removes the Save Our Homes benefit. If you've owned the house for years, that difference between your capped value and the market value can be the biggest number on your tax bill.
Amendment 3 raises the stakes
Losing a $50,000 exemption for a year hurt. Losing a $150,000 or $250,000 exemption for a year, on top of a Save Our Homes reset, hurts a lot more. A teardown that crosses a January 1 without a plan can cost more than it did before the amendment.
Planning around it
How to plan a homestead teardown after Amendment 3
Call your property appraiser first
Before you sign a demolition contract, ask the property appraiser in your county how they handle homestead and Save Our Homes when an owner demolishes and rebuilds. Practices differ, and their answer decides your timing. Ask them to put it in writing if they can.
Count the January 1s
Lay out the calendar: demolition permit, demolition, design, building permit, construction and the certificate of occupancy. A demolition and rebuild in South Florida often takes more than a year, so it will usually cross at least one January 1. Know which ones and where you'll be living on each.
Have the new building permit close
Demolishing long before the new house is approved stretches the time the lot sits empty. Getting the building permit lined up before the house comes down shortens the gap. In the City of Miami, a full demolition permit alone has been spending a median of about 134 days in plan review.
Ask about portability
Portability lets you move your Save Our Homes benefit to a new homestead established within three years of January 1 of the year you abandoned the old one. Ask the property appraiser whether and how it can apply when the new homestead is a rebuilt house on the same lot.
Move in and file
Once you're living in the new house, file for homestead by March 1 of the next tax year. The new house itself is added to the assessment at its market value the January 1 after it's substantially complete, and Save Our Homes limits the increases from there.
If a storm did the damage
After this week's floods: the calamity rule
Your homestead can continue
If a homestead is damaged or destroyed by misfortune or calamity, like the flooding that hit Broward and Palm Beach this week, and it's uninhabitable on January 1, Florida law lets the exemption continue. You have to notify the property appraiser that you intend to repair or rebuild and live there, and not claim homestead anywhere else.
The three-year clock
Repair or rebuilding has to start within three years after the January 1 following the damage. Missing that deadline, or letting the building permit lapse after it, counts as abandoning the homestead.
The 50% rule may decide repair or rebuild
In a flood zone, if the damage costs 50% or more of the building's market value to repair, the house has to be brought up to current flood rules, which often means elevating or replacing it.
For investors
Rentals, flips and the new 5% cap
No new exemption
Rentals, second homes and investment property don't get the bigger homestead exemption. What changes is the cap: the yearly limit on assessment increases for non-school taxes drops from 10% to 5% starting in 2027.
Buying still resets the value
For residential property with nine units or fewer, a sale or change of ownership resets the assessment to market value the next January 1. The new 5% cap starts from that reset value.
So does building new
New construction is added to the assessment at its market value the January 1 after it's substantially complete. A teardown and rebuild produces a big one-time jump, and after that the 5% cap keeps the non-school portion more predictable than it was under 10%.
Time the demolition around January 1
Property is assessed on its condition on January 1. If the house is down by then, that year's assessment is usually for the land only. If it comes down just after, you pay for the house all year.
What's still open
Details to watch in 2027
Implementing legislation
The Legislature has to pass laws that set out how parts of the amendment are administered, including how local governments can raise the exemption further. Those laws can change details.
Local budgets
Cities and counties will be working out how to replace the revenue. That could show up in fees, millage rates or services, so watch your August 2027 TRIM notice.
Your appraiser's practice
How each county handles a homestead during a voluntary teardown was never spelled out in the statute, and it's worth asking again in 2027 as offices update their guidance.
Related
Keep reading
Common questions
Frequently asked questions
What does Florida's Amendment 3 do?
It raises the homestead exemption from non-school property taxes to up to $150,000 of assessed value starting January 1, 2027, and up to $250,000 starting January 1, 2028, for owners who are permanent residents by December 31, 2026. It also lowers the yearly assessment cap on non-homestead property for non-school taxes from 10% to 5%. Save Our Homes and portability don't change.
When does Amendment 3 take effect?
January 1, 2027. The changes first appear on TRIM notices in August 2027 and tax bills in November 2027. 2026 tax bills don't change.
Do I lose my homestead exemption if I tear down my house to rebuild?
You can. The exemption depends on living in the home on January 1, and Florida's protection for homes destroyed by a storm or other calamity doesn't cover a voluntary demolition. Many property appraisers deny the exemption while the house is gone and you live elsewhere, and some decide case by case. Ask your county property appraiser before you demolish.
What happens to Save Our Homes if I demolish my house?
If you lose the homestead exemption, the Florida Department of Revenue says the property is reassessed and the Save Our Homes benefit is removed. Ask the property appraiser whether portability can carry the benefit to the rebuilt house.
How is a new house taxed in Florida?
New construction is added to the assessment at its market value the January 1 after it's substantially complete. On a homestead, Save Our Homes limits increases after that. On investment property, the non-homestead cap applies, which drops to 5% for non-school taxes under Amendment 3.
My house was damaged in this week's flood. Do I keep my homestead?
If the home is uninhabitable on January 1 because of the damage, Florida law lets the exemption continue if you notify the property appraiser that you'll repair or rebuild and live there, and start the work within three years after the January 1 following the damage.
Does Amendment 3 help landlords and investors?
There's no new exemption for rentals or investment property, but the yearly cap on assessment increases for non-school taxes drops from 10% to 5% starting in 2027. The assessment still resets to market value after a sale and when new construction is completed.
This article is general information, not tax or legal advice. It's based on the amendment as described by the Florida Senate's analysis and county property appraisers, Florida Statutes 196.031 and the Florida Department of Revenue as of November 5, 2026. Implementing legislation and local practice can change how it applies. Confirm your situation with your county property appraiser and a tax professional before you demolish.