For a household relocating to Palma Ceia, the new homestead exemption depends on a date that is seven weeks away. Under the Amendment 3 ballot summary, anyone who is not a Florida resident on December 31, 2026 gets the existing homestead exemption when they qualify. The larger exemption starts only with their fifth year of exemption.
That date can change what a new owner pays in Tampa. The size of the exemption itself is a smaller factor in this neighborhood. At this year's tax rates, Amendment 3 lowers a homesteaded City of Tampa bill by roughly the same dollar amount no matter what the house is worth. On a Palma Ceia purchase, the rules that were already in place before November 3 still drive most of the tax bill.
What passed on November 3
Florida voters approved Amendment 3 with 61.98 percent "yes," just above the 60 percent the constitution requires, according to the Division of Elections' first set of unofficial returns. The ballot text raises the homestead exemption for all non-school taxes to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments after that. It also cuts the annual cap on assessment increases for non-homestead property from 10 percent to 5 percent. It takes effect January 1, 2027.
The Hillsborough County Tax Collector explains that the November 2026 bill covers the 2026 tax year, so the amendment does not change it. The first effects show up in tax year 2027.
The date that sorts buyers into two groups
The Tampa Bay Times summed up the rule this way: if you move to Florida on or after January 1, 2027, your exemption does not increase until your fifth year of residency. For buyers who are first claiming homestead, the Tax Collector says a waiting period may apply depending on when their Florida residency began. Owners who already have a homestead exemption on file do not need to refile. The larger exemption applies automatically.
Florida courts have looked at this kind of waiting period before. The Times reported that in the 1980s, the Florida Supreme Court struck down a similar five-year wait for new residents to receive a larger exemption. In the 1983 decision, the justices wrote:
"It is constitutionally prohibited for this state to impose different taxes on its citizens based solely on their length of permanent residence in the state."
According to the same report, Hillsborough County Property Appraiser Bob Henriquez said it could be only a matter of time before the residency requirement is challenged in court, and Pinellas Property Appraiser Mike Twitty agreed. The Florida Chamber's November 4 summary says property appraisers will make residency determinations and that implementing legislation is expected to provide more detail. The Times also reported that the Legislature must pass implementing laws before any bill is cut. Governor DeSantis has said lawmakers will choose the dates for that special session.
The test in the ballot summary is whether someone is a Florida resident on December 31, 2026. It does not mention a closing date.
A fixed dollar amount on a bill that grows with value
The Hillsborough County Property Appraiser's final 2026 millage table puts the total rate for a City of Tampa parcel at 19.7353 mills. Amendment 3 does not touch the school share of that rate.
- School levy: 6.3340 mills, outside Amendment 3
- County levy, including library services: 5.9795 mills
- City of Tampa: 6.2076 mills
- Port Authority, HART, Children's Board and SWFWMD combined: 1.2142 mills
That leaves 13.4013 non-school mills for the larger exemption to work against. The Tax Collector describes the change as a non-school exemption that goes from $50,000 today to $150,000 in 2027 and $250,000 in 2028. That means another $100,000 of value is exempt in 2027 and another $200,000 in 2028. At 2026 rates, the yearly savings come to about $1,340 in 2027 and about $2,680 in 2028 for a homestead assessed at $250,000 or more whose owner qualifies for the larger exemption. An owner subject to the fifth-year rule keeps the existing exemption until then. Bay News 9 quoted a real estate executive with almost the same estimate, about $1,300 in 2027 and $2,700 in 2028, who added that mortgage rates, home prices and insurance still affect affordability.
The dollar figure stops growing at $250,000 of assessed value. The bill keeps growing above that, so the savings shrink as a share of it. The table below uses illustrative assessed values, not neighborhood sales data, and assumes 2026 non-school rates hold.
| Illustrative assessed value | Non-school tax with today's $50,000 exemption | Amendment 3 savings by 2028 | Share of the non-school tax removed |
|---|---|---|---|
| $350,000 | about $4,020 | about $2,680 | about two-thirds |
| $1,200,000 | about $15,411 | about $2,680 | about 17 percent |
| $2,000,000 | about $26,133 | about $2,680 | about 10 percent |
The Times' October 24 walkthrough found the same pattern. First-time homeowners and owners of lower-value homes could have the largest share of their bills cut. Higher-value owners with long-standing Save Our Homes protection benefit proportionally less. FOX 13 quoted Henriquez saying each owner's savings depend on assessed value, how long they have owned the home, homestead status and other factors.
What still sets a new owner's bill
In a neighborhood that dates to the early 1920s, many sellers have owned their homes for a long time. The tax bill a buyer sees on such a home is often built on years of capped assessments. The Tax Collector confirms that Amendment 3 leaves the Save Our Homes cap alone. A homestead's assessed value still rises each year by no more than 3 percent or the change in CPI, whichever is lower. The new owner does not get the seller's capped assessment. Florida TaxWatch put the problem directly: Save Our Homes often makes a property's current tax bill much lower than it will be once the home is reassessed without any accrued benefit.
On a higher-priced home, the gap between the seller's capped assessment and the buyer's new assessment can be much larger than $2,680 a year. Two parts of this year's state tax package affect that gap directly.
- Listings will show an estimated tax, not the seller's bill. TaxWatch reports that the final tax package, HB 7031-E, requires online property listings to show estimated ad valorem taxes instead of the current owner's taxes.
- Portability now looks back further. The same package lets an owner transfer accrued Save Our Homes benefit from any homestead they gave up in the prior three years, not only the most recent one. The Tax Collector says Amendment 3 does not change portability rules.
For a move-up family selling one Florida homestead and buying in Palma Ceia, the benefit they can carry over may be worth more than the new exemption. A buyer arriving from another state has no Florida benefit to carry, and also faces the residency date.
Buyers looking at a second home or rental in the area fall under the other half of the amendment. Second homes, rental property, vacant land and commercial property do not get the larger exemption, but their annual assessment cap drops from 10 percent to 5 percent.
The savings figure assumes rates stay put
Every number above uses 2026 millage, and local governments now have less revenue to work with. The Times reported that Tampa's chief financial officer, Dennis Rogero, projects the city will lose $40 million in fiscal 2028 and more than $60 million the following year. Hillsborough County says it could lose up to $367 million a year by 2028. Bay News 9 reported that Tampa prepared two 2027 budget plans, one for each election outcome. Local governments do not expect large revenue reductions until fall 2027, with bigger ones in 2028.
According to FOX 13, Tampa City Council Chair Alan Clendenin said he was not considering a tax increase and would look to economic development instead. WFLA reported that Mayor Jane Castor was still concerned about effects on essential services but said the city would move forward. The Times also reported Governor DeSantis wants to stop local governments from raising other taxes to replace lost revenue. Fees and flat charges such as stormwater and solid waste are billed separately from millage and are not reduced by a value-based exemption.
Quick answers
Does my November 2026 tax bill change? No. The Tax Collector says the November 2026 bill reflects tax year 2026, and the amendment's first effects start in tax year 2027.
I already have a homestead exemption. Do I need to file again? The Tax Collector says the larger exemption applies automatically to owners who already have one on file. First-time filers apply through the Hillsborough County Property Appraiser.
Does Amendment 3 eliminate homestead property taxes? No. It directs the Legislature to set up a process that lets counties and cities raise their own homestead exemptions, up to full assessed value. Special districts can do the same with a referendum. A separate proposal to eliminate homestead taxes, HJR 203, died in the Florida Senate in March.
This post is general information, not legal, tax or financial advice. Residency, homestead and portability questions depend on each household's situation, so please confirm yours with the Property Appraiser, a tax professional or an attorney.
If you are timing a move to Palma Ceia around the December 31 residency date, or want to know what an estimated tax figure means for a specific home, Andrea Webb can go through the numbers with you before you make an offer. Let's Connect.
