Last updated: November 5, 2026
Florida voters approved Amendment 3 on November 3, 2026. The measure raises the homestead exemption on property taxes other than school district taxes, lowers the annual assessment-increase cap on non-homestead property, and limits how counties and cities can spend property tax revenue. It takes effect January 1, 2027.
If you live in your house in Panama City Beach or along 30A as your permanent residence, this is the amendment that hits your tax bill. If the property is a short-term rental or a second home you do not homestead, the bigger exemption does not apply to you. Read that twice before you celebrate.
What passed
Ballot title: Increased Homestead Exemption; Lower Cap On Increases In Non-Homestead Property Assessments.
Per Florida Election Watch (unofficial until certified):
- Yes: 4,917,796 (61.98%)
- No: 3,016,195 (38.02%)
- Total votes: 7,933,991
- Amendments need 60% to pass
Amendments 1 and 2 failed. This post is about Amendment 3 only.
Effective date: January 1, 2027 (official amendment text).
What it means if you homestead your primary residence
Florida already gives homesteaded owners:
- $25,000 off assessed value for all taxes, including school taxes
- An additional exemption on assessed value above $50,000 for non-school taxes only (up to $26,411 for the 2026 tax year, per the Florida Department of Revenue CPI bulletin)
Amendment 3 changes the non-school homestead exemption to:
- Up to $150,000 beginning January 1, 2027
- Up to $250,000 beginning January 1, 2028
- Inflation adjustments beginning January 1, 2029
School district taxes still get only the $25,000 homestead exemption. The new dollars do not cut school millage.
New Florida residents: if you were not a Florida resident on December 31, 2026, the official text keeps you on the existing-style non-school exemption (up to $50,000) until the fifth year of exemption. Then you move to the full amount, to the extent the U.S. Constitution allows. Confirm your status with the county property appraiser.
Save Our Homes: once homesteaded, assessed value on your primary residence can rise by no more than 3% a year or CPI, whichever is lower. That cap is separate from Amendment 3. The new exemption sits on top of your homesteaded assessed value. Do not confuse Save Our Homes with the non-homestead assessment cap (that one drops from 10% to 5% for rentals, commercial property, and second homes, except for school taxes).
What Amendment 3 does not do
- It does not reduce school district taxes through the new larger exemption
- The larger homestead exemption is for people who live in the home as their permanent residence. Short-term rentals and second homes that are not homesteaded do not get it
- The 10%-to-5% assessment-increase cap applies to non-homestead property. It is a different tool for a different class of property
- Counties and municipalities must use property tax revenue for public safety, education and schools, infrastructure, natural resources, bond debt service, employee retirement benefits, and operations and administration (ballot summary). That is a spending rule, not a personal tax cut
For local buying context, see how much house you can afford in Panama City Beach and best areas to live full time in Panama City Beach.
Estimated savings on real homesteaded homes
Figures below are estimates, not tax advice and not a tax bill. They use published 2025 millage, exclude school millage from the new exemption, and compare the current non-school homestead exemption ($51,411 under the 2026 structure) with $150,000 in 2027 and $250,000 in 2028. Your TRIM notice and tax bill control. Confirm homestead filing and millage code with the Bay County or Walton County Property Appraiser.
Example 1: Panama City Beach (Bay County)
119 Hombre Circle, Panama City Beach, FL 32407 (The Glades, single-family)
2025 certified roll (Florida DOR via public tax-roll match): market value $375,220; assessed value $270,712; taxable value $219,990. The $50,722 gap between assessed and taxable matches a homestead exemption on the roll. Save Our Homes also holds assessed value below market.
Non-school millage used: 5.5769 mills (2025 Panama City Beach city-limits rate: county 5.4362 + beach mosquito 0.1200 + NWFL water management 0.0207). School mills are excluded.
Non-school exemption | Est. annual savings vs current | |
|---|---|---|
Current (2026 structure) | $51,411 | baseline |
2027 | $150,000 | about $550 |
2028 | $250,000 | about $1,108 |
Math: $98,589 and $198,589 of additional exempt value × 5.5769 / 1,000. Confirm your millage code on your TRIM notice; some PCB-area parcels sit in a fire MSTU district with a higher non-school rate.
Example 2: Santa Rosa Beach (Walton County)
41 Riker Avenue, Santa Rosa Beach, FL 32459 (Grayton Bayou, detached single-family)
2025 roll: market value $562,746; assessed value $562,746; taxable value $512,024. Homestead exemption gap: $50,722.
Non-school millage used: 4.7747 mills (south Walton stack: county 3.5190 + South Walton Fire 1.0000 + NWFWMD 0.0207 + South Walton Mosquito 0.2350). School mills excluded.
Non-school exemption | Est. annual savings vs current | |
|---|---|---|
Current (2026 structure) | $51,411 | baseline |
2027 | $150,000 | about $471 |
2028 | $250,000 | about $948 |
Example 3: Inlet Beach / Watersound Origins (Walton County)
81 Heartwood Street, Inlet Beach, FL 32461 (Watersound Origins, detached single-family)
2025 roll: market value $1,023,233; assessed value $873,379; taxable value $822,657. Homestead exemption gap: $50,722. Assessed value sits below market under Save Our Homes.
Same south Walton non-school millage: 4.7747.
Non-school exemption | Est. annual savings vs current | |
|---|---|---|
Current (2026 structure) | $51,411 | baseline |
2027 | $150,000 | about $471 |
2028 | $250,000 | about $948 |
Dollar savings look smaller here than in high-millage Florida counties because Panama City Beach and south Walton already run low non-school millage. The exemption increase is still real money every year once it is fully phased in.
Neighborhood context: Panama City Beach, Santa Rosa Beach, Inlet Beach, and Roger's 30A Realtor page.
What you should do next
- Confirm whether your property is homesteaded for the coming tax year.
- If you own and live in the home as your permanent residence, file or renew with the county property appraiser by the statutory deadline (commonly March 1). Bay County: baypa.net. Walton County: waltonpa.com.
- Read your TRIM notice when it arrives. Match the millage code, assessed value, and exemptions to the math above.
- If you are buying a primary residence in PCB or along 30A, ask how homestead and Save Our Homes change the first full tax year after closing. Start with the buyer FAQ and current home search. Sellers who need a clear net sheet can start on the sellers page.
Call Roger Rietsema 850-596-5844 if you are buying or selling a primary residence in Panama City Beach or along 30A and want a plain reading of how Amendment 3 fits your address.
About the author
Roger Rietsema is a Realtor with Allison James Estates & Homes, licensed in Florida since May 2003, with more than 600 closed sales in Panama City Beach and along 30A.
Sources
- Florida Election Watch, Amendments: https://floridaelectionwatch.gov/Amendments
- Amendment 3 full text (English): https://flelectionfiles.floridados.gov/enightfilespublic/20261103_Amendment_03_english.pdf
- Florida Department of Revenue, Additional Homestead Exemption Adjustment (CPI): https://floridarevenue.com/property/Documents/cpi_homestead_exemption.pdf
- Fla. Stat. §196.031 (homestead exemption): https://www.flsenate.gov/Laws/Statutes/2026/0196.031
- Bay County Tax Collector millage rates: https://baycountyfltax.gov/property-taxes/millage-rates/
- BoundSight Bay County millage by district (DOR TACD 2025): https://boundsight.com/property-tax-estimator/bay-county
- Parcelmath Walton County property taxes: https://parcelmath.com/counties/walton-property-taxes/
- OpenMillage Walton County 2025: https://openmillage.com/fl/2025/walton-county/
- 119 Hombre Circle tax-roll values: https://movewithmomentum.com/listings/idx-cpar/119-hombre-circle-panama-city-beach-fl-32407-panama-city-beach
- 41 Riker Avenue tax-roll values: https://movewithmomentum.com/listings/idx-emeraldcoast/41-riker-avenue-santa-rosa-beach
- 81 Heartwood Street tax-roll values: https://movewithmomentum.com/listings/idx-emeraldcoast/81-heartwood-street-inlet-beach
- Bay County Property Appraiser: https://baypa.net/
- Walton County Property Appraiser: https://waltonpa.com/
