Florida Question 3 would widen homestead tax relief

Florida voters will decide whether to greatly enlarge the property tax break for primary residences. Question 3 would move the homestead exemption from $50,000 to $150,000 in 2027, followed by $250,000 in 2028. Ron DeSantis estimates that 60% of homeowners would then owe no property tax. Approval requires backing from 60% of voters.

The benefit would apply only to permanent residents. New Floridians would need five years of residency before qualifying. Meanwhile, local budgets could face a sizable gap because owner-occupied properties supply roughly one-third of municipal property tax revenue. A Florida League of Cities analysis found that 85 municipalities could not preserve current public-safety funding even after dropping all other services paid through property taxes. Key West, Pensacola and Fort Myers appear on that list.

Buyers could encounter another tradeoff. Realtor.com projects that removing these taxes could quickly lift Florida home values by 7% to 9%, adding $200 billion to $250 billion across the housing market. Senior economist Joel Berner said that shift could further strain affordability for first-time purchasers. Communities might also reduce services or place more of the tax burden on businesses and properties without homestead status.