AJ Naples | Special Real Estate Report

Florida Voters Approve Major Property Tax Changes: What Naples Homeowners and Buyers Need to Know

November 5, 2026 | Naples, Florida

Florida Amendment 3 marks an important decision by Florida voters that could change the property tax landscape for homeowners, second-home owners, and real estate investors throughout the state.

On November 3, 2026, voters approved Amendment 3, a constitutional amendment that significantly expands Florida’s Homestead Exemption and introduces additional protections for certain non-homestead properties.

For homeowners and prospective buyers in Naples and Southwest Florida, the implications deserve a closer look.

While the headlines focus on property tax relief, the actual impact will depend on how a property is used, whether it qualifies as a primary residence, and when its owner established Florida residency.

Here is what Naples property owners and buyers should know.

THE ELECTION RESULT

According to the Florida Division of Elections’ unofficial results, approximately 62% of voters supported Amendment 3, exceeding the 60% threshold required for a constitutional amendment.

The measure introduces several important changes beginning January 1, 2027.

For qualifying homeowners who meet the residency requirements, the Homestead Exemption applicable to non-school property taxes increases to:

• 2027: Up to $150,000 of assessed value
• 2028: Up to $250,000 of assessed value
• 2029 and beyond: Inflation adjustments

The amendment also reduces the annual assessment increase cap for qualifying non-homestead properties from 10% to 5%.

These changes do not mean that property taxes are eliminated. School-related property taxes remain subject to separate rules, and other assessments may continue to apply.

HOMESTEAD EXEMPTION

Florida’s Homestead Exemption is a property tax benefit generally available to qualifying homeowners who establish a property as their permanent residence.

For many Naples homeowners, this has long been an important part of managing the ongoing costs of homeownership.

The newly approved amendment substantially expands the amount of assessed property value that may be exempt from non-school property taxes.

However, the distinction between a home’s market value, assessed value, and taxable value remains essential.

A home valued at $1 million on the open market does not necessarily have a taxable value of $1 million.

Likewise, a $250,000 exemption does not mean a homeowner receives a $250,000 tax reduction. It means that up to that amount of qualifying assessed value may be excluded from certain property tax calculations.

The actual savings depend on the applicable tax rates and the property’s assessment.

Importantly, Amendment 3 does not eliminate Florida’s existing Save Our Homes protection. For qualifying homestead properties, annual increases in assessed value remain limited to 3% or the applicable Consumer Price Index increase, whichever is lower. Existing portability provisions also remain in place.

SECOND HOMES

This is particularly relevant in Naples, where many properties are purchased as seasonal residences, vacation homes, or investments.

A second home does not ordinarily qualify for Homestead Exemption simply because its owner spends several months each year in Florida.

However, Amendment 3 also provides a potentially meaningful change for non-homestead properties.

The annual cap on increases in assessed value for qualifying non-homestead properties is reduced from 10% to 5%.

This may benefit owners of eligible second homes, vacation properties, rental residences, and certain commercial properties.

It is important to understand what this protection does — and what it does not do.

The cap limits qualifying annual increases in assessed value. It does not guarantee that a property’s total tax bill can increase by no more than 5%.

Changes in millage rates, assessments, exemptions, and other factors may still affect the amount owed.

For Naples property owners who maintain their primary residence elsewhere, this is one of the most significant provisions worth understanding.

FLORIDA RESIDENCY

One of the less-publicized provisions of Amendment 3 concerns people who are not Florida residents as of December 31, 2026.

Under the amendment, those individuals generally will not immediately qualify for the newly expanded Homestead Exemption when they later establish a qualifying Florida homestead.

Instead, they may initially receive the existing exemption structure, with eligibility for the increased exemption beginning in the fifth year of their qualifying homestead exemption, subject to the amendment’s constitutional limitations.

This creates an important distinction between established Florida residents and individuals relocating to Florida beginning in 2027.

For prospective buyers considering making Naples their permanent home, residency status and timing may become important parts of their financial planning.

However, purchasing a property before December 31, 2026, does not automatically establish Florida residency or guarantee eligibility for the expanded exemption.

Homeowners should consult the appropriate Property Appraiser and qualified tax or legal professionals before making residency-related decisions.

An important distinction for prospective buyers: Establishing Florida residency by December 31, 2026, does not necessarily require purchasing a home by that date. Under the amendment, qualifying established Florida residents may become eligible for the expanded exemption when they subsequently establish a Florida homestead. Individual circumstances and applicable residency requirements remain important.

NAPLES REAL ESTATE

Naples has a distinctive real estate market, with a substantial mix of permanent residents, seasonal homeowners, and investment property owners.

That makes the potential impact of Amendment 3 especially interesting.

For established permanent residents, expanded Homestead Exemption benefits could reduce the ongoing cost of owning a primary residence.

For qualifying second-home and investment-property owners, the lower assessment growth cap could provide additional predictability over time.

For buyers relocating from other states, the new residency rules introduce another factor to consider when evaluating long-term ownership costs.

Could these changes influence purchasing decisions?

Possibly.

Property taxes are one component of the overall cost of ownership, alongside insurance, association fees, maintenance, and financing.

However, it would be premature to conclude that Amendment 3 will automatically increase Naples property values or stimulate buyer demand.

Real estate decisions remain influenced by broader economic conditions, available inventory, interest rates, location, and the individual characteristics of each property.

There is also another side to the discussion.

Property taxes help fund local government operations and public services. Reductions in property tax revenue may require adjustments in local budgets, spending priorities, or other sources of revenue.

How those changes unfold will be important to monitor in Collier County and throughout Southwest Florida.

OUR PERSPECTIVE

At AJ International Group Naples, we believe informed real estate decisions begin with understanding more than the purchase price.

Whether you are purchasing a permanent residence in Naples, considering a seasonal condominium in Pelican Bay, exploring a waterfront property in The Moorings, or evaluating an investment opportunity, ongoing ownership costs deserve careful attention.

Property taxes are an important part of that calculation — but they should never be considered in isolation.

The approval of Amendment 3 adds another layer to the conversation, particularly when comparing primary residences with second homes and investment properties.

For buyers, the key is understanding how a property’s assessed value and potential exemptions may change following a purchase.

For existing homeowners, it is important to review how the new rules may apply to their particular circumstances.

And for sellers, understanding these changes may help address questions prospective buyers have about the future cost of ownership.

With more than 26 years of real estate experience, we approach these conversations with a focus on careful research, local market knowledge, and practical guidance.

FINAL THOUGHTS

Florida’s approval of Amendment 3 represents a significant change in the state’s property tax framework.

But as with most real estate matters, the details are just as important as the headline.

The difference between a permanent residence and a second home, the timing of Florida residency, and the distinction between assessed value and actual property taxes can materially affect the outcome for an individual homeowner.

As the changes take effect, we will continue to follow developments relevant to Naples and Southwest Florida property owners.

Because understanding the rules is an important part of making confident real estate decisions.

NAPLES REAL ESTATE GUIDANCE

Local Knowledge. Thoughtful Guidance. Informed Decisions.

At AJ International Group Naples, we help buyers and sellers understand the individual characteristics of the Naples real estate market, evaluate their options, and make well-informed property decisions.

With 26 years of real estate experience in the United States and Europe, we combine local knowledge with a personal, thoughtful approach to real estate.

Alexandra Janz & Jürgen Haeringer

AJ International Group Naples
William Raveis – Florida, LLC
Naples · Bonita Springs · Southwest Florida

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