Bev Murray Real Estate

Florida voters approved Amendment 3 on November 3, 2026, introducing significant property tax changes beginning January 1, 2027. While the biggest savings will benefit homeowners with a Florida homestead exemption, owners of second homes, vacation properties and investment properties also stand to benefit.

For qualifying Florida homeowners, the homestead exemption for non-school property taxes will increase to $150,000 in 2027 and $250,000 in 2028, with annual inflation adjustments beginning in 2029. Florida's existing Save Our Homes protection remains unchanged, limiting annual increases in assessed value for homesteaded properties to 3% or inflation, whichever is lower.

These changes will first be reflected in property tax bills issued in November 2027. Property owners should continue to pay their 2026 tax bills as issued.

What About Second Homes and Vacation Properties?

Particularly relevant to Sarasota's substantial second-home market, Amendment 3 reduces the annual cap on increases in assessed value from 10% to 5% for non-school property taxes. This also applies to qualifying rental and investment properties.

For example, a vacation home assessed at $1 million could previously see its assessed value increase by up to $100,000 annually. Under the new rules, that increase would be limited to $50,000 for non-school tax purposes, assuming market values support it.

For owners of second homes and vacation properties in areas such as Siesta Key, Longboat Key and Bird Key, the lower cap offers additional protection against rising assessments over time.

This is welcome news for seasonal residents and property owners planning to enjoy their Sarasota homes for years to come.

Does the 5% Cap Mean Your Property Tax Bill Can Only Increase by 5%?

Not necessarily. The new cap limits annual increases in assessed value used for non-school taxes, rather than increases in the actual tax bill.

School district property taxes remain unaffected by the new cap, and changes in local tax rates or non-ad valorem assessments, such as certain service charges, can also influence the total amount owed.

What About School District Property Taxes?

Florida property tax bills include taxes levied by school districts, counties, municipalities and other local taxing authorities. Amendment 3 treats school district taxes differently.

For second homes, vacation properties and investment properties, the new 5% assessment cap applies only to non-school taxes. School district taxes continue to be calculated without the benefit of the new 5% cap.

For primary residences, the expanded homestead exemption also excludes school district taxes. Qualifying homeowners will continue to receive the existing school-tax homestead exemption, but the larger exemption introduced by Amendment 3 will apply only to non-school taxes.

This distinction is helpful when estimating future ownership costs, particularly for higher-value Sarasota properties.

For additional information, see the Sarasota County Tax Collector's official Amendment 3 explanation.

Florida property taxes involve several different assessments and exemptions. Here's a simple visual guide to what Amendment 3 changes and what remains the same.

Buying a Sarasota Home? Understand What Happens After a Sale

An important distinction for buyers: The previous owner's assessment cap does not transfer with the property.

Properties are generally reassessed to market value following a sale, with the new 5% cap applying to subsequent annual increases for non-school taxes.

A vacation home purchased in November 2026, for example, would generally be reassessed in 2027, with the 5% cap limiting qualifying annual increases beginning in 2028.

This is particularly important when evaluating Sarasota waterfront properties and established homes that may have been owned by the same family for many years.

A property's current tax bill may reflect years of assessment protections, making it considerably lower than what a new owner might pay.

The good news is that buyers can plan ahead. The Sarasota County Property Appraiser's Tax Estimator can help buyers develop a more realistic estimate of future property taxes. Estimates are approximate and should be checked against the amendment's new rules as they are implemented.

Understanding these costs before purchasing allows buyers to make more informed decisions and budget confidently for their new home.

Relocating to Florida?

For buyers considering a permanent move to Sarasota, Amendment 3 introduces another important consideration.

Buyers who were not Florida residents on December 31, 2026, will generally need to wait until their fifth year of homestead eligibility to receive the expanded exemption, subject to federal constitutional requirements.

However, qualifying new residents can still receive Florida's existing homestead exemption before becoming eligible for the expanded benefit.

For those planning to relocate to Sarasota, understanding when different homestead benefits become available can be a useful part of long-term financial planning.

What Does Amendment 3 Mean for Sarasota Real Estate?

For existing homeowners, Amendment 3 offers meaningful potential tax savings, while second-home and vacation-property owners gain greater protection against rising assessments.

These changes are particularly relevant to Sarasota's seasonal residents and buyers considering waterfront homes, condominiums and vacation properties throughout our barrier islands and established neighborhoods.

Property taxes are an important part of the overall cost of ownership, alongside insurance, maintenance, association fees and other expenses. Understanding these costs helps buyers compare properties more effectively and plan for the years ahead.

Amendment 3 will also change property tax revenue available to local governments. How individual communities respond will become clearer as the changes are implemented, but Florida property owners can look forward to additional tax benefits and assessment protections.

Whether these changes influence buyer demand remains to be seen, but they are certainly worth considering when evaluating the cost of owning Florida real estate.

Considering Buying or Selling a Sarasota Property?

Since 1999, Bev Murray has helped buyers and sellers throughout Sarasota's waterfront, island and established neighborhood markets. As a Broker Associate with Berkshire Hathaway HomeServices Florida Realty, her experience includes working with seasonal homeowners, relocating buyers and clients evaluating properties for lifestyle, personal use and long-term value.

With more than $400 million in Sarasota-area real estate bought, sold and built, Bev brings practical property experience to the decisions that matter when buying or selling a home.

If you're considering a Sarasota-area property purchase or sale, contact Bev Murray for a personal consultation, or subscribe to our monthly newsletter for Sarasota real estate news, market developments and helpful property insights.

Official Sources and Further Reading

• Sarasota County Tax Collector – Amendment 3
• Sarasota County Property Appraiser – Tax Estimator
• Florida Senate – Non-Homestead Residential Property Assessment Rules

This article provides general real estate information, not legal or tax advice. Individual property assessments, exemptions and tax obligations vary. Consult the appropriate County Property Appraiser or qualified tax professional for guidance on your circumstances.