Amendment 3: Potential Property Tax Relief for Florida Landlords

As the November 2026 election approaches, Florida landlords are closely watching Amendment 3, a constitutional measure that could alter property tax assessments. While the amendment is widely discussed for its homestead exemption expansions, a key provision for investors is the proposed reduction of the annual assessment cap on non-homestead properties from 10% to 5%, effective January 1, 2027.

If passed, this change would provide a more predictable tax environment for rental property owners. Currently, non-homestead properties—which include most rental units—are subject to a 10% annual cap on assessment increases. Lowering this to 5% would help mitigate the impact of rising property values on annual tax bills, though it is important to note that this cap does not apply to school district taxes, which are reassessed at full market value annually.

Landlords should be aware that this cap is not permanent; it resets upon the sale or transfer of the property. Investors are advised to consult with their local property appraiser regarding how specific ownership structures, such as holding properties in an LLC, may interact with these assessment rules to ensure they are maximizing potential tax protections.