Florida Amendment 3 Passed: What the New Homestead Exemption Means for Cape Coral Homeowners in 2027

By Frank Glaab, P.A., Broker Associate, Epique Realty | November 4, 2026

Florida voters approved Amendment 3 on November 3, 2026 (62.03% Yes in the unofficial count, above the 60% needed), raising the homestead exemption on non-school property taxes to $150,000 starting January 1, 2027 and $250,000 in 2028. If you already have a homestead exemption on your Cape Coral home, the larger exemption is expected to apply without a new application, and the first lower bills would arrive in November 2027.

Vote result: Amendment 3 passed with 62.03% Yes (unofficial results), with 7,872,585 votes counted on the Florida Division of Elections results site (37.97% No). Amendments need 60% to pass. It passed, but results stay unofficial until the state certifies them. (Florida Election Watch; Florida Phoenix)

In Lee County, voters backed Amendment 3 by about 69% (199,766 Yes to 90,081 No, unofficial results). To check or apply for your homestead exemption, visit the Lee County Property Appraiser at https://www.leepa.org.

What is Florida Amendment 3, the 2026 property tax amendment?

Amendment 3 is a change to the Florida Constitution that the Legislature passed as CS/HJR 1F in a June 2026 special session (Florida Senate). Its ballot title is "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments" (Florida Division of Elections amendment booklet). Like every constitutional amendment in Florida, it needed at least 60% of the vote.

Here's what it changes:

• Homestead property: For county, city, and other non-school levies, the exemption is "up to the assessed valuation" of $150,000 starting January 1, 2027 and $250,000 starting January 1, 2028. The school-levy exemption stays at $25,000 (DOS booklet).
• Non-homestead property: The annual cap on assessment increases for non-school levies drops from 10% to 5% beginning January 1, 2027 (DOS booklet).
• Local spending: It lists the purposes counties and cities may spend property tax revenue on (Florida TaxWatch).

Some things don't change. According to the property appraisers' FAQ, Save Our Homes, portability, and the senior, veteran, and disability exemptions stay the same. School taxes and non-ad valorem assessments stay on your bill (PAAF FAQ, Pinellas PA version).

How much is the new homestead exemption, and how much will I save on Cape Coral property taxes in 2027?

It depends on your assessed value, your taxing district, and the tax rates local governments set for 2027. Here is an estimate using official numbers. For background, see how Southwest Florida property taxes work.

The formula. Today's homestead exemption is up to $51,411 (Lee County Property Appraiser). If your assessed value is at least $150,000, your non-school exemption grows by $150,000 − $51,411 = $98,589 in 2027. If it's at least $250,000, the increase is $250,000 − $51,411 = $198,589 in 2028. Multiply that by your non-school millage. Florida TaxWatch uses the same method (Florida TaxWatch).

The Cape Coral rate. The Lee County Property Appraiser's 2026 millage book lists a total of 15.3250 mills for District 057, City of Cape Coral. That includes 5.2710 mills of school taxes (2.2480 local board + 3.0230 state law). That leaves 10.0540 non-school mills (Lee PA 2026 Millage Book).

Estimate for a homesteaded Cape Coral home in District 057:

	Extra exemption	× Non-school rate	≈ Estimated yearly savings
2027 (assessed value $150,000 or more)	$98,589	0.010054	≈ $991
2028 (assessed value $250,000 or more)	$198,589	0.010054	≈ $1,997

This is an estimate. It uses 2026 millage rates, which will change. It doesn't include inflation adjustments or your parcel's special assessments. Homes with lower assessed values save less. New residents follow a different schedule. Check your TRIM notice for your parcel's district and rates.

When does the new Florida homestead exemption start?

The amendment takes effect January 1, 2027 (DOS booklet). The property appraisers' FAQ says the change would first show up on August 2027 TRIM notices and on tax bills mailed in November 2027 (PAAF FAQ). The $250,000 level starts with the 2028 tax year. The 2026 bills Lee County is mailing now don't change.

Does Amendment 3 apply to existing homeowners, or do I need to reapply?

If you already have a homestead exemption, the Lee County Property Appraiser says it "renews annually on January 1" as long as nothing changes, such as ownership or use (Lee PA). The Legislature still has to pass a law spelling out how the new-resident rules will be administered (DOS booklet). Watch for guidance from the Lee County Property Appraiser.

New Florida residents: If you didn't have a permanent residence in Florida as of December 31, 2026, you start with $25,000 off school taxes and $50,000 off non-school taxes. You move to the larger amount beginning in your fifth year of exemption, "to the extent permitted by the U.S. Constitution" (DOS booklet). Legal experts have said this part could be challenged in court (Florida TaxWatch). Talk to a tax professional before you change your domicile.

Does Amendment 3 affect buying or selling a home in Cape Coral?

Buyers (homestead exemption when buying a home in Cape Coral): The seller's homestead exemption does not carry over to you. You have to apply for your own, and the assessed value can reset after a sale (Lee PA). Don't use the seller's tax bill as an estimate of yours. Ask for an estimate based on your purchase price. Thinking about a move? See our Relocating to Cape Coral guide, browse Cape Coral homes for sale, or search Gulf-access homes.

Sellers moving within Florida: Portability still lets you carry Save Our Homes savings to your next homestead (PAAF FAQ). With a bigger exemption on top, your carrying costs for a new home could be lower. That's worth factoring in when you decide whether to move up or downsize.

Second-home owners and investors: You don't get the bigger homestead exemption. The 5% cap on non-school assessment increases could slow how fast your assessed value rises.

Local budgets: The state's Office of Economic and Demographic Research estimated a cost to the City of Cape Coral of about $31.1 million in 2028 and $56.9 million in 2029 (Gulfshore Business). Local governments still set millage rates, so watch 2027 budget hearings.

How do I apply for the homestead exemption in Lee County, and what is the deadline?

March 1. To qualify for a tax year, you must own the home and live in it as your permanent residence on January 1, and apply by March 1. Lee County accepts online applications at leepa.org. Bring proof of residency, such as a Florida driver license or ID with the property address, Florida vehicle registration, and voter registration. Questions? Call the Lee County Property Appraiser at (239) 533-6100 (Lee PA). If you close on a home in Cape Coral by December 31, 2026 and move in, apply by March 1, 2027.

Amendment 3 FAQ

Did Florida Amendment 3 pass? Yes. It passed with 62.03% Yes in unofficial results on the state results site, above the 60% it needed. The result becomes official when the state certifies it.

How much is the new Florida homestead exemption? Up to $150,000 for non-school taxes in 2027 and $250,000 in 2028, plus $25,000 for school taxes.

Does Amendment 3 eliminate my property taxes? No. School taxes, special assessments, and any value above the exemption are still taxed.

When will I see lower property tax bills? On the November 2027 bills. You'll see the change first on your August 2027 TRIM notice.

Does Amendment 3 apply to existing homeowners? Yes. If you already have a homestead exemption, it renews every January 1 as long as nothing changes. The larger amount applies starting in 2027. Watch for any new guidance from the Lee County Property Appraiser.

I'm moving to Cape Coral in 2027. Do I get the $250,000 exemption? Not at first. If you weren't a Florida permanent resident on Dec. 31, 2026, you start with $50,000 non-school plus $25,000 school, and move to the larger amount in your fifth year of exemption.

Does Amendment 3 change Save Our Homes or portability? No. The 3% cap and portability stay the same.

How do I apply for the homestead exemption when buying a home in Cape Coral? Apply online at leepa.org by March 1 after you close. You must own the home and live in it as your permanent residence on January 1. The seller's exemption does not carry over to you.

Talk through your numbers

Wondering how Amendment 3 changes what your home could sell for, or what you'd pay on your next one? Get a free home evaluation and I'll walk you through it.

This article is general information, not tax or legal advice. Confirm your exemption and taxes with the Lee County Property Appraiser (leepa.org).

Frank Glaab, P.A. | Broker Associate, Epique Realty | (239) 243-6224 | frank@movecapecoral.com