Boca Raton's New Homestead Math Hinges on December 31, 2026

On December 31, 2026, Florida's homestead exemption splits into two tiers. Under Amendment 3, which voters approved on November 3, people who had a permanent Florida residence by that date qualify for a $150,000 exemption from non-school property taxes in 2027 and $250,000 starting in 2028. People who had not get $50,000 until their fifth year of exemption.

The amendment passed with 61.98% of the vote in returns reported by WUSF and updated November 6. Florida requires 60% to amend its constitution. As of this Thursday, about seven weeks remain before the cutoff.

The December 31 residency cutoff

The amendment's own text sets the line at whether a person had "maintained a permanent residence in this state as of December 31, 2026." How residency will be proven is still open. The text directs the Legislature to "prescribe uniform procedures" by general law, and the Property Appraiser says more guidance on residency documentation may follow.

Boca Raton's 2026 rates

The exemption only reduces taxable value, so its dollar worth depends on the local tax rate. Most City of Boca Raton parcels fall under Palm Beach County taxing-authority code 06154, which covers 49,458 parcels. Its adopted 2026 rate is 16.9090 mills. Of that, 6.2870 mills are school levies, and the larger exemption does not reduce those. That leaves 10.6220 non-school mills, which is the rate the new exemption applies to:

Why the 10.6220 mills probably won't hold

When exemptions grow, the tax base shrinks, and local governments set their rates against that smaller base. In a July 17, 2026 analysis, the City of Boca Raton estimated it would collect about $8.14 million less per year at the $150,000 exemption and about $16.73 million less at $250,000. Staff said the impact would start in fiscal year 2027–28 and phase in over two fiscal years. The city's estimate came out before the election, so it is a projection of revenue at risk, not an adopted budget cut.

The Property Appraiser makes the same point about individual bills. Amendment 3 reduces taxable value. It does not set tax rates, and each owner's savings will depend partly on the rates local boards adopt. If the city, county or special districts raise their rates to make up revenue, each $100,000 of exemption becomes worth more. Owners with only the $50,000 exemption would then carry a larger share of the rate on the rest of their assessed value. Either way, the gap between the two tiers grows or shrinks with millage decisions that haven't been made yet.

The non-homestead assessment cap

Starting January 1, 2027, Amendment 3 lowers the annual cap on assessment increases for qualifying non-homestead property, including second homes and rentals, from 10% to 5% for non-school taxes.

The Property Appraiser notes that the cap limits assessed value, not tax rates, so it does not guarantee a bill will rise by 5% or less.

The cutoff may not survive in court

The residency tier is the most legally exposed part of the amendment, and the Property Appraiser says so. Its FAQ says the residency provisions are "subject to federal constitutional requirements" and may be affected by legislation, legal challenges, or court decisions.

That concern came up as soon as the Legislature passed the measure. CS/HJR 1F, titled "Save our Homes from Excessive Property Taxes," passed in the June 2026 special session, according to its Florida House bill record. An earlier proposal, HJR 203, passed the House during the regular session, but the Senate never took it up, as noted in Palm Beach County's 2026 Legislative Final Report. In a June 16 article, the Tampa Bay Times quoted Institute for Justice lawyer Robert McNamara: "At first blush, this looks pretty unconstitutional." The same article reported that the Florida Supreme Court had struck down a similar five-year waiting period for homestead benefits, writing:

"It is constitutionally prohibited for this state to impose different taxes on its citizens based solely on their length of permanent residence in the state."

The Times also reported Sen. Bryan Avila's defense of the measure: "As a state, we're given the discretion in order to lay out what tax exemptions to put in place within our tax code." Gov. Ron DeSantis described the waiting period as a response to concerns about population growth, telling the paper he didn't want voters worried that "the entire state of Illinois" would "empty out into Florida."

After the vote, the Tampa Bay Times reported on November 6 that Hillsborough County Property Appraiser Bob Henriquez said a court challenge could be coming, and Pinellas County Property Appraiser Mike Twitty agreed. The same report said implementing legislation still had to pass. Until a court rules or the Legislature acts, the December 31 line is part of the constitution but its future is uncertain.

The calendar from here

1. December 31, 2026: the residency cutoff for the larger exemption.
2. January 1, 2027: Amendment 3 takes effect. The $150,000 non-school exemption and the 5% non-homestead cap both begin.
3. August 2027: the first TRIM notices that reflect the larger exemption arrive.
4. November 2027: the first property tax bills that include it.
5. January 1, 2028: the non-school exemption rises to $250,000.
6. January 1, 2029: the maximum exemption begins adjusting for inflation.

Amendment 3 does not change 2026 property tax bills.

FAQ

Does Amendment 3 lower school taxes? No. The $25,000 homestead exemption from school taxes stays the same, and school levies still appear on the bill. In code 06154, school levies are 6.2870 of the 16.9090 mills.

What happens to Save Our Homes and portability? Both stay in place. The homestead assessment cap is still 3% or the change in CPI, whichever is lower, and eligible owners can still transfer their Save Our Homes benefit to a new homestead.

Does the larger exemption affect senior or veteran exemptions? Those exemptions remain. The Property Appraiser notes that the larger homestead exemption may reduce the extra savings some of them provide, depending on the property's taxable value.

This post is general information about a newly approved amendment, not legal, tax or financial advice. Please confirm your own residency and exemption situation with a qualified professional or the Palm Beach County Property Appraiser's office at 561-355-2866.

If a move to Boca Raton is on your calendar, Karen Diaz can walk through your timeline with you in English or Spanish and help you find the right professionals for the residency and tax questions. Schedule a complimentary consultation.