Second Homes and Rentals: Florida's 10% Non-Homestead Cap

Updated October 3, 2026

Second homes, rental houses, condos you don't live in and commercial property get no homestead exemption. Their main protection is a 10% annual cap on assessed value, and Amendment 3 would cut it to 5%.

How the 10% cap works

For non-homestead property, the assessed value used for non-school taxes can rise by no more than 10% a year, regardless of how fast the market climbs. School taxes are still charged on full market value. The cap has applied since 2009 and is automatic; you don't need to apply.

The cap resets to market value after a change of ownership or control (including transfers of a controlling interest in an LLC that owns the property) and after a qualifying improvement.

What Amendment 3 would change

Amendment 3 lowers the cap to 5%. It does not cut current bills. It slows growth: in a market rising 8% a year, assessed value would grow 5% instead of 8%, and the difference compounds. Switch the calculator to "second home / rental" to project five years.

Snowbirds and residency

If you split the year between Florida and another state, only one home can be your permanent residence. Claiming homestead in Florida means giving up residency-based tax benefits elsewhere, and vice versa. If you rent out your Florida homestead for more than 30 days in each of two consecutive years, it is treated as abandoned.

Tangible personal property for rentals

Furnished rentals and businesses may owe tax on furniture, appliances and equipment. File form DR-405 with the property appraiser by April 1; the first $25,000 of tangible personal property value is exempt.

Frequently asked questions