Florida's Property Tax Amendment: What a Lower Non-Homestead Cap Means for Your Rental Portfolio (10% to 5% on the 2026 Ballot)

Owner Guide · Property Taxes · Palm Beach County, FL

By Jean Taveras, Broker-Owner, Atlis Property Management · Updated October 2026

Every Palm Beach County rental is taxed on an assessed value that a constitutional cap holds back each year. A proposed amendment would tighten that cap. Whether it matters for your portfolio depends on whether voters approve it, how fast your properties' market values move relative to their assessed values, and what happens to tax rates the cap does not touch.

This guide quotes the official sources and does not predict the vote. For the basics of how a rental is taxed in Florida, including the reset after a sale and the loss of homestead when you rent your home, start with our guide to property taxes for Jupiter landlords.

What the Official Record Shows Today

The proposal began as CS/HJR 1F, a joint resolution the Legislature filed with the Secretary of State on June 16, 2026. The Florida Division of Elections initiatives database lists it under the title "Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments." As of October 7, 2026, that page shows:

• Status: Active.
• Made ballot: June 16, 2026.
• Ballot number: 3, for election year 2026.
• Summary on the cap: "This amendment reduces the annual cap on assessment increases for non-homestead properties from 10% to 5%."
• Effective date: "This amendment takes effect January 1, 2027."

Article XI, Section 5(e) of the Florida Constitution provides that a proposed amendment takes effect if it "is approved by vote of at least sixty percent of the electors voting on the measure." Until then, the current cap remains the law; this article does not say the amendment has passed or will pass.

How the Cap Works Now for Rental Homes

Florida's Constitution has separate assessment caps for different kinds of property. Most rental homes fall under Article VII, Section 4(g), which covers "residential real property, as defined by general law, which contains nine units or fewer" and does not have a homestead. Under that subsection, as currently written, annual changes in assessment "shall not exceed ten percent (10%) of the assessment for the prior year," and "No assessment shall exceed just value." The subsection applies "for all levies other than school district levies." Larger buildings and other non-homestead property fall under a separate subsection, 4(h), which the amendment would change in the same way.

The Palm Beach County Property Appraiser explains the practical side: the 10% cap is "only for 'non-homestead' properties," which "could include second homes, rental properties, vacation homes, vacant land or commercial property," and it applies "to all taxing authority millage rates except the school board millage." The office also notes that there is no need to apply, because the cap is applied automatically, and that a purchased property "must be reassessed at full market value in the year following the sale."

Ownership changes that do not appear on a deed count too. The appraiser's page says "If there is a change of ownership or control not recorded on a deed, it will trigger a reassessment," and the constitution's text reaches "any change of ownership of a legal entity that owns the property." Owners who hold rentals in LLCs should keep that in mind; our guide to Florida's protected series LLC law covers entity structure.

What the Amendment Would Change

The enrolled text of CS/HJR 1F rewrites the 10% limit in both subsections (g) and (h) as a schedule: "Before January 1, 2027, ten percent (10%)" and "Beginning January 1, 2027, five percent (5%)." The rest of subsection (g) stays in place, including the exclusion of school district levies, the rule that no assessment may exceed just value, and the reset to just value after a change of ownership or control.

The amendment does two other things that rental owners should understand, even though they mostly affect others. First, the official summary says it "increases the homestead exemption, for all non-school taxes, to $150,000 in 2027 and $250,000 in 2028." That exemption belongs to homesteads, and under Florida Statute §196.061, renting all or substantially all of a former homestead constitutes abandonment of the homestead until the owner physically occupies it again. Second, the summary says it requires counties and municipalities to use property taxes "solely for public safety, education and schools, infrastructure, natural resources, bond debt service, retirement benefits for employees, and operations and administration," with other expenditures allowed as the summary describes.

If you are deciding whether to keep your former home as a rental, our guide to turning a primary residence into a long-term rental walks through the homestead question.

A Hypothetical: How a 10% Cap and a 5% Cap Compare

The table uses a hypothetical rental with an assessed value of $400,000 and assumes its just value rises faster than either cap, so the cap is the limit in every year. These are assessed values, not tax bills, and the school portion of the bill is outside the cap under both versions.

In this example, the gap in maximum assessed value after three years is $69,350 ($532,400 − $463,050). If just value rises more slowly than 5% a year, neither cap binds, and a sale resets the assessment to just value under either version.

Where Palm Beach County Values Have Been Moving

Whether a tighter cap would matter for a given rental depends on how its market value moves. Countywide, the Property Appraiser's 2026 preliminary tax roll announcement states that "Countywide taxable property values increased 7.35% from 2025 to 2026, based on market conditions as of January 1, 2026." City by city, PBP Real Estate reports year-to-date median sale prices for January 1 through September 30 of each year. The table shows those medians, with the percentage change calculated from them.

A median sale price describes the homes that happened to sell in each period, not the change in value of any particular home, and the Property Appraiser values property as of January 1, not on sale dates. Use the table as context only. The figure that matters for your rental is on your own TRIM notice. For more on how house and condo markets have separated in the county, see our analysis of Palm Beach County's two housing markets.

What the Amendment Would Not Change

A lower cap is easy to overread. The Property Appraiser's own explanation of the current cap is the best reminder: it "does not mean that your taxes may never increase more than 10%. Many other factors affect an individual tax bill, including tax rates or millages, and non-ad valorem assessments, neither of which is determined by the Property Appraiser's Office." Under the amendment as written, several things stay the same:

• School taxes. The cap still applies to all levies other than school district levies.
• Tax rates. Millage is set by each taxing authority, not by the cap.
• Non-ad valorem assessments. Charges such as solid waste or special district fees are separate from the assessed value.
• The reset after a sale. A change of ownership or control still brings the assessment to just value at the next assessment date.
• Insurance and association dues. The amendment does not address them. Our Palm Beach Gardens insurance report covers that side.

What Rental Owners Can Do Before and After the Vote

1. Read your TRIM notice. The Property Appraiser's TRIM page explains that the notice "shows the change in market, assessed and taxable values of your property." If the assessed value is well below the market value, the current cap is already limiting your assessment. If they are close, a lower cap would matter less for that property.
2. Know your dispute window. The same page says that if you disagree with your valuation, you can contact the office and, if the matter is not resolved, file a petition with the Value Adjustment Board.
3. Do not budget on an undecided change. Underwrite next year with current law, and treat a lower cap as upside only if it is approved.
4. Think before changing ownership. Transfers, new partners, or a change in who controls an entity can reset the assessment. Ask your attorney or CPA first.
5. Model it with a CPA. The effect depends on each property's assessment history, its market value, and local millage. Our guide to tax deductions for Palm Beach Gardens landlords covers what your CPA will ask for.

For the cash-flow side, our rental ROI and cash flow guide shows how property tax fits into the full annual picture.

Common Mistakes Owners Make With the Non-Homestead Cap

• Treating a ballot measure as law. Until voters approve it, the 10% cap is current law.
• Confusing assessed value with the tax bill. Millage, non-ad valorem charges, and the school portion all sit outside the cap.
• Assuming the homestead increase applies to a rental. It applies to homesteads, and renting a former homestead abandons it under §196.061.
• Forgetting the reset. A sale or a change of control brings the assessment back to just value.
• Ignoring the TRIM notice. It is the one document that shows whether the cap is limiting your property's assessment.
• Using market medians as your value. Your property's assessment history is what counts.

How Atlis Keeps Owners' Numbers Straight

Atlis provides monthly owner statements and year-end documents for your tax preparer, so property tax, insurance, and every other expense is in one place when your CPA needs it. Our management fee is 5 to 9 percent of collected rent with a $200 monthly minimum, full service only; homes and condos are 7 to 9 percent, and leasing and renewal fees are listed separately on our pricing page. Tax questions belong with your CPA; we keep the records that make that conversation quick. See our owner accounting page for what statements include.

Frequently Asked Questions

Whatever happens on the ballot, a rental's numbers should be easy to read. If you want a second look at yours, we are glad to help.