Florida voters approved an overhaul of the state’s property tax system, passing Amendment 3 with 62% of the vote. While pitched primarily as relief for everyday residents squeezed by rising living costs, its true financial windfall for the ultra-wealthy elite buying up South Florida’s luxury properties lies in a modified assessment rule. For the tech titans and hedge-fund founders who have bought houses for hundreds of millions of dollars, this is a welcome decision though the exemption offers little more than loose change.
What is the new property tax rule
Under Amendment 3, the state’s homestead exemption on non-school property taxes will triple from the current $50,000 to $150,000 in 2027, before jumping to $250,000 in 2028. By shielding more of a primary residence’s assessed value from local taxation, the measure will lower annual tax bills for typical homeowners. New residents will also be eligible for the break, though on a phased-in timeline. As the homestead tax exemption applies as a flat dollar deduction, its benefits drop to near zero against multi-million-dollar mega-mansions.Raul Gastesi, a real estate attorney and co-founder of Miami law firm Gastesi Lopez Mestre & Cobiella, calculated that at the statewide average non-school tax rate, the fully phased-in exemption will save a homestead owner roughly $2,085 per year:
- Typical Family Home ($350,000 assessed value): Local services property taxes fall dramatically from around $3,135 to roughly $1,050.
- Luxury Waterfront Estate ($50 million assessed value): The annual property tax bill edges down from about $524,000 to $522,000.
Benefit for billionaires: Halving the 10% assessment cap
Real estate experts told Fortune that the most consequential provision for ultra-wealthy investors is a less discussed element of Amendment 3: a tighter cap on how fast taxes can climb on secondary properties, rental homes, and commercial holdings. Previously, Florida capped annual taxable value increases on non-homestead properties at 10%. Amendment 3 halves that ceiling to 5%.In red-hot luxury property markets like South Florida, home values often appreciate at rapid speeds. As billionaires frequently own multiple estates, investment residences and commercial tracts, capping assessed valuation hikes at 5% significantly slows down the tax climb on their rapidly appreciating secondary assets.
High-profile tech tycoons who have bought houses in Florida
The policy change coincides with a concentration of wealth moving into South Florida’s exclusive luxury corridors.
- Jeff Bezos (Indian Creek & Golden Beach): The Amazon founder relocated to Miami in 2023, assembling a $237 million compound on Indian Creek, the fortified island community dubbed “Billionaire Bunker.” Bezos is also reportedly purchasing a $69.5 million oceanfront estate in neighboring Golden Beach.
- Ken Griffin (Miami): The Citadel CEO relocated his multi-billion-dollar investment and market-making firm from Chicago to Miami, investing heavily in local real estate.
- Larry Page (Coconut Grove): The Google co-founder quietly acquired two luxury waterfront estates in Coconut Grove for a combined total of roughly $173.4 million.
- Larry Ellison (North Palm Beach): The Oracle co-founder purchased a 22-acre ocean-to-Intracoastal estate for $173 million in 2022. He is relisting his 8.4-acre oceanfront estate in Seminole Landing for $165 million, more than double the $80 million he spent in 2021, according to The Wall Street Journal.
- Mark Zuckerberg (Indian Creek Island): Zuckerberg and his wife, Priscilla Chan, purchased a $170 million waterfront estate in Florida.