Oct 6, 2026
For generations of Canadian retirees with a penchant for balmy destinations, a Florida condo has been the reward for a lifetime of saving. However, the Sunshine State is in the midst of weighing its biggest property tax shake-up in years — and it’s designed to leave seasonal owners out.
On Nov. 3, Florida voters will take to the polls to decide on Amendment 3, a constitutional measure that would substantially increase property tax breaks for qualifying permanent residents. Florida Gov. Ron DeSantis has been clear about who will keep paying, telling Fox News in May, “we are focusing on homestead. Obviously they tax property that are non-homestead: Residential, Airbnb, Canadian snowbirds, commercial.”
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The stakes are big. Canadians own an estimated US$60 billion in Floridian property while paying more than US$600 million a year in property taxes, according to a 2023 statement from Canada’s former consul general in Miami, Sylvia Cesaratto.
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Here’s what the vote does and doesn’t do, as well as how to prepare before your 2027 tax bill arrives.
What would Amendment 3 change?
The amendment would raise Florida’s non-school homestead exemption, which is the portion of a home’s value shielded from tax, from about US$50,000 to US$150,000 in 2027 and then US$250,000 in 2028.
The catch: a homestead is a permanent Florida resident’s primary dwelling. Secondary homes, rentals and commercial property aren’t eligible for the bigger exemption, according to Florida TaxWatch, a nonpartisan non-profit taxpayer research institute. Meanwhile, school property taxes, which constitute roughly 40% of the average bill, aren’t affected.
For full-time residents, the savings are considerable. Florida TaxWatch estimates a homesteader paying the statewide average non-school rate would save US$1,035 in 2027 and US$2,085 in 2028.
The measure needs at least 60% voter approval. If passed, it would come into effect Jan. 1, 2027. Only those who establish permanent Florida residency by Dec. 31, 2026, qualify for the larger exemption in 2027; later arrivals phase in over five years.
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Will Canadian snowbirds pay more?
Not directly — but that nuance is important to clarify. The measure doesn’t create a tax aimed specifically at Canadians. Rather, owners whose Florida property isn’t their primary residence simply don’t get the main break.
There is a modest upside, as Amendment 3 would lower the annual cap on assessment increases for non-homestead properties, including vacation homes, from 10% to 5%. But that’s a ceiling on how fast your taxable value can climb, not a guaranteed tax cut.
Still, the gap between you and your full-time neighbours would widen. Furthermore, it’s not yet clear how counties and cities will manage lower homestead revenue over time, but DeSantis has made no secret of wanting non-residents to shoulder more of the state’s tax burden. Arguing against a proposed sales-tax cut in March 2025, he said, “I want Canadian tourists and Brazilian tourists subsidizing the state and making it so Florida residents pay less taxes.”
How does this fit into the rising cost of owning in Florida?
Property tax is one thing to keep an eye on. In 2025, snowbird Cesidia Cedrone told CBC News she paid nearly US$4,000, compared to US$1,500 15 years earlier. Higher insurance premiums and condo fees, along with a weaker Canadian dollar have also pushed many owners to sell their homes to thwart the financial bleed.
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If Amendment 3 were to pass, relief would flow to permanent residents while snowbirds’ bills would hinge on how local governments set future rates. That makes the keep-or-sell decision less about lifestyle and more about math.
What should you know before selling?
Selling U.S. property as a Canadian means dealing with two disparate tax systems.
On the U.S. side, the Foreign Investment in Real Property Tax Act (FIRPTA) generally requires the buyer to withhold 15% of the amount realized, which is usually the sale price, not your profit. For example, on a US$400,000 sale, the buyer would withhold US$60,000 and send it to the Internal Revenue Service (IRS) within 20 days of closing. You can also apply for a withholding certificate, ideally before closing, to reduce or even eliminate the amount withheld.
Lower rates apply if the buyer is an individual who plans to use the home as a residence and intends to live there at least half the time it’s in use during each of the first two years. In that case, if the price is over US$300,000 and up to US$1 million, the rate drops to 10%, or US$40,000 in this example. If the price is US$300,000 or less, no withholding is required.
In Canada, residents report worldwide capital gains to the Canada Revenue Agency (CRA) and can generally claim a foreign tax credit for any U.S. taxes paid. Because your gain is calculated in Canadian dollars, exchange-rate swings since you purchased the property can shrink or grow that sum.
There is a bit of relief for Canadians: personal-use property — such as a vacation home used mainly by you and your family — is excluded from Form T1135 foreign property reporting. If you rent the unit out, check whether that reporting will apply.
What to do now
- Pull your latest Florida tax bill and note your assessed value and millage rates
- Watch the Nov. 3 result — the 60% threshold is significant
- Build a 2027 budget that takes into account insurance and condo fees, as well as exchange rate
- Talk to a cross-border tax professional before you list, not after
- Gather any purchase, renovation and exchange-rate records for your CRA filing
- If you’re renting out the unit, check your T1135 obligations
While Amendment 3 won’t hike your bill overnight, it does change who Florida’s tax system is engineered to serve. Treat today’s carrying costs as the floor, not the ceiling — then decide whether your winter home still earns its place in your retirement plan or whether it’s time to sell.
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Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
