Buying a home in Florida? Then Florida property tax is something you can’t ignore. I get it. You just closed on your dream house. You’re settling in, figuring out HOA fees, utilities, and renovations. The last thing you want is a surprise tax bill. But you will get that bill. And if you don’t handle it right, it could cost you thousands extra. Florida has unique property tax laws—some that work in your favor, others that might trip you up.
How Does Florida Property Tax Work?
Florida property tax is based on your home’s assessed value. The county property. Essential property tax tips for new Floridian homeowners appraiser sets this value, and tax rates apply from local governments.
Here’s what makes Florida special:
- No state income tax: Unlike most states, Florida relies heavily on property taxes to fund services.
- Homestead Exemption: If this is your primary residence, you can knock off up to $50,000 from your home’s taxable value.
- Save Our Homes (SOH) Cap: If you qualify for Homestead Exemption, your assessed value can’t jump more than 3% per year, even if your market value skyrockets.
Your First Property Tax Bill Will Be Higher (Here’s Why)
Here’s something that shocks most new buyers—your first tax bill is going to be way higher than what the seller paid.
Why?
Because when you buy a home, the county resets the assessed value based on the purchase price. The seller probably had a lower taxable value due to SOH caps, but the day you close, the protection resets. Your home’s taxable value jumps to your purchase price, which can mean a much bigger tax bill. Expect the hit. Prepare for it.
Homestead Exemption: How to Save Big on Property Taxes
If this is your primary residence, file for Homestead Exemption. It’s the easiest way to lower Florida property tax.
Who qualifies?
- You must own the property.
- You must live in it as your primary residence.
- You must file before March 1 of the year after you buy the home.
How much can you save?
Up to $50,000 off your taxable value. This could bring down your tax bill by $500–$1,000 per year, depending on your location.
How Property Taxes Are Calculated in Florida
Let’s break it down.
- Your property appraiser sets your home’s assessed value.
- They subtract eligible exemptions (like Homestead Exemption), giving you your taxable value.
- Your county, city, and other local governments apply their tax rate, also called the millage rate.
Example:
- Home purchase price: $400,000
- Assessed value: $390,000
- Homestead Exemption: $50,000
- Taxable value: $340,000
- Millage rate: 1.5%
- Annual property tax bill: $5,100
Every county has different millage rates, so check with your local tax collector.
FAQs
How often do you pay property tax in Florida?
Property taxes are paid annually, usually from November to March. Paying early gets you a discount.
What happens if you don’t pay?
The county can place a tax lien on your house. Worst case? They sell that lien, and if you still don’t pay, the buyer can legally take your home.
Can my taxes go down?
Yes. If market values drop, your assessed value may follow. Also, filing for exemptions can reduce your taxable amount.
Are Florida property taxes higher than other states?
Florida’s property tax rates are average compared to other states, but with no state income tax, it’s a fair trade.
