Property taxes are a significant part of the cost of owning a home in South Florida, and understanding how they work helps you budget accurately and avoid surprises. Florida’s system includes valuable protections for primary residents that every buyer should know.
This guide breaks down the essentials in plain language.
How Taxes Are Calculated
Property taxes are based on your home’s assessed value multiplied by the local millage rate, which is set by county, city, and other taxing authorities. Rates vary by location, so two similar homes in different cities can carry different tax bills.
Importantly, the taxes a previous owner paid may not reflect what you’ll pay, since the assessed value can reset after a sale.
The Homestead Exemption
Florida’s homestead exemption reduces the taxable value of your primary residence by up to $50,000, lowering your annual bill. You must apply after purchasing and occupying the home as your primary residence.
This is one of the most valuable tax benefits available to Florida homeowners and shouldn’t be overlooked.
Save Our Homes Cap
The Save Our Homes provision caps annual increases in the assessed value of a homesteaded property, protecting long-term owners from steep tax jumps as values rise. When you buy, however, the assessment typically resets to market value.
Budgeting based on the reassessed value — not the seller’s old taxes — prevents unwelcome surprises.
Frequently Asked Questions
Why are my taxes higher than the previous owner’s?
After a sale, the assessed value often resets to market value, so your bill may be higher than the prior owner’s, especially if they held the home a long time under the Save Our Homes cap.
How much does the homestead exemption save?
It reduces your primary residence’s taxable value by up to $50,000 and, via Save Our Homes, caps future assessment increases — meaningful savings over time.
When do I apply for the homestead exemption?
After closing and establishing the home as your primary residence, you apply with the county property appraiser, typically by the state’s filing deadline.