The One Florida Tax Quirk Every Buyer and Seller Should Plan Around
Florida property taxes work a little differently than most states — and once you understand the one rule behind it, it's completely manageable. Here's the plain-English version, for whichever side of the move you're on.
Short answer: why did my Florida property taxes go up after I bought?
While the seller owned the home, Florida's Save Our Homes cap limited how much its assessed value could rise each year: 3% or inflation, whichever is lower (2.7% for 2026). When the home sells, that cap and the seller's exemptions go away, and the county reassesses the property at market value the next January 1. Your bill reflects today's value, not the value the seller locked in years ago.
Heads up: Amendment 3 is on the November 3, 2026 ballot
Florida voters will decide on a constitutional amendment that would raise the homestead exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028, then adjust it for inflation. It would also lower the annual assessment cap on non-homestead property (second homes, rentals, commercial) from 10% to 5%. School taxes would still apply, and people who aren't Florida residents by December 31, 2026 would start with the current exemption and move to the larger one in their fifth year of homestead.
It needs 60% voter approval, and nothing changes unless it passes. Everything on this page reflects the rules in effect today. I'll update it after the election.
Your Tax Bill Will Likely Be Higher Than the Seller's — Here's Why, and How Much
This is a normal, well-understood part of buying in Florida — not a red flag, just something worth knowing before you fall in love with a listing's tax line. Florida's Save Our Homes provision limits how much a homesteaded owner's assessed value can rise each year, capped at 3% or the change in the Consumer Price Index, whichever is lower. A home's real market value might climb 8-10% in a hot year, but the current owner's taxable assessment doesn't.
Over enough years, that creates a gap between what a home is worth and what its owner is actually taxed on. If you're buying from a longtime owner, the tax bill you see on the listing or loan estimate reflects their capped number — not the number you'll eventually pay.
The size of that gap depends almost entirely on how long the seller has owned the home. A seller who bought two years ago has barely any gap at all — your bill will be close to theirs. A seller who's owned the home 15+ years may have a meaningfully larger one. There's no guessing required — I can pull the property record and tell you which situation you're in within a few minutes.
What actually happens: the year after you close, the county property appraiser resets the assessment to "just value" — their own independent market value estimate for the property, based on comparable sales and appraisal methodology, not simply a copy of your contract price. A recent sale is strong evidence they weigh heavily, but the appraiser's number can land above or below what you actually paid. I like to pull the county's public assessment data with you before you write an offer, so you have a realistic ballpark instead of a surprise — your official number always comes from the county property appraiser, not from me.
The Save Our Homes cap resets
The seller's capped assessed value doesn't transfer. After the sale, the county brings it up to its just value estimate on the next January 1.
The seller's exemptions end
Homestead, senior, veteran, widow(er) and disability exemptions belong to the owner, not the house. You'll file for your own homestead by March 1 of the following year.
Tax rates can rise too
The cap limits growth in assessed value, not the millage rate. Local governments can raise rates or add assessments, which affects every owner.
Buying a $450,000 home from an owner who's had it about 7 years
| Detail | Amount |
|---|---|
| Purchase price / new market value | $450,000 |
| Seller's assessed value (capped for ~7 years) | $370,000 |
| Seller's tax bill shown at closing (~2% effective rate) | ≈ $7,400/yr |
| Your assessed value the first January after closing (county's "just value" estimate) | ≈ $450,000 |
| Your real tax bill once reassessed | ≈ $9,000/yr |
Illustrative only — the county sets "just value" using its own market analysis, not your literal purchase price, so your actual number can land above or below this. Actual millage rates and your own homestead exemption (once you establish residency) will also adjust this. A longer-owned home would show a bigger gap; a recently-purchased one, a much smaller one. I'll pull the public county data with you before you write an offer so you have a realistic ballpark — your county property appraiser has the official figure.
That gap is exactly why a good pre-approval doesn't just repeat the seller's tax line — it factors in a realistic, publicly-sourced estimate so your monthly payment doesn't move on you later. I'm not a tax advisor, so I'll always point you to the county property appraiser or a tax professional for your official figure — but I can make sure you're working from a realistic ballpark instead of the seller's old bill when you decide.
When the higher bill actually shows up
The tax bill for the year you buy is based on the seller's January 1 status, and it's prorated between you and the seller at closing. The reassessment happens the following January 1, appears on your August TRIM notice, and is billed that November. If your escrow account was set up using the seller's lower bill, it comes up short at that point, and your annual escrow analysis will ask you to cover the shortage and raise your monthly payment at the same time. Building the reassessed number into your loan from the start avoids that surprise.
How Florida Property Taxes Are Calculated
Florida doesn't have a statewide property tax rate. Your county property appraiser sets the value, and your county, city, school board and special districts each set a tax rate, called millage. Your bill comes from four numbers that build on each other.
Just (market) value
The appraiser's estimate of what the home was worth on January 1, after statutory adjustments for costs of sale.
Assessed value
Just value, limited by Save Our Homes (homestead) or the 10% non-homestead cap on non-school taxes.
Taxable value
Assessed value minus exemptions, such as the homestead exemption of up to $51,411 for 2026.
× Millage rate
One mill is $1 of tax per $1,000 of taxable value. Rates add up from every taxing authority on your bill.
How the homestead exemption actually splits
The 2026 homestead exemption totals up to $51,411, but it applies in two layers. The first $25,000 reduces every tax on your bill, including school taxes. The second layer ($26,411 for 2026, adjusted for inflation each year) only applies to value above $50,000 and doesn't reduce school taxes. That's why the "$50,000 exemption" never saves quite as much as people expect.
Don't forget non-ad valorem assessments
Some charges aren't based on value at all: solid waste, stormwater, street lighting and, in many newer West Orange and Lake County communities, CDD (Community Development District) fees. They appear on the same tax bill and aren't reduced by homestead. In parts of Horizon West and Winter Garden, CDD fees can add a meaningful amount per year, so always check the full bill, not just the millage.
Estimate Your Florida Property Taxes After Purchase
Plug in the price you're considering to see a realistic first-full-year estimate, and compare it against what the seller pays today.
A ballpark, not an official figure. Assumes about 5.3 mills of the total are school taxes and uses your full purchase price as value, so it leans conservative. Uses 2026 exemption amounts. Doesn't include portability.
Portability: Taking Your Tax Cap With You
Since 2008, Florida law has allowed homeowners to transfer — or "port" — their accumulated Save Our Homes benefit from a sold homestead to a new Florida homestead, up to a maximum of $500,000.
It doesn't reduce your new home's market value. It reduces the assessed value your property taxes are calculated on — which is the number that actually drives your monthly escrow payment.
If you're moving up (new home costs more)
You transfer your full accumulated benefit, up to the $500,000 cap. Dollar for dollar.
If you're downsizing (new home costs less)
You transfer a proportional share — roughly the same percentage of your benefit as your new home's value is to your old home's value. The county property appraiser runs the final calculation, but the short version: you still keep most of what you built, even in a smaller home.
A Real-Numbers Example
Moving up from a $450,000 home to a $600,000 home
| Detail | Amount |
|---|---|
| Current home market value | $450,000 |
| Current home assessed value (after years under the cap) | $280,000 |
| Save Our Homes benefit (the gap) | $170,000 |
| New home market value | $600,000 |
| New home assessed value without portability | $600,000 |
| New home assessed value with portability ($600,000 − $170,000) | $430,000 |
| Estimated annual tax savings (at a ~2% effective rate) | ≈ $3,400/yr |
Illustrative only — actual millage rates vary by county and taxing district. I'll walk through the public portability data with you when we talk — your county property appraiser calculates the official transfer amount.
That's not a one-time savings. It lowers your assessed value going forward, which lowers your monthly escrow, which is real money back in your housing budget every single month for as long as you own the new home.
Selling too? See what you'll pay in doc stamps, closing costs and capital gains in my guide to Florida transfer tax and taxes when you sell.
How to Actually Do It
Confirm you had homestead on your prior FL home. Portability only applies if the home you're leaving carried a homestead exemption — and that exemption has to be relinquished (no one else can keep claiming it) before you can port any of the benefit.
Close on your new home and establish it as your homestead. You have up to three tax years from when you gave up your old homestead to establish the new one — but the sooner, the better, since you can't port a benefit you haven't re-established yet.
File Form DR-501T with your county property appraiser. This is the "Transfer of Homestead Assessment Difference" form. File it alongside your new homestead exemption application.
Meet the March 1 deadline. Miss it, and you may need to petition the Value Adjustment Board and show good cause — success isn't guaranteed. Filing on time is far simpler.
Let your lender factor it into your loan. A portability-adjusted tax estimate changes your real monthly payment and escrow — which is where I come in. I build a realistic estimate into your pre-approval so there are fewer surprises at closing, though your county property appraiser's office confirms the actual portability amount.
Florida Property Tax Timeline: Key Dates to Know
Status and value date. Ownership, residency and the home's condition on this day determine that year's assessment and exemptions.
Deadline to file for homestead, portability (Form DR-501T) and most other exemptions with your county property appraiser.
TRIM (Truth in Millage) notices mail out showing your proposed values, exemptions and tax rates. This is a preview, not a bill.
Deadline to petition the Value Adjustment Board if you believe your assessment or exemption decision is wrong.
Tax bills are issued. Paying in November earns a 4% discount, then 3% in December, 2% in January and 1% in February.
Last day to pay the full amount. Unpaid taxes become delinquent April 1.
Other Ways to Lower Your Florida Property Taxes
File for homestead right away
If the home is your permanent residence on January 1, apply by March 1. It's the biggest single savings for most owners, and it starts your own Save Our Homes cap the following year. Full homestead exemption guide →
Check for additional exemptions
Florida offers extra exemptions for qualifying veterans with service-connected disabilities, widows and widowers, people with disabilities, first responders, and, in counties and cities that adopt it, low-income seniors.
Review your TRIM notice every August
Compare the appraiser's market value to recent sales. If it looks off, call the appraiser's office first. Many issues get fixed informally before you ever need a Value Adjustment Board petition.
Check the Official Numbers: A Few Central Florida Counties
The honest answer to "what will my number actually be" is: the county property appraiser is the only office that can tell you for certain — and several of them offer free online tools that get you far closer than any rule of thumb. Florida has 67 counties, each with its own appraiser's office; here are official links for a few in the Central Florida area to get you started. If yours isn't listed, a quick search for "[your county] property appraiser" will get you to the right place.
Worth knowing: even these official calculators come with real limits. Lake County's own estimator, for example, states outright that it doesn't factor in portability and that their office won't give verbal or written portability estimates, because too many variables affect the outcome. That's not a gap in this page — it's the honest state of things. These tools are the best starting point, but your final figure comes only after you file, when the property appraiser calculates it directly.
Common Questions
Why are my property taxes higher than the seller's?
The seller's assessed value was likely held down by the Save Our Homes cap and reduced by their homestead exemption. When the home sold, both ended, and the county reassessed the property at its just value the next January 1. Your bill reflects today's value, not the value the seller locked in years ago.
How are Florida property taxes calculated?
The county property appraiser determines just (market) value as of January 1, applies any assessment cap to get assessed value, then subtracts exemptions to get taxable value. That taxable value is multiplied by the combined millage rate of every local taxing authority (one mill equals $1 per $1,000 of value), and non-ad valorem assessments like solid waste or CDD fees are added on top.
Why is the tax figure on my loan estimate different from what I'll actually pay?
Loan estimates often use the most recent available tax bill — usually the seller's current, capped bill. If the seller has owned the home a long time, that number can be well below what your bill will be once the county reassesses the property. It's not an error; it's just based on the data available at the time, so it's worth asking your lender to also show you a reassessed estimate.
How much will my property taxes really be after I buy?
As a rule of thumb, expect the county's "just value" estimate to move toward your purchase price the January after closing — sale price is strong evidence the appraiser weighs, but they set the number independently using their own comps and methodology, so it can land above or below what you paid. From there it's reduced by your own homestead exemption once you establish residency. I can pull the public property record and walk through a realistic range with you before you make an offer, so your budget reflects reality rather than the seller's old bill — for your official figure, the county property appraiser's office always has the final word.
When will I see the higher tax bill after buying?
Usually in November of the year after you close. The bill for the year you buy is based on the seller's January 1 status and is prorated at closing. The reassessment happens the following January 1, shows up on your August TRIM notice, and is billed that November.
How much is the Florida homestead exemption in 2026?
Up to $51,411 for 2026. The first $25,000 applies to all taxes including school taxes. An additional $26,411, adjusted annually for inflation, applies to assessed value above $50,000 and only reduces non-school taxes.
How much can Florida property taxes go up each year?
For homesteaded property, assessed value can rise by no more than 3% or the change in CPI, whichever is lower. The cap is 2.7% for 2026. Non-homestead property is capped at 10% per year for non-school taxes. These caps limit value growth, not tax rates, so your bill can still rise if millage increases or new assessments are added.
I'm a first-time buyer with no home to port from — is there anything I can do?
Portability only applies if you're transferring savings from a prior Florida homestead, so it won't help a first-time buyer directly. What will help is filing for your own homestead exemption as soon as you close and qualify — it reduces your taxable value and starts your own Save Our Homes cap going forward, protecting you from these same jumps in future years.
Does portability apply if I'm moving to a different county?
Yes. Portability works statewide across all 67 Florida counties — you can move from one end of the state to the other and still transfer your benefit.
Can I use portability more than once?
Yes, there's no lifetime limit. Each time you sell one Florida homestead and establish a new one, you can port again, as long as you meet the timing and filing requirements each time.
What if my new home is worth less than my old one?
You still benefit — the portable amount is prorated based on your new home's value relative to your old one, rather than transferring the full dollar amount.
Does this affect my mortgage approval or payment?
It affects your monthly payment, not your approval directly — but it matters a lot for how your payment is calculated. Property taxes are usually escrowed into your monthly mortgage payment, so a lower assessed value means a lower monthly payment. I factor your realistic, portability-adjusted tax estimate into your pre-approval so the number you see up front is the number you'll actually pay.
Is Florida getting rid of property taxes in 2026?
Not as of today. Amendment 3 on the November 3, 2026 ballot would raise the homestead exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028, and lower the non-homestead assessment cap from 10% to 5%. It needs 60% voter approval, school taxes would still apply, and nothing takes effect before January 1, 2027. If you're timing a move around this, it's worth a quick conversation so I can walk you through where things stand.
Florida Mortgage Options From a Local Broker
I'm Brandt Myers, a mortgage broker based in Winter Garden. Instead of one bank's products, I compare loan options from multiple wholesale lenders for your purchase, refinance or investment, and I always show you the full payment picture, realistic taxes included.
Let's Walk Through What to Expect
Whether you're buying your first Florida home or porting years of savings into your next one, every county and every homestead history is different. I'll pull the public data with you and build a realistic ballpark into your pre-approval so you're not budgeting off the seller's old bill.
This page is for general educational purposes and isn't tax or legal advice, and I'm not a tax advisor. Any figures discussed are estimates based on publicly available data, not official calculations. Assessed values, portability amounts, and final tax bills are determined solely by your county property appraiser — always confirm your specific numbers with their office or a qualified tax professional before making financial decisions. Exemption amounts and caps reflect 2026 figures published by the Florida Department of Revenue. Brandt Myers, NMLS #2030154 | Mountain Goat Mortgage LLC, Company NMLS #2547079 | Licensed in FL & PA. Equal Housing Opportunity. All loans subject to credit approval. This is not a commitment to lend.