Complete Florida Property Tax Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Florida property tax funds local services and is based on your home's assessed value. With no state income tax, property taxes and the homestead exemption are central to the cost of owning in Florida.
This guide explains how taxes are calculated, the homestead exemption, the Save Our Homes cap, and what happens to your bill when you buy. Mortgage Capital, NMLS# 1859012, helps Florida buyers budget accurately.
How property tax is calculated
Your tax is the assessed value, minus exemptions, multiplied by the local millage rate. Counties, school districts, and municipalities each set rates that combine into your total bill.
Because rates vary by location, two similar homes in different counties can carry different tax bills.
The homestead exemption
Florida's homestead exemption reduces the taxable value of your primary residence by up to a set amount, lowering your bill. You must own and occupy the home as your main residence and apply with the county.
The exemption applies only to primary residences, not second homes or rentals, which is why those carry higher tax bills.
The Save Our Homes cap
Save Our Homes limits how much the assessed value of a homesteaded property can rise each year, capping annual increases. Over time this can hold your taxable value well below market value.
This benefit is one reason long-term Florida owners pay far less tax than a new buyer of the same home.
What happens when you buy
When a home sells, the prior owner's exemptions and Save Our Homes cap reset. The home is reassessed at market value, so your tax bill is usually higher than the seller's last bill.
Budget for the reassessed amount, not the figure on the listing, to avoid an escrow surprise after the first year.
Taxes, escrow, and portability
Property taxes are escrowed into your monthly mortgage payment, so the lender pays the county on your behalf. After the reassessment, your escrow may adjust, changing your payment.
If you already own a Florida home, portability lets you transfer some of your Save Our Homes benefit to a new primary residence.
Complete Florida Property Tax Guide: step by step
Frequently asked questions
How is Florida property tax calculated?
Assessed value minus exemptions, multiplied by the local millage rate set by the county, schools, and city.
What is the homestead exemption?
A reduction in the taxable value of your primary Florida residence, lowering your bill. You apply with the county after moving in.
What is the Save Our Homes cap?
A limit on how much a homesteaded property's assessed value can rise each year, holding long-term owners' taxes down.
Will my property taxes go up after I buy?
Usually. The seller's exemptions and cap reset on sale, so the home is reassessed at market value for your bill.
Does Florida have a state income tax?
No. Florida has no state income tax, which makes property tax a primary source of local funding.
What is portability?
A benefit that lets existing Florida owners transfer part of their Save Our Homes savings to a new primary residence.
Do rentals get the homestead exemption?
No. The exemption and cap apply only to primary residences, so second homes and rentals pay more.
Are property taxes included in my mortgage payment?
Yes. They are escrowed into your monthly payment, and the lender pays the county on your behalf.