Understanding Florida Property Taxes: A Complete Guide
Melanie Lowery
December 20, 2025 · 7 min read
Understanding Florida Property Taxes: A Complete Guide
One of the biggest advantages of living in Florida is no state income tax. But that does not mean you are tax-free. Property taxes are a significant expense for Florida homeowners, and understanding how they work is essential for making smart buying decisions.
How Florida Property Taxes Work
Florida property taxes are based on two factors: the assessed value of your property and the millage rate set by your county, city, school district, and special districts.
The formula is simple:
Annual Tax = (Assessed Value - Exemptions) x Millage Rate / 1,000
For example, a home assessed at $400,000 with a $50,000 homestead exemption and a total millage rate of 18 mills would pay:
($400,000 - $50,000) x 18 / 1,000 = $6,300/year
What is Millage Rate?
A "mill" equals $1 of tax for every $1,000 of assessed value. Millage rates vary by location and fund different services:
- County government operations
- School district
- City/municipality
- Water management district
- Special districts (fire, library, hospital)
Total millage rates in Florida typically range from 15 to 22 mills, depending on the county and municipality.
Millage Rates in Our Service Areas
Here is how the total millage rates compare in the areas we serve (approximate, check current rates):
| Area | Approximate Total Millage |
|---|---|
| Kissimmee (Osceola County) | 18-19 mills |
| Palm Beach Gardens (Palm Beach County) | 17-20 mills |
| Lakeland (Polk County) | 19-21 mills |
| Fort Lauderdale (Broward County) | 18-20 mills |
The Homestead Exemption: Your Biggest Tax Break
If Florida is your primary residence, you qualify for the Homestead Exemption, which reduces your taxable value by up to $50,000. This exemption has two parts:
- First $25,000 -- applies to all property taxes
- Second $25,000 -- applies to non-school taxes only (on assessed value between $50,000 and $75,000)
For a home assessed at $300,000, the homestead exemption saves approximately $800-$1,000 per year depending on your millage rate.
How to Apply
You must apply for homestead exemption by March 1 of the year following your purchase. Apply through your county's Property Appraiser office. You will need:
- Proof of Florida residency (FL driver's license)
- Social Security number
- Property address
- Recorded deed or tax bill
Important: Do not forget to apply. It is not automatic, and missing the deadline means waiting another year.
Save Our Homes (SOH) Cap
Once you have a homestead exemption, the Save Our Homes amendment limits how much your assessed value can increase each year -- to a maximum of 3% or the Consumer Price Index, whichever is lower.
This is incredibly valuable in a rising market. Your property's market value might increase 10% in a year, but your assessed value (for tax purposes) can only go up 3%. Over time, this creates significant tax savings.
Portability
If you sell your homesteaded home and buy another in Florida, you can transfer your SOH savings to your new property. This is called "portability" and can save you thousands of dollars per year.
For example, if your old home had a market value of $400,000 but was assessed at $300,000 (a $100,000 SOH benefit), you can transfer up to $100,000 of that benefit to your new home.
Important: You must apply for portability when you apply for your new homestead exemption. The deadline is the same -- March 1.
Additional Exemptions You May Qualify For
- Senior Exemption: Additional $50,000 for residents 65+ with household income below the annual limit
- Veteran Disability Exemption: Partial or full exemption for veterans with service-connected disabilities
- Widow/Widower Exemption: $5,000 reduction in assessed value
- Disability Exemption: $5,000 reduction for legally blind or disabled residents
How Taxes Affect Your Monthly Mortgage Payment
When you finance a home, your lender typically collects property taxes as part of your monthly mortgage payment and holds them in an escrow account. This means property taxes directly impact your monthly housing cost.
For a $400,000 home with homestead exemption:
- Annual tax (est.): $5,500-$6,500
- Monthly escrow for taxes: $458-$542
This is on top of your principal, interest, insurance, and any HOA dues. Always factor in the full cost when determining your budget.
Tips for Managing Property Taxes
- Always apply for homestead exemption -- it is free money
- Review your assessment annually -- if you believe your assessed value is too high, you can appeal through the Value Adjustment Board
- Pay early for a discount -- Florida offers a 4% discount if you pay property taxes in November, decreasing by 1% each month through February
- Factor taxes into your home search -- the same priced home in different counties can have very different tax bills
The Bottom Line
Florida property taxes are a significant annual expense, but the homestead exemption, SOH cap, and portability provisions provide meaningful savings for primary residents. Understanding these tools helps you make smarter buying decisions and keep more money in your pocket.
If you have questions about property taxes in a specific area or want help estimating the full cost of homeownership, I am happy to walk through the numbers with you.