Florida Property Taxes: Homestead Exemption, Save Our Homes & How to Appeal

Florida's tax system has some of the most buyer-favorable rules in the country — but only if you know how to use them. Most new owners miss the March 1 deadline and leave thousands on the table.

How Florida Property Taxes Work

Florida property taxes are calculated on assessed value — not market value. Your county Property Appraiser sets both figures. The tax bill you receive in November equals your taxable value (assessed value minus exemptions) multiplied by the combined millage rate of all taxing authorities for your property (county, municipality, school board, special districts, water management district, etc.).

One mill = $1 per $1,000 of taxable value. Total millage varies significantly by location — a home in an unincorporated county area will have fewer taxing layers than the same home inside a city with special assessment districts.

The Homestead Exemption — Up to $50,000 Off

Florida's homestead exemption (FL Constitution Article VII, §6) reduces your assessed value for tax purposes. To qualify:

• Property must be your primary residence (not a rental, second home, or investment)
• You must have been a FL permanent resident living at the property on January 1 of the tax year
• Apply to your county Property Appraiser by March 1
• File once — it renews automatically each year unless your residency status changes

The exemption works in two tiers:

Save Our Homes — The 3% Annual Cap

Once you've had your homestead exemption for one full year, Florida's Save Our Homes (SOH) cap (FL Constitution Article VII, §4(d)) limits how much your assessed value can increase each year:

• Maximum annual increase: 3% or CPI change, whichever is lower
• In low-inflation years (CPI < 3%), your cap = CPI
• No matter how much your home's market value rises, your assessed value can only grow by the capped amount

SOH Portability — Transfer Your Benefit

If you're an existing FL homestead owner moving to a new primary residence in FL, you can transfer your accumulated SOH differential to the new property — up to $500,000. This is called Portability.

• File Form DR-501T with your new county Property Appraiser at the same time you apply for homestead exemption
• Must file within 3 years of selling/abandoning your previous FL homestead
• Transfer applies to your new home's assessed value — reduces it below its market value from year one
• If your new home is worth less than your old home, the benefit is prorated

FL Property Tax Rates by County — 2026 Estimates

Total millage varies by municipality within each county. These are typical unincorporated county ranges for comparison — actual rates depend on your exact address and taxing districts.

Rates as of 2025 tax roll; verify current millage at your county Property Appraiser website. Municipal rates add 1–4+ mills for incorporated city properties. Special taxing districts (CDD, fire, water) add additional millage.

Community Development Districts (CDD) — The Hidden Extra Tax

Many newer FL communities — especially in planned developments in Osceola, St. Johns, Pasco, and Hillsborough counties — sit within a Community Development District. CDDs issue bonds to fund infrastructure (roads, utilities, amenities) and charge an annual assessment that appears as a line item on your property tax bill. Key facts:

• CDD debt assessments are NOT reduced by homestead exemption
• Can range from $500 to $3,000+/year depending on the district's outstanding bond balance
• Decreases over time as the bond pays down — check how many years remain
• Required to be disclosed in FL real estate contracts (Paragraph 18B)
• Search the property's county tax bill or the FL Dept. of Community Affairs list to verify CDD status

How to Read Your TRIM Notice

Each August, Florida counties mail a Truth in Millage (TRIM) Notice — not a bill, but your proposed assessment for the coming year. It shows:

• Market value, assessed value, and taxable value for your property
• Prior year vs. proposed millage rates for each taxing authority
• Your estimated tax bill under proposed rates (and under rollback rate)
• The deadline to file a VAB petition if you want to challenge the value

If you just bought and this is your first TRIM: your assessed value may still reflect the seller's prior-year assessment if you closed after January 1. Your first full assessment at or near your purchase price will appear on next year's TRIM.

How to Appeal Your Property Tax Assessment

FL property tax appeals go through the county Value Adjustment Board (VAB). The process:

1. Review your TRIM Notice when it arrives in August — check market value vs. your purchase price and comparable sales
2. File Form DR-486 (VAB petition) by the deadline on your TRIM Notice — typically 25 days from mailing date. Fee is usually $15
3. Gather evidence: recent comparable sales (within 6–12 months, similar size/age/condition), your purchase contract, independent appraisal, or photos of condition deficiencies
4. Attend your VAB hearing — a Special Magistrate reviews residential cases. Present your comps; the Property Appraiser must defend their value
5. Standard of proof: you must show the appraised value exceeds the market value — not just that taxes are high or that you disagree

Property Tax Checklist for FL Buyers

1. Pull the seller's county Property Appraiser page before making an offer — check market value, assessed value, and current tax bill
2. Calculate your own estimated bill: (purchase price − $50k homestead) × county millage rate
3. Check for CDD assessments on the tax bill
4. If closing before December 31, verify property taxes will be prorated correctly at closing
5. Apply for homestead exemption by March 1 of the year following your purchase
6. If you're selling a FL homestead to buy another, file Form DR-501T for portability
7. Review your TRIM Notice every August — the SOH cap is automatic but errors happen
8. If assessed value looks wrong, call the Property Appraiser's office for an informal review first
9. File a VAB petition by your TRIM deadline if informal review doesn't resolve it