You finally closed on that sun-drenched ranch in Sarasota or a breezy condo in Boca. The palm trees are swaying, the moving boxes are half-unpacked, and then you see it. Your first "estimated" tax bill. Or maybe you're just browsing Zillow and seeing a house that sold for $600,000 with taxes of only $2,400 a year and thinking, "Wow, Florida is cheap!"
I hate to be the one to burst that bubble, but you're probably looking at a "ghost" tax rate.
Property tax rates in Florida are some of the most misunderstood numbers in the entire real estate market. People move here from New York or California expecting a straightforward percentage, but Florida’s system is a wild mix of "millage rates," "Save Our Homes" caps, and sudden "reset" shocks that can triple a bill the year after you buy.
The Millage Rate Maze
First off, forget about a flat state tax. Florida doesn't have one. Instead, your bill is a patchwork of "millage rates" set by your county, your city, the school board, and even weird little entities like water management districts or mosquito control.
One "mill" is basically $1 for every $1,000 of your property's taxable value.
If your town has a total millage rate of 18, you’re looking at $18 for every $1,000 of value. It sounds small. Until you realize that "value" isn't always what you think it is. Honestly, the most important thing to understand is that there are actually three different "values" for every single dirt lot and mansion in the state:
- Just Value: This is basically the market value—what the property appraiser thinks it would sell for.
- Assessed Value: This is the Just Value after applying the legal caps (we'll get to those in a second).
- Taxable Value: This is what’s left after you subtract exemptions like the Homestead. This is the only number that actually determines your check.
Why Your Neighbor Pays Less Than You
This is the part that makes new residents want to scream. You buy a house for $500,000. Your neighbor has an identical house, also worth $500,000. You pay $6,500 in taxes; they pay $1,800.
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Are they friends with the Mayor? No. They just haven't moved since 1995.
Florida has a rule called the Save Our Homes (SOH) cap. Once you get a Homestead Exemption on your primary residence, the "Assessed Value" of your home can’t go up more than 3% (or the rate of inflation, whichever is lower) per year. For 2025, that cap was set at 2.9%.
If the market in Tampa or Miami goes up 15% in a year, the long-term resident is protected. Their "Just Value" skyrockets, but their "Assessed Value" (the one they pay taxes on) crawls along at that 3% limit.
The "Welcome to Florida" Tax Reset
Here is the trap. When a house sells, that 3% cap disappears. Poof.
The very next January 1st, the property appraiser resets the "Assessed Value" to the full "Just Value" (the price you likely just paid). If the previous owner lived there for 20 years, their assessed value might have been $150,000 while the house is now worth $600,000.
Your first year of taxes will be based on their old, low rate. You’ll feel great. Then, in year two, the appraiser hits the reset button, and your bill jumps to reflect the $600,000 price tag. I've seen people's mortgage payments jump by $400 a month because their escrow account fell short after this reset. It’s brutal.
Real Numbers: County by County
The actual property tax rates in Florida vary wildly depending on where you plant your flag. Historically, you'll find the lowest "effective" rates in places like Walton County (around 0.53%) or Franklin County. On the flip side, places like Alachua or Miami-Dade often have much higher millage rates because they provide more urban services or have massive school budgets.
A common "rule of thumb" is to estimate about 1.1% to 1.3% of your purchase price for taxes, but that’s a gamble. If you’re in a city with its own millage (like the City of Miami), you’re paying the city rate on top of the county rate.
| County Example | Approx. Effective Rate | Typical Vibe |
|---|---|---|
| Walton | ~0.53% | Low taxes, panhandle beaches. |
| Hillsborough (Tampa) | ~0.84% | Mid-to-high, urban services. |
| Glades | ~1.11% | Surprisingly high rate for a rural area. |
| Miami-Dade | ~1.0% | High values + high rates = big bills. |
Note: These are effective rates based on median values; your actual millage will vary by specific zip code and city limits.
The Homestead Exemption: Your Only Real Defense
If you’re going to live here permanently, you absolutely must file for the Homestead Exemption. You have until March 1st of the year you want it to start.
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It does two big things:
- It knocks up to $50,000 off your assessed value (though only the first $25,000 applies to school taxes).
- It triggers that 3% Save Our Homes cap.
There are other "kickers" too. If you're a widow or widower, you get an extra $500 off. If you're blind or totally disabled, there are bigger exemptions.
The Veteran "Super" Exemptions
Florida is very friendly to veterans. If you have a service-connected disability of 10% or more, you get a $5,000 exemption. But here’s the big one: if you are 100% permanently and totally disabled due to your service, you might be exempt from paying property taxes on your homestead altogether. Zero. Zip.
I’ve talked to veterans who didn't realize this and paid thousands for years before filing. You don't get that money back retroactively in most cases, so get the paperwork to the appraiser's office immediately.
Portability: The "Secret" Discount
Suppose you've lived in a house in Orlando for 10 years. You have a huge "SOH benefit"—the difference between your market value and your capped assessed value. You decide to move to a bigger house in West Palm Beach.
Do you lose that 10 years of tax savings?
Actually, no. Florida allows "Portability." You can transfer (or "port") up to $500,000 of that tax savings to your new home. It’s sort of a moving discount. But you have to apply for it specifically using Form DR-501T. If you forget to file that form when you apply for your new homestead, you’re leaving thousands of dollars on the table.
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Don't Forget the "Non-Ad Valorem" Assessments
Your tax bill isn't just about the value of your house. There’s a section at the bottom for "Non-Ad Valorem Assessments."
These are flat fees that have nothing to do with your home's price. They cover things like:
- Solid waste (trash pickup)
- Stormwater drainage
- Special Lighting Districts
- CDD Fees (Community Development Districts)
If you buy in a fancy new planned community, your CDD fee could be $2,000 a year on its own. This is basically a bond the developer took out to build the roads and sewers, and they’re passing the debt to you through your tax bill. Always ask the seller if there’s a CDD fee. It's often the hidden reason one neighborhood's "taxes" look so much higher than the one across the street.
How to Fight Back
Every August, you’ll get a TRIM Notice (Truth in Millage). It’s not a bill. It’s a "heads up."
It tells you what the appraiser thinks your house is worth and what the proposed tax rates are. If you think they’ve got your value wrong—maybe they think you have a finished basement (unlikely in FL!) or a pool you don't actually have—you have a very short window (usually 25 days) to file an appeal with the Value Adjustment Board (VAB).
Don't bother complaining that "taxes are too high." They don't care. You have to prove that your "Just Value" is higher than the actual market value. Bring photos of your cracked foundation or a list of comparable sales that are lower than your assessment.
Actionable Next Steps for Homeowners
- Check the "Reset" Potential: If you're buying, go to the County Property Appraiser's website and use their "Tax Estimator" tool. Never rely on the previous owner's tax amount.
- File by March 1st: If you moved in last year, file your Homestead Exemption paperwork now. Don't wait.
- Search for Portability: If you sold a Florida home and bought a new one within the last three years, make sure you've filed to "port" your Save Our Homes benefit.
- Audit Your CDD: If you're looking at new construction, specifically ask for the CDD breakdown. It's a permanent part of your "tax" burden that doesn't go away with a Homestead Exemption.
- Verify Veteran Status: If you have any VA disability rating, take your benefit letter to the appraiser. Even the $5,000 "standard" disability exemption helps chip away at the bill.