Property Taxes

The seller’s tax bill is a starting point

A long-time owner may have a substantial Save Our Homes assessment difference and exemptions that do not follow the property to its buyer. Following a change of ownership, Florida generally reassesses the property at just value on January 1 of the next year, subject to statutory exceptions. Your own eligibility, exemptions and portability then matter.

A closing proration divides the current-year bill between parties under the contract. It does not establish next year’s assessment or your ongoing tax cost. Just value is determined by the property appraiser; it is not automatically identical to the sale price.

Three values, three different roles

• Market or just value: the appraiser’s estimate of the property’s value as of the assessment date.
• Assessed value: the value after applicable assessment limitations and adjustments, before exemptions.
• Taxable value: assessed value less the exemptions that apply to a particular taxing authority. School and non-school taxable values can differ.

Ad valorem taxes apply the relevant millage rate to taxable value. One mill is $1 per $1,000 of taxable value. Non-ad valorem assessments are separate charges that are not calculated from property value; a lower taxable value does not necessarily reduce them.

Homestead exemption in 2026

Eligibility generally requires ownership and permanent Florida residence at the property as of January 1. Apply to the county property appraiser by March 1 of the benefit year. A seasonal residence does not qualify simply because you own it. Confirm your documentation and any late-filing options with the appraiser.

Exemptions reduce taxable value; they are not dollar-for-dollar tax credits. Non-ad valorem assessments and other charges can remain payable. Additional exemptions may apply based on individual eligibility.

Save Our Homes limits assessment growth

After the homestead base year, Save Our Homes generally limits annual increases in assessed value to the lower of 3% or the applicable Consumer Price Index change. It does not cap the entire tax bill: millage rates, improvements, exemptions and non-ad valorem assessments can change what you pay.

Just value and assessed value may diverge over time. The assessment can still rise under the cap in a year when market value falls, provided assessed value remains below just value. The benefit is attached to the qualifying owner’s homestead history, subject to the rules on changes of ownership.

Portability can carry your Florida benefit

Eligible owners moving between Florida homesteads may transfer up to $500,000 of their Save Our Homes assessment difference. This is a reduction in assessed value, not a transfer of the old tax bill or a $500,000 exemption.

You must establish the new homestead by January 1 of the third year after abandoning the previous homestead. Apply for portability with the new homestead application by March 1. Joint ownership, spouses and a move to a lower-valued home can affect the calculation.

When moving to an equal- or higher-valued home, the eligible difference is generally transferred up to the cap. When downsizing, the transfer is proportional to the new and former just values, subject to the cap. Ask the appraiser to confirm both the amount and the timeline before budgeting for the benefit.

Proposed Florida 2026 Amendment 3

The proposal would increase the non-school homestead exemption to as much as $150,000 in 2027 and $250,000 in 2028, with inflation adjustments thereafter. The school exemption would remain $25,000. It would also reduce the assessment-growth cap for qualifying non-homestead property from 10% to 5% and address permitted uses of local property-tax revenue.

December 31, 2026 concerns permanent Florida residency, not a purchase deadline. The text distinguishes people who maintained permanent Florida residence by that date from later residents. Buying a property by itself does not establish eligibility for the proposed treatment.

For people who did not maintain permanent Florida residence as of December 31, 2026, the text provides an initial non-school exemption of up to $50,000, with the increased exemption beginning in the fifth year of homestead exemption, to the extent permitted by the U.S. Constitution. That is not simply five years of residency. Implementation and individual eligibility would require further guidance if approved.

The Amendment 3 calculator is intended for properties currently receiving homestead exemption. It estimates the proposed homestead changes; it does not model the separate non-homestead cap change and does not guarantee savings.

Plan for the full cost of ownership

Build a post-purchase budget using a buyer tax estimate, then add the expenses outside ad valorem property tax. Confirm what each estimate includes so you do not omit or count a charge twice.

• Non-ad valorem assessments: review the separate charges on the tax bill and ask the issuing authority about their basis and expected duration.
• HOA or condominium costs: request current dues, the adopted budget, reserve information and pending or approved special assessments. Confirm what is included and what you pay separately.
• Mandatory club costs: verify whether the property requires membership and obtain current initiation, transfer, recurring dues, minimum-spending and assessment terms in writing from the club.
• Insurance and ongoing care: obtain property-specific insurance quotes and plan for utilities, maintenance and any dock, pool or landscape services.

HOA assessments depend on the association’s governing documents and budget. Private association and club charges are separate from government property taxes; homestead and portability do not reduce those private charges.

Before you finalize the ownership budget

1. Review the property record, current assessment, exemptions and non-ad valorem charges.
2. Run the official buyer tax estimate and confirm your homestead eligibility.
3. If moving from another Florida homestead, verify portability amount and timing.
4. Keep any proposed Amendment 3 scenario separate from the budget under current law.

The property appraiser determines values and exemptions; taxing authorities set rates and assessments. Contact Palm Beach County Exemption Services at 561-355-2866 for eligibility questions. These explanations support planning; confirm your property-specific result with the appraiser and your tax adviser.