Florida Property Taxes Explained: Homestead, SOH Cap & Save Our Homes
May 2026
Florida property taxes work differently than most states — and understanding the system is essential for buyers, especially because what you pay can differ dramatically from what your neighbor pays on an identical house. The difference comes down to the homestead exemption and the Save Our Homes assessment cap.
How Florida property taxes are calculated
Your annual property tax = Assessed Value × Millage Rate. The assessed value is set by your county Property Appraiser, not the sale price. Millage rates vary by county, city, and school district — typically running 17–22 mills in South Florida counties, meaning a $500,000 assessed home pays roughly $8,500–$11,000 per year.
Market value vs. assessed value vs. taxable value
- Market value (Just Value) — what the Property Appraiser estimates the property is worth on the open market
- Assessed value — for homesteaded properties, capped at the lower of market value or prior year assessed value + 3% (Save Our Homes cap)
- Taxable value — assessed value minus exemptions (homestead = up to $50,000)
The Save Our Homes cap
Once homestead is established, Florida's Save Our Homes amendment limits annual assessed value increases to the lower of 3% or the Consumer Price Index. In years with strong market appreciation, this creates a growing "SOH benefit." After 10 years in a hot market, a homesteaded owner may have an assessed value $150,000–$300,000 below current market value, saving $3,000–$6,000+ per year.
What new buyers should expect
When you buy a property, the SOH benefit resets. Your new assessed value will be close to your purchase price. Buyers frequently experience sticker shock when they receive their first Notice of Proposed Property Tax and see taxes 50–100% higher than the seller's disclosed amount. Always ask your agent to calculate your estimated taxes — not the seller's taxes — before making an offer.
When and how property taxes are paid in Florida
Florida property taxes are assessed on January 1 and billed in November. Bills are due by March 31. Florida offers early payment discounts: 4% in November, 3% in December, 2% in January, 1% in February. Most homeowners with mortgages pay through escrow accounts managed by their lender.
For personalized guidance on buying or selling in South Florida, contact the team at Pure Equity Realty. We serve Palm Beach, Broward, Miami-Dade, St. Lucie, and Highlands counties with expert representation and a 1% listing fee.