October 14, 2026

How Property Taxes Work in South Florida: A Buyer's Guide

Oct 14, 2026 · @Meghan S Romanelli

The one rule every buyer should know

The property tax on a listing is the seller's bill, not yours. In Florida, a home's taxable value resets to market value the year after it sells, so your first full tax bill is often much higher than what the seller paid.

Florida has no state income tax, so local governments lean on property taxes. Most buyers I work with in Boca Raton, Delray Beach, Highland Beach, Lighthouse Point and Pompano Beach budget roughly 1.5% to 2% of the purchase price per year for property taxes. Your exact number depends on the city, the county and whether the home is your primary residence.

Here's how it works, what you can do to lower it, and what's on the ballot this November that could change it.

How your tax bill is calculated

Your bill is your home's taxable value times the local tax rate, plus any flat assessments for things like trash or drainage.

Just (market) value. The county property appraiser sets this every January 1.
Assessed value. Market value, minus any cap protection the owner has earned (more on caps below).
Taxable value. Assessed value minus exemptions, like the homestead exemption.
Millage. Each taxing body (county, city, school board, fire, hospital district and others) sets a rate in "mills." One mill is $1 for every $1,000 of taxable value.

A home with $800,000 of taxable value in an area with a combined rate of 19 mills pays about $15,200 a year, before flat assessments.

Broward vs. Palm Beach. Lighthouse Point and Pompano Beach are in Broward County; Boca Raton, Delray Beach and Highland Beach are in Palm Beach County. For reference, Broward's county-wide general rate is 5.6658 mills for 2026-27, and Palm Beach County's is 4.5000. Those are just one slice. Once you add the school board, city and special districts, combined rates in our area typically land around 16 to 21 mills (approximate; always check the exact address).

The easiest way to check a specific home is the county tax estimator: the Palm Beach County Property Appraiser or the Broward County Property Appraiser. Both let you enter a purchase price and see what a new owner would pay.

Why your taxes jump after you buy

When a home sells, the seller's capped value goes away and the home is reassessed at market value on the next January 1. A seller who has homesteaded a house for 15 years may be paying tax on a fraction of what you're paying for it.

This is the number one complaint Florida property appraisers hear, and it's why I never let buyers budget off the seller's tax bill shown on a listing.

Here's a simplified example using a 19-mill combined rate:

Seller (owned since 2010, homesteaded)

You (buy at $1,200,000, homesteaded)

Assessed value

$450,000

$1,200,000

Homestead exemption

about $50,000

Taxable value

about $400,000

about $1,150,000

Annual property tax

about $7,600

about $21,900

Same house, nearly three times the bill. Numbers are illustrative; the real figure depends on the exact address and rates.

The homestead exemption: file by March 1

If the home is your permanent, primary residence, the homestead exemption is the single biggest way to lower your bill. For 2026, it takes up to $51,411 off your assessed value: $25,000 off all taxes, including school taxes, plus another $26,411 off non-school taxes (that second piece now rises with inflation each year).

Who qualifies: You must own the home and live in it as your permanent residence as of January 1 of the tax year.

Deadline: March 1. Buy in 2026 and move in before January 1, 2027? File by March 1, 2027.

What you'll need: Florida driver's license with your new address, Florida vehicle registration, voter registration (if registered), and Social Security numbers for each owner applying.

Where to file: Online through the Palm Beach County Property Appraiser or the Broward County Property Appraiser. It takes about 15 minutes and you only file once; it renews automatically.

The exemption doesn't apply to second homes, investment properties or rentals.

Caps that protect you after year one

Once you're homesteaded, Florida limits how fast your assessed value can rise, even if the market keeps climbing.

Save Our Homes (primary residences): Assessed value can rise no more than 3% a year, or the rate of inflation if lower. This is why long-time owners pay so much less than new buyers.
Non-homestead cap (second homes, rentals): Assessed value can rise no more than 10% a year for non-school taxes. School taxes are not capped.
Portability: Already homesteaded somewhere else in Florida? You can move up to $500,000 of your Save Our Homes savings to your new home. You must apply for it with your new homestead, and you generally have up to three years from January 1 of the year you left your old home.

Caps limit your assessed value, not your tax rate. If local governments raise millage, your bill can still go up.

When taxes are due (and how to save 4%)

Florida property taxes are paid in arrears: the bill you get in November covers the calendar year that's ending.

When

What happens

January 1

Ownership, value and homestead status are locked in for the year

March 1

Homestead exemption deadline

Mid to late August

TRIM notice ("Notice of Proposed Property Taxes") arrives. This is not a bill, but it's your chance to question your value

November 1

Tax bills go out

November

Pay in full for a 4% discount (3% in December, 2% in January, 1% in February)

March 31

Final due date; unpaid taxes become delinquent April 1

At closing, taxes are prorated. Because the year's bill hasn't been paid yet, the seller credits you for the days they owned the home, and you pay the full bill in November. If you have a mortgage, your lender will usually collect taxes monthly through escrow, and many start with the seller's lower bill. Ask your lender to escrow for your estimated new taxes so you don't get hit with an escrow shortage and a higher payment a year later.

Taxes you'll see at closing

Florida also charges one-time taxes when a home changes hands. In Broward and Palm Beach counties, custom and the standard Florida purchase contract split them like this (the contract can change who pays):

Tax

Rate

Usually paid by

Documentary stamps on the deed

$0.70 per $100 of the sale price

Seller

Documentary stamps on the mortgage note

$0.35 per $100 of the loan

Buyer

Intangible tax on the mortgage

$0.20 per $100 of the loan

Buyer

Quick math for financed buyers: multiply your loan amount by 0.0055. On an $800,000 loan, that's about $4,400. Paying cash? You skip both mortgage taxes.

What's on the ballot: Amendment 3 (November 3, 2026)

Florida voters will decide on Amendment 3 on November 3, 2026. It needs 60% of the vote to pass. If it passes, it takes effect January 1, 2027, with the first changes showing on November 2027 tax bills. Here's what it would do, as described by Florida property appraisers:

Bigger homestead exemption for non-school taxes: up to $150,000 in 2027 and $250,000 in 2028, then adjusted for inflation. The school-tax exemption stays at $25,000, so you'd still pay school taxes.
A residency date that matters: People who are permanent Florida residents by December 31, 2026 would qualify for the bigger exemption, even if they buy later. People who become residents on or after January 1, 2027 would start with a $50,000 exemption and qualify for the larger one after four years of homestead.
Lower cap for second homes and rentals: The non-homestead cap would drop from 10% to 5% a year (non-school taxes only).
No change to Save Our Homes or portability.

Cities and counties set their own rates every year, so the actual savings will depend on how they respond. If you're relocating to Florida, talk with me and a tax advisor about the December 31, 2026 residency date.

One more change for buyers: starting in February 2027, a new state law requires listing websites to stop showing the seller's taxes and instead estimate what a new buyer would pay.

Your buyer tax checklist

Ignore the seller's tax bill on the listing; run the county tax estimator at your expected purchase price
Budget roughly 1.5% to 2% of the price per year, then refine with the estimator
Ask your lender to escrow for your new tax amount, not the seller's
Note the documentary stamp and intangible taxes on your closing estimate
Move in and file for homestead by March 1 of the following year
Coming from another Florida home? Apply for portability with your homestead
Pay in November to take the 4% discount

Buying in Boca Raton, Delray Beach, Highland Beach, Lighthouse Point or Pompano Beach? I'll run a realistic tax estimate on every home we look at, so there are no surprises after closing. Reach me at 954-405-2719 or meghan.s.romanelli@compass.com.

Meghan Romanelli is a licensed Florida Realtor with The Premier Group at Compass. This article is general information, not tax or legal advice. Rates and rules change; confirm figures with the county property appraiser, the tax collector or a tax professional.