"The listing said the taxes were about this much. Why is my bill so much higher?"
That's one of the most common calls I get from buyers a year after closing, especially buyers relocating to Central Florida from another state. Florida has no state income tax, which people love. But it means local property taxes do a lot of the work of funding schools, counties, cities and special districts. And the way Florida calculates those taxes has a few twists that catch new homeowners off guard.
Here's a plain-English guide to how it works, what changes when you buy, and the one deadline every new Florida homeowner should have on their calendar.
Who decides what you pay
Two offices in your county handle property taxes, and it helps to know which one does what.
The Property Appraiser sets the value of your home each year and manages exemptions like homestead. In Central Florida that's the Orange, Osceola or Polk County Property Appraiser, depending on where you buy.
The Tax Collector sends the bill and collects the payment.
The tax rates themselves are set by local taxing authorities: the county, the school board, your city if you're inside city limits, and other districts. Those rates are called millage rates. One mill equals $1 of tax for every $1,000 of taxable value. That's why two similar homes a few miles apart can have very different bills. They can sit in different cities or districts with different rates.
Market value, assessed value and taxable value
Your tax notice will show a few different numbers. Here's what they mean:
Market (or "just") value. The appraiser's estimate of what your home was worth as of January 1.
Assessed value. Market value, minus any limits on how fast it can rise (more on that below).
Taxable value. Assessed value, minus any exemptions you qualify for.
Your tax is basically the taxable value multiplied by the combined millage rate. Then any flat fees, called non-ad valorem assessments, are added on top.
The big surprise: your taxes reset when you buy
This is the part I most want buyers to understand.
Florida's Save Our Homes benefit limits how much the assessed value of a homesteaded home can rise each year: no more than 3% or the change in the Consumer Price Index, whichever is lower. If the seller has lived in the home for many years, their assessed value may be far below today's market value, and their tax bill may look very low.
That benefit does not transfer to you. After a sale, the home is reassessed at market value as of the next January 1. So the seller's tax bill on the listing is not a good estimate of what you'll pay.
When we help buyers budget, we estimate taxes on the purchase price, not the seller's bill. If you're getting a mortgage, your lender should do the same. If they don't, your escrow account can come up short after the first year, and your monthly payment will go up to cover it.
The homestead exemption (and the March 1 deadline)
If the home will be your permanent primary residence, the homestead exemption is the most valuable thing you can file for.
What it does: it can take up to $50,000 off your home's assessed value. The first $25,000 applies to all property taxes, including school taxes. The second portion applies to assessed value above $50,000 and doesn't apply to school taxes, so the actual savings depend on your home's value and local rates.
It turns on Save Our Homes. Once you have homestead, that annual cap on assessed value increases starts protecting you going forward.
Who qualifies: you must own the home and make it your permanent residence as of January 1 of the tax year.
When to apply: by March 1 of that year, with your county Property Appraiser. Most counties let you apply online.
Here's how the timing works in real life. If you close on a home in 2026 and move in, you'd be living there on January 1, 2027. You'd then apply by March 1, 2027, and the exemption would apply to your 2027 tax bill.
Have your documents ready: a Florida driver's license or ID with the new address, your vehicle registration, and voter registration if you're registered. Your county's website lists exactly what it accepts.
Homestead doesn't renew itself for new owners. Even if the seller had it, you must file your own application.
Moving within Florida? Ask about portability
If you're selling one Florida homestead and buying another, you may be able to bring part of your Save Our Homes savings with you. This is called portability. You can transfer up to $500,000 of the difference between your old home's market value and assessed value, but you have to apply, and there's a limited window to set up your new homestead (currently three years from January 1 of the year you gave up the old one).
This can make a real difference for long-time Florida owners who are upsizing or downsizing. It's worth asking the Property Appraiser before you buy, not after.
Second homes, rentals and investment properties
If the home is not your primary residence, such as a vacation rental near Disney or a long-term rental in Kissimmee or Davenport, it won't qualify for homestead. These properties have a separate cap: their assessed value can't rise more than 10% a year for non-school taxes. School taxes aren't capped. Investors should budget for that and for the full reassessment after purchase.
Other exemptions worth asking about
Florida and many counties offer additional exemptions. They may be available for qualifying seniors, surviving spouses, people with disabilities, and veterans with service-connected disabilities. The rules and amounts vary, so check your county Property Appraiser's website or call their office.
What else shows up on your tax bill
Your bill isn't only property tax. It can also include flat non-ad valorem assessments for things like:
Solid waste (trash pickup) and stormwater, in some areas
CDD assessments if the home is in a Community Development District, common in newer master-planned communities around Orlando, Davenport and Kissimmee
Special district fees for things like street lighting
Before you make an offer, ask for the most recent tax bill and look at these line items. A CDD assessment can noticeably change your monthly cost.
When the bill comes (and how to save)
Florida property taxes are paid in arrears, meaning you pay for the current year near the end of it.
August: you'll get a TRIM notice ("Truth in Millage"). It shows your proposed value, exemptions and estimated taxes. If you think the value is wrong, this is when you can talk to the Property Appraiser and, if needed, file a petition with the Value Adjustment Board. Watch the deadline on the notice.
Around November 1: tax bills go out.
Early-payment discounts: 4% if paid in November, 3% in December, 2% in January and 1% in February.
March 31: the last day to pay. Taxes become delinquent on April 1.
If you have an escrow account, your lender usually pays the bill for you, often in November to get the discount. It's still a good idea to look at the bill when it arrives so you can catch a missing exemption.
What happens at closing
Because taxes are paid in arrears, the seller hasn't paid the current year's taxes when you close. So the taxes are prorated. The seller credits you for their share, from January 1 to the closing date, and you pay the full bill when it arrives in November. Your settlement statement will show this credit.
The bottom line
Florida property taxes aren't complicated once you know the rules. Budget on the price you're paying, not the seller's bill. File for homestead by March 1 if it's your primary home. And read every line of the tax bill, including any CDD, before you buy.
This article is general information, not tax, legal or financial advice. Exemptions, caps, rates and deadlines are set by Florida law and your county and can change. Always confirm details with your county Property Appraiser and Tax Collector, and talk to a tax professional about your situation.
Buying or relocating to Central Florida?
We'll help you estimate the real monthly cost of a home, including taxes, HOA and any CDD, before you make an offer. Contact Corinne DeFilippis to get started.
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