Florida Property Tax Guide · Central Florida
Florida Property Taxes: How Your Bill Is Calculated and Why It Won’t Match the Seller’s
Florida has no state income tax, which is one of the big draws. But property taxes catch buyers off guard more than almost anything else in the homebuying process. Here’s exactly how it works.
How Florida Property Taxes Are Actually Calculated
Florida property taxes are built on three numbers that multiply together:
Market Value (Just Value): What your county property appraiser believes your home is worth on the open market. When you buy, the purchase price is strong evidence of market value, and the county will generally assess your new home at or near what you paid.
Assessed Value: For homesteaded primary residences, assessed value is capped by the Save Our Homes law at no more than 3% annual increases once your homestead exemption is established. For investors and second-home owners, the non-homestead cap limits increases to 10% per year. When a home sells, the cap resets for the new owner.
Taxable Value: Assessed value minus any exemptions (homestead, senior, veteran, disability, etc.). This is the number your tax rate is applied to.
Millage Rate: Florida expresses tax rates in mills — one mill equals $1 per $1,000 of taxable value. Your total millage rate combines levies from multiple taxing authorities: county general fund, school district, city (if applicable), water management district, and any special districts. In Central Florida, combined millage rates typically fall between 13 and 18 mills.
Why the Seller’s Tax Bill Is Not Your Tax Bill
This is the most important thing I tell every buyer I work with, and it almost never comes up at the kitchen table with the seller’s agent.
When a longtime Florida homeowner sells their home, their assessed value may be far below current market value — protected for years by the Save Our Homes cap. The day you close, that protection disappears for you. Your county will reassess the property at full market value in the year following your purchase.
A real scenario: A seller has owned their home for 15 years. They bought at $250,000, and with 3% annual cap, their assessed value is around $389,000 despite the home now selling for $575,000. Their annual tax bill: roughly $5,500. Your first full year? Potentially $8,600 — the same millage rate, but applied to a taxable value of $525,000 (purchase price minus your $50,000 homestead exemption).
Always ask for a projected tax estimate, not the current tax bill.
Before you make an offer, I’ll run you a realistic property tax projection based on today’s market value. This affects your monthly payment, your debt-to-income ratio, and your escrow. It’s one of the most overlooked numbers in the homebuying process.
When Taxes Are Due and How to Pay Less
Florida property taxes are paid in arrears — meaning in November 2026, you’re paying for calendar year 2026. The earlier you pay, the more you save:
| Payment Month | Discount | Deadline |
|---|---|---|
| November | 4% off | November 30 |
| December | 3% off | December 31 |
| January | 2% off | January 31 |
| February | 1% off | February 28 |
| March (no discount) | 0% | March 31 |
| After April 1 | Delinquent — interest + penalties apply | — |
If your mortgage lender collects monthly escrow for taxes, they handle the payment timing for you — but they may not always take the early-payment discount. It’s worth asking.
Your TRIM Notice and How to Challenge Your Assessment
Every August, Florida property owners receive a TRIM notice — Truth in Millage. This is your proposed tax bill before it becomes final. It shows your proposed assessed value, proposed millage rates, and estimated tax bill for the year.
If you believe the assessed value is higher than your home’s actual market value, you have 25 days from the TRIM notice mailing date to file a petition with the Value Adjustment Board (VAB). This is free to file, and many homeowners do successfully lower their assessments.
Evidence that helps in a VAB petition:
- Recent comparable sales showing homes like yours sold for less than your assessed value
- An independent appraisal
- Documentation of condition issues (roof age, deferred maintenance, structural issues)
- Evidence the property has been on the market at a lower price without selling
🧮 Florida Property Tax Bill Estimator
Get a realistic estimate of what your annual property tax bill will be as a new buyer in Central Florida — not the seller’s capped rate.
Estimate based on stated millage rates and standard exemptions. Actual bills depend on your exact tax district and final assessment.
Frequently Asked Questions
How are Florida property taxes calculated?
Your taxable value (market value minus exemptions) is multiplied by the combined millage rate from all local taxing authorities. One mill = $1 per $1,000 of taxable value. Central Florida combined rates typically range from 13 to 18 mills depending on your location.
Why is my tax bill higher than the previous owner’s?
The previous owner’s assessed value was likely capped far below market value by the Save Our Homes law. When you buy, the property is reassessed at current market value — and you start building your own cap from scratch after your homestead is established. This is normal and expected; the key is planning for it before you close.
What is a TRIM notice?
Truth in Millage — the notice mailed every August showing your proposed assessed value and estimated tax bill. You have 25 days to challenge the assessment with the Value Adjustment Board if you believe your home is over-assessed.
What is the non-homestead cap in Florida?
Investment and second-home properties have a 10% annual cap on assessed value increases. It’s less protective than the 3% homestead cap but still limits how fast a landlord’s bill can rise. When the property sells, the cap resets for the new owner.
When are Florida property taxes due?
Bills are mailed in November. Pay by November 30 for a 4% discount, or March 31 with no discount. After April 1, the bill becomes delinquent with interest and penalties.
Can I appeal my Florida property tax assessment?
Yes. File a petition with your county’s Value Adjustment Board within 25 days of your TRIM notice. Bring comparable sales showing homes like yours sold for less than your assessed value. Many petitions result in a lower assessment — and it’s free to file.
I’ll Run Your Real Tax Projection Before You Make an Offer
The seller’s tax bill is not your tax bill. Before you fall in love with a home, let’s figure out what you’ll actually be paying every month — taxes included.
Get a Free Tax Projection