Understand Florida Property Taxes Before You Move
A plain-English guide to exemptions, the Save Our Homes cap, and how to challenge an assessment as a Florida homeowner.
For New Jersey homeowners considering Florida, the property tax structure is one of the biggest adjustments. Florida has no state income tax, and its property tax system works differently: exemptions, assessment caps, and an appeal process that varies by county. This guide explains the pieces so you can compare real numbers before you buy.
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Florida property taxes work differently from New Jersey. There is no state income tax, and property taxes are based on assessed value rather than market value. The Homestead Exemption can reduce your assessed value by a significant amount if you apply with your county property appraiser by the deadline. The Save Our Homes cap limits annual assessment increases on homesteaded properties, and that benefit may be portable to a new home within certain rules. If you believe your assessment is wrong, you can file a petition with the county's Value Adjustment Board, but deadlines are strict. Insurance costs are separate from property taxes and vary by property. Every situation is different, so consult a licensed tax professional for your specific numbers.
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How Florida Property Taxes Work
Florida property taxes are determined at the local level. Counties, cities, school districts, and special taxing districts each set their own millage rates (the rate per $1,000 of taxable value). The county property appraiser determines the assessed value of your property, and the tax collector sends you the bill.
Millage Rates
Each taxing authority sets a millage rate. One mill equals $1 per $1,000 of taxable value. Your total rate is the sum of all applicable millage rates. These rates can change annually based on local budgets.
Assessed Value vs. Market Value
The property appraiser assesses your property's value as of January 1 each year. This assessed value may differ from what your home would sell for on the open market. Exemptions and caps are applied to the assessed value, not the market value.
The TRIM Notice
Each summer or early fall, the county property appraiser mails a Notice of Proposed Property Taxes, often called a TRIM notice. It shows your property's assessed value, the proposed millage rates, your estimated tax bill, and the deadline to file a protest. Review this notice carefully when it arrives.
The Homestead Exemption
The Homestead Exemption is a tax break for Florida residents who own and occupy their primary residence. It reduces the assessed value of your home before taxes are calculated, lowering your annual property tax bill.
How It Works
You must apply for the exemption with your county property appraiser. The deadline and the dollar amount vary. To get the current exemption amount and filing deadline for your county, visit your county property appraiser's website or call their office directly.
Requirements
- You must own the property and occupy it as your primary residence
- You must be a Florida resident as of January 1 of the tax year
- You must file an application with the county property appraiser
- You can claim the exemption on only one property
Deadlines and exemption amounts are set by Florida law and can change. Verify current requirements with your county property appraiser's office.
Save Our Homes Cap
The Save Our Homes amendment to the Florida Constitution limits the annual increase in the assessed value of homesteaded properties to no more than 3% or the rate of inflation, whichever is lower. This cap keeps your taxable value below market value over time, especially in fast-appreciating markets.
What This Means for You
If you buy a home in Florida and claim the Homestead Exemption, your assessed value starts at the purchase price. Each year after that, the assessed value cannot rise faster than 3%, even if market values jump 10% or more. Over a decade, this gap can grow substantially, keeping your tax bill well below what it would be based on current market value.
This cap applies only while you own and occupy the home as your primary residence. It does not apply to investment properties, second homes, or commercial properties.
Portability
Florida's portability law allows homeowners who have built up a Save Our Homes benefit on their current homesteaded property to transfer some or all of that benefit to a new Florida home, within a certain time window. This can reduce the assessed value of your new home.
How Portability Works
When you sell a homesteaded Florida home and buy another Florida home, the difference between your old home's market value and its assessed value (the benefit you accumulated under Save Our Homes) can be transferred to the new home. The new home's assessed value is reduced by that amount, up to a limit set by law.
The cap benefit can be ported to a home of equal or greater value, or partially ported if the new home is less expensive. The application must be filed within a specific timeframe.
Portability rules, limits, and deadlines are set by Florida law and may change. Verify current portability requirements with your county property appraiser's office.
Challenging Your Assessment (Value Adjustment Board)
If you believe the assessed value on your property is too high, you have the right to file a petition with your county's Value Adjustment Board (VAB). The VAB is an independent panel that hears disputes between property owners and the property appraiser.
What You Are Challenging
You challenge the assessed value, not the tax rate. You must show that the property appraiser's estimate of your property's value is higher than its actual fair market value as of January 1 of the tax year.
What Evidence Helps
- Recent comparable sales of similar properties in your neighborhood
- A professional appraisal
- Photos showing damage, deferred maintenance, or conditions that reduce value
- Sales data of your own property if it was recently purchased
Deadlines Are Strict
Petition deadlines are set by each county and are often tied to the date on your TRIM notice. Missing the deadline means you lose the right to appeal for that tax year. Check your TRIM notice and your county property appraiser's website for the exact deadline.
Deadlines and procedures vary by county. Verify current VAB rules and filing windows with your county property appraiser's office or the Florida Department of Revenue.
Insurance Is Separate
Windstorm and homeowners insurance are separate from property taxes and vary significantly by property. Insurance costs depend on factors such as your home's location, age, construction type, roof condition, and proximity to the coast.
Always consult your carrier or a licensed Florida insurance agent for property-specific coverage and cost details. Do not rely on general estimates when planning your monthly budget.
NJ vs. FL: The Big Picture
The two states take fundamentally different approaches to taxation. Here is a factual, balanced comparison:
New Jersey
- Progressive state income tax (1.4% to 10.75%)
- Among the highest effective property tax rates in the nation
- No assessment cap for primary residences
- No homestead exemption comparable to Florida's
- No portability of tax benefits
Florida
- No state personal income tax
- Lower effective property tax rates on average
- Save Our Homes 3% assessment cap on homesteaded properties
- Homestead Exemption available for primary residences
- Portability allows transferring cap benefits
Every situation is different. Your actual tax liability depends on your income, home value, county, and personal circumstances. Consult a licensed tax professional for numbers specific to your situation.
Plan Your Florida Transition With an Expert
Scott Selleck, licensed in both New Jersey and Florida since 1993 with over 500 transactions closed, helps NJ homeowners plan the financial side of a Florida transition and connects them with trusted professionals in their destination market.
Or call (201) 970-3960
Important Notice: Figures and rules on this page are for general education and can change. This is not tax or legal advice. Consult a licensed tax professional and your county property appraiser's office for current requirements. Scott Selleck is not a tax professional and cannot provide tax advice. Insurance costs are separate from property taxes and vary by property; consult your carrier or a licensed Florida insurance agent for property-specific coverage and cost details.
This content was created with AI assistance and reviewed for fair housing compliance.