Florida's property tax system is more nuanced — and more homeowner-friendly — than most states, but only if you know how to use it. The core tools are the homestead exemption, the Save Our Homes assessment cap, and portability. Missing any of them costs real money every year.
Florida Property Tax Basics
Property tax in Florida is assessed at the county level. The formula: (Assessed Value minus Exemptions) x Millage Rate = Annual Tax. Millage rates vary by county and municipality — typically ranging from 10 to 22 mills (1 mill = $1 per $1,000 of taxable value). For a home with $300,000 in taxable value at 15 mills, annual tax = $4,500.
Florida property tax bills are sent in November and due by March 31 of the following year. Discounts apply for early payment: 4% in November, 3% in December, 2% in January, 1% in February.
The Homestead Exemption
Florida's homestead exemption reduces the assessed value of your primary residence by $50,000 for most taxing purposes ($25,000 fully exempt plus $25,000 exempt from school levies). On a home assessed at $400,000, the exemption brings taxable value to $350,000. At 15 mills, that is $750 per year in savings.
Who qualifies: You must own and live in the home as your permanent residence as of January 1. You cannot claim homestead in Florida while claiming a primary residence exemption in another state.
How to file: Apply with your county property appraiser's office by March 1 of the first year you want the exemption. It renews automatically. Miss the March 1 deadline and you wait a full year.
Save Our Homes Assessment Cap
The Save Our Homes (SOH) cap limits how much your homesteaded property's assessed value can increase each year — to the lesser of 3% or the CPI increase. This is automatically applied once you file homestead.
Example: You buy a home for $400,000 in 2020. By 2024, market value reaches $600,000. With a 3% annual SOH cap, your assessed value is only about $450,000. You pay taxes on $450K, not $600K — roughly $2,250/year in savings at 15 mills.
The catch: The SOH cap resets when you sell. A buyer of that $600K home starts with a $600K assessed value. This lock-in effect is addressed by the portability provision.
Portability: Taking Your SOH Benefit With You
Florida's portability provision lets you transfer your accumulated SOH benefit to a new homestead when you move within Florida. You can transfer up to $500,000 of the difference between your old home's just value and assessed value.
Example: Old home had just value $600,000 and assessed value $450,000 — a $150,000 SOH benefit. You buy a new home for $800,000. With portability, new home's assessed value starts at $650,000, saving about $2,250/year in taxes.
How to claim: File Form DR-501T with your county property appraiser when you apply for homestead on the new home. Must file within 3 years of abandoning your old homestead. Missing this window forfeits the benefit permanently.
Non-Homestead Properties
Investment properties, rental properties, and vacation homes do not get the homestead exemption or SOH cap. They are subject to a 10% annual assessment increase cap and pay full millage rates. Factor in the full unprotected assessed value when projecting costs on Florida investment property.
How to Appeal Your Assessment
If you believe your assessed value is too high, petition the Value Adjustment Board (VAB) — an independent body that reviews assessments. The deadline is typically 25 days after the TRIM (Truth in Millage) notice arrives in August. No attorney needed. Evidence that helps: recent comparable sales below your assessed value, a private appraisal, documentation of property defects.
County-by-County Rate Variation
As of 2025, millage rates (all levies combined) range from about 12-13 mills in lower-tax counties (Sarasota, Collier) to 18-22 mills in higher-cost municipalities within Broward and Miami-Dade. Always check the specific millage rate for the exact municipality and school district of any home you are considering — rates within a county can vary by 3-5 mills.