Florida Property Taxes Explained: What Buyers Actually Pay in 2026

Florida's property tax system is more complex than the "no state income tax" headline suggests. Understanding how assessed values are determined, how to reduce your bill through exemptions, and how CDDs affect your effective rate is essential for any Florida buyer.

Here's how it actually works.

2026 update: Florida lawmakers just placed a major property tax cut on the November ballot that would raise the homestead exemption to as much as $250,000 on non-school taxes. It isn't law yet — see Florida Property Tax Relief in 2026 for what could change and what it means for buyers.

How Florida property taxes are calculated

Step 1 — Assessed value: The county property appraiser determines your property's "just value" (market value) and "assessed value" (which may be different, due to caps and exemptions). For new purchasers, assessed value typically starts at or near purchase price in the first year.

Step 2 — Exemptions: Deductions from assessed value reduce your taxable value. The Homestead Exemption reduces assessed value by $50,000 for primary residences, bringing a $500,000 home to $450,000 in taxable value.

Step 3 — Millage rates: Your county, city, school board, and any special districts each set their own millage rate (tax per $1,000 of taxable value). These rates are added together to produce your total millage rate. In Orange County, total millage typically runs 10–12 mills; in Seminole County, 9–11 mills.

Step 4 — Tax calculation: Taxable value × total millage / 1,000 = annual property tax.

Example: $500,000 home in Orange County, homesteaded

• Purchase price: $500,000
• Less Homestead Exemption (first $25,000): −$25,000
• Taxable for school board: $475,000
• Less second $25,000 exemption (non-school): −$25,000
• Taxable for everything else: $450,000
• Approximate tax at 11 mills: ~$4,950–$5,100/year

Property tax rates by Central Florida county

Note: These are approximate effective rates on assessed value for unexempted properties. Actual rates vary by municipality, school year, and special district.

County	Typical Effective Rate	Notes
Orange County	1.0%–1.2%	Highest metro county; includes Municipal Service Benefit Units
Seminole County	0.9%–1.1%	Generally lower than Orange; SCPS school millage is significant
Osceola County	1.0%–1.3%	Varies by municipality (Kissimmee city vs. unincorporated)
Lake County	0.8%–1.1%	Generally lower; less urban density
Polk County	0.9%–1.2%	Varies significantly by city (Lakeland vs. Davenport vs. Winter Haven)

These rates do NOT include CDD assessments — a critical distinction for buyers evaluating master-planned communities.

The Homestead Exemption: how to reduce your bill

Florida's Homestead Exemption reduces the assessed value of your primary residence by $50,000 for property tax purposes. On a home with a 1.1% effective rate, that's approximately $550/year in direct savings.

Filing requirements:

• File by March 1 of the year you want the exemption applied
• Apply at your county's property appraiser website (online in most counties)
• Proof of Florida driver's license or ID at the property address
• Social Security number
• Property's folio/parcel number

County filing websites:

• Orange County: ocpafl.org
• Seminole County: scpafl.org
• Osceola County: property.osceolafl.org
• Lake County: lakecopropappr.com
• Polk County: polkpa.org

Miss the March 1 deadline and you wait a full year. File immediately after closing — calendar it the day you get your keys.

Save Our Homes: the long-term value multiplier

After your first year of Homestead Exemption, Florida's Save Our Homes (SOH) cap limits annual increases in your assessed value to 3% or CPI, whichever is lower.

This matters enormously over time:

Year	Market Value	Without SOH	With SOH (3% cap)	Annual Tax Savings*
2026	$500,000	$500,000	$500,000	$0
2031	$650,000	$650,000	$579,000	~$770
2036	$800,000	$800,000	$671,000	~$1,420
2041	$1,000,000	$1,000,000	$779,000	~$2,430

*Approximate savings at 1.1% effective rate; assumes sustained 5%/year market appreciation

Long-term Florida homeowners in appreciating markets accumulate significant SOH savings that translate into thousands of dollars in annual tax reduction compared to new buyers at current market value.

Portability: taking your savings to the next home

When you sell a homesteaded Florida property and buy another, you can port your accumulated SOH savings to the new property — up to $500,000 in benefit.

This means if your previous home had a $200,000 gap between market value and assessed value (from years of SOH accumulation), you can apply that benefit proportionally to your new home's assessed value from day one.

File for portability when you file for Homestead Exemption on your new property. The deadline is March 1 following your new purchase. If you're a long-term Florida homeowner selling a homesteaded property, portability analysis is one of the most valuable financial conversations to have before you close.

CDDs: the hidden property tax

Community Development Districts are special-purpose local government entities that finance infrastructure in master-planned communities through bond issuances. Residents repay these bonds through annual assessments that appear on the property tax bill.

CDDs are separate from HOA fees (though HOA fees are also often present). They're not optional — they come with the land.

Typical CDD amounts in Central Florida communities:

• Horizon West: $1,500–$4,500/year depending on phase vintage
• Lake Nona (Laureate Park, Randal Park): $2,000–$3,500/year
• Baldwin Park: $1,500–$3,000/year
• Celebration: $2,000–$4,000/year
• Champions Gate: $1,500–$2,500/year

For a $600,000 home with a 1.1% county tax rate + $3,000 CDD, your effective property tax burden is approximately $6,600 + $3,000 = $9,600/year — more than 1.6% of purchase price. Build this into your affordability model before falling in love with a floor plan.

What relocating buyers from other states should know

Buyers relocating from New York, New Jersey, California, or Connecticut to Florida frequently compare property taxes:

Florida vs. New Jersey (notoriously high): A $600,000 home in NJ might carry $15,000–$20,000/year in property taxes. Florida's equivalent is $6,000–$8,000/year (before CDD). Significant savings even without Florida's income tax advantage.

Florida vs. California: Comparable effective rates in most of California, but California's Prop 13 caps create similar SOH-like protection for long-term California homeowners. Relocating from California mid-tenure loses that accumulated protection; the SOH benefit rebuilds over years of Florida homeownership.

Florida vs. Texas: Both are no-income-tax states. Texas property taxes are significantly higher than Florida's — effective rates of 1.5%–2.5% are common in Texas versus Florida's 0.9%–1.3%.

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Ryan Solberg helps buyers understand the full carrying cost of Florida homeownership — not just mortgage, but property taxes, CDD fees, HOA, and insurance as a combined monthly picture. Connect for a full cost comparison before you commit to any specific community.