• Florida property taxes are set locally by counties, cities, school districts, and special taxing districts.
• Your bill is based on taxable value multiplied by the local millage rate.
• The seller’s current tax bill may be much lower than yours because of Florida’s Save Our Homes cap.
• If the home will be your primary residence, you may qualify for the Florida homestead exemption.
• Homestead is not automatic. You must file for it, and the standard deadline is March 1.
• A proposed Florida constitutional amendment on the November 2026 ballot could expand the homestead exemption for non-school taxes if approved by voters.

Why the Seller’s Property Tax Bill Is Not Your Property Tax Bill

One of the biggest surprises for Northeast Florida buyers is that the tax amount shown online often reflects what the current owner pays, not what the next buyer will pay.

That matters because Florida has a property tax protection called the Save Our Homes cap. After a property receives a homestead exemption, its assessed value cannot increase by more than 3% per year or the change in the Consumer Price Index, whichever is lower.

That is a valuable long-term benefit for homeowners. But it can be confusing for buyers.

For example, a seller may have purchased a Palm Coast home ten years ago for $220,000. Over time, the market value may have increased to $360,000, but the assessed value for tax purposes may still be much lower because of the Save Our Homes cap.

When you buy that same home, the cap generally resets. Your assessed value is likely to move closer to the purchase price. That means you may be taxed on a higher value than the seller was.

This is why buyers should avoid using the seller’s tax bill as their estimate.

A lender, portal, or online payment calculator may show a monthly estimate using the current owner’s tax bill. That can make the payment look lower than it will actually be after reassessment.

How Florida Property Taxes Are Calculated

Florida property taxes are based on a few key numbers:

• Market value: What the property is estimated to be worth.
• Assessed value: The value used by the property appraiser before exemptions.
• Taxable value: The assessed value after exemptions.
• Millage rate: The tax rate applied to taxable value. One mill equals $1 per $1,000 of taxable value.
• Non-ad valorem assessments: Charges that are not based on property value, such as CDD fees, solid waste fees, lighting districts, or other local assessments.

A simple estimate looks like this:

• Estimated purchase price: $340,000
• Less current homestead exemption: $50,000
• Estimated taxable value: $290,000
• Example millage rate: 10.5 mills
• Estimated annual tax: $290,000 × 0.0105 = $3,045
• Estimated monthly amount: About $254 per month

This is not a final tax bill, but it is usually more realistic than relying on the seller’s existing tax history.

What the Florida Homestead Exemption Saves You

If the home you buy will be your primary residence, you may qualify for Florida’s homestead exemption.

The current standard homestead exemption can reduce taxable value by up to $50,000. The first $25,000 applies to all property taxes, including school taxes. The additional exemption of up to $25,000 applies to non-school taxes.

For many buyers in Flagler County and St. Johns County, that exemption may save several hundred dollars per year. The exact number depends on the property, the county, the taxing district, the millage rate, and any additional assessments.

The homestead exemption also matters because it activates Save Our Homes protection. Once you qualify, future increases in assessed value are limited to 3% or the rate of inflation, whichever is lower.

That benefit can become more valuable the longer you own the home.

Palm Coast vs. St. Augustine Property Taxes

Buyers often compare Palm Coast in Flagler County with St. Augustine in St. Johns County.

The difference is not just the millage rate. It is also the purchase price.

Palm Coast generally has lower home prices than many St. Augustine-area neighborhoods. So even if the tax rate is slightly different, the actual dollar amount may still be lower in Palm Coast because the taxable value starts from a lower purchase price.

A rough example:

A $300,000 Palm Coast home with homestead may land around the low-to-mid $2,000s annually in property taxes, depending on the exact location and assessments.

A comparable St. Augustine-area home may cost closer to $450,000 and could land in the low-to-mid $3,000s annually with homestead, depending on the neighborhood, millage rate, and any non-ad valorem assessments.

That does not mean one county is automatically better than the other. St. Johns County may offer features that matter to certain buyers, including highly regarded school zones, specific communities, or proximity to St. Augustine. Flagler County may offer more affordability, newer homes, or more space for the budget.

The right comparison is not just tax rate versus tax rate. It is total monthly cost.

What Buyers Should Know About the Proposed 2026 Florida Property Tax Amendment

In November 2026, Florida voters are expected to consider a proposed constitutional amendment that would expand the homestead exemption for non-school property taxes.

Based on the current proposal, the exemption would increase to $150,000 in 2027 and $250,000 in 2028 for the non-school portion of property taxes, if approved by voters.

That distinction is important.

This proposal would not eliminate every part of a property tax bill. School board taxes and other items may still apply, and non-ad valorem assessments such as CDD or solid waste fees may not be reduced the same way.

The measure also requires at least 60% voter approval because it would amend the Florida Constitution.

For buyers, this is worth watching, but it should not be treated as guaranteed savings. It is a proposed amendment until voters decide.

How to Estimate Your Real Property Tax Bill Before Making an Offer

Before making an offer on a home in Palm Coast, St. Augustine, or anywhere in Northeast Florida, run the numbers this way:

1. Start with the expected purchase price.
2. Subtract the homestead exemption if the home will be your primary residence.
3. Look up the local millage rate through the county property appraiser.
4. Multiply taxable value by the millage rate.
5. Add any non-ad valorem assessments.
6. Divide the annual estimate by 12 to understand the monthly impact.

This step matters because a difference of $800 to $1,200 per year is not unusual when the seller’s capped tax bill resets after a sale. That can add $65 to $100 per month to your payment.

For a buyer working within a tight monthly budget, that number matters.

Do Not Miss the March 1 Homestead Deadline

Homestead exemption does not automatically apply when you close.

You must file for it.

The standard filing deadline is March 1 of the year for which you are seeking the exemption.

So if you close on a home in October 2026, you should plan to file by March 1, 2027, for the exemption to apply to your 2027 tax year.

Missing that deadline can cost you real money.

You will typically need proof that the home is your primary residence. That may include a Florida driver’s license with the new address, voter registration, vehicle registration, utility documentation, or other residency evidence requested by the property appraiser.

Set a reminder as soon as you close.

What About Portability?

If you already own a homesteaded property in Florida and you are moving to another Florida homestead, you may be able to transfer some or all of your Save Our Homes benefit through portability.

Portability allows a homeowner to transfer the difference between market value and assessed value from one Florida homestead to another, subject to state rules and limits.

This can be especially valuable for long-time Florida homeowners whose assessed value is far below current market value.

If you are selling one Florida homestead and buying another, portability should be reviewed before you close. It can affect your next property tax bill and may reduce your long-term cost of ownership.

FAQ

Why are Florida property taxes higher after buying a home?

Florida property taxes may be higher after buying because the seller’s assessed value may have been capped for years under Save Our Homes. When the property sells, the assessed value generally resets closer to market value, which can increase the next owner’s tax bill.

Is the Florida homestead exemption automatic?

No. The Florida homestead exemption is not automatic. You must apply through the county property appraiser, and the standard filing deadline is March 1.

Does the proposed 2026 amendment eliminate all property taxes?

No. Based on the current proposal, the expanded exemption would apply to non-school levies, not school board taxes. It also must be approved by at least 60% of Florida voters before taking effect.

Should I use Zillow’s tax estimate when budgeting?

No. Online portals often show the seller’s current tax bill, which may be based on a capped assessed value. Buyers should estimate taxes using the purchase price, local millage rate, exemptions, and any non-ad valorem assessments.

Final Thoughts

Florida’s property tax system has more moving parts than many buyers expect, especially if you are relocating from another state.

But once you understand how the system works, you can avoid one of the most common payment surprises after closing.

The key is simple: do not budget from the seller’s tax bill. Estimate your taxes based on your expected purchase price, your homestead eligibility, the local millage rate, and any property-specific assessments.

If you are buying in Palm Coast, St. Augustine, Flagler County, or St. Johns County and want help estimating the tax bill on a specific home, email Kim Devlin at [email protected] and ask for the one-page property tax worksheet used before making an offer.