Florida Property Taxes Explained: How They’re Calculated in 2025

Florida is well known for having no state income tax, making it attractive to retirees, homeowners, and people relocating from other states. However, Florida homeowners still pay property taxes, which help fund schools, counties, cities, emergency services, water management districts, and other local services.

If you’re buying a home, relocating to Florida, or simply trying to understand your annual tax bill, it helps to know how Florida property taxes are calculated and which exemptions may reduce what you owe.

How Florida Property Taxes Are Calculated

Florida property taxes are based on three main factors:

• Your property’s assessed value.
• Any exemptions that reduce the taxable value.
• The local tax rates, often called millage rates, established by local taxing authorities.

Because each county, city, school district, and special district may adopt its own tax rate, two similar homes in different parts of Florida may have very different property tax bills.

Who Sets Florida Property Tax Rates?

Florida property taxes are assessed and collected locally. Depending on where a property is located, a tax bill may include taxes for:

• County government
• School district
• City government
• Water management district
• Special taxing districts

The combination of these local rates determines the total property tax rate for a specific property.

Assessed Value vs. Market Value

A home’s assessed value may not be the same as its current market value.

County property appraisers determine assessed values each year. Exemptions and assessment limitations, especially Florida’s Save Our Homes benefit, may reduce taxable value below market value.

This is why two neighboring homes with similar market values may have different property tax bills.

Florida Homestead Exemption

Florida homeowners who use their property as their permanent residence may qualify for the Florida Homestead Exemption.

This exemption can reduce the taxable value of a qualifying home and may lower annual property taxes. It also helps establish eligibility for Save Our Homes protection.

Save Our Homes Protection

Florida’s Save Our Homes program is one of the most valuable property tax benefits available to long-term homeowners.

For qualifying homestead properties, Save Our Homes generally limits annual increases in assessed value, even if market values rise more quickly. Over time, this assessment cap can create significant tax savings for homeowners who remain in the same home.

Property Taxes When Buying a Home

If you’re buying a home in Florida, be careful about relying on the seller’s current tax bill.

When a home changes ownership, the assessed value may be adjusted, and the previous owner’s exemptions or Save Our Homes benefit may not carry over to you. That means your future property tax bill may be higher than what the seller has been paying.