Florida Property Tax Cap Limits Hikes to 3% Annually for Longtime Homeowners
Florida's Save Our Homes amendment limits annual property tax increases on homesteads to either 3% or the rate of inflation, whichever is lower. This cap helps longtime residents avoid steep tax hikes even as home values rise significantly over time. However, new buyers—especially those relocating from out-of-state—are reassessed at full market value starting January 1 following their purchase, which can lead to a sharp increase in property taxes. For example, a $650,000 Sarasota home might see its tax bill jump from around $3,200 under the previous owner to approximately $9,800 for new buyers. Florida's lack of income tax is often cited as an attraction by retirees and out-of-state buyers; however, rising property taxes and insurance costs can offset these savings. The Save Our Homes differential—the difference between market value and assessed value—belongs solely to the current owner and cannot be transferred or ported from other states. This means that new owners in Florida start with a clean slate for tax assessments.
Topics: Florida legislation homeownership costs property tax real estate market