Rob Hartley
Founder, AppealDesk · February 26, 2026
How Much Can Property Taxes Increase in Florida? (2026 Guide)
Updated March 2026 · 8 min read
In Florida, property tax increases are capped at 3% or the Consumer Price Index (whichever is lower) for homesteaded properties, and 10% annually for non-homestead properties. These caps protect Florida homeowners from runaway assessment increases through the Save Our Homes amendment. But caps on assessed value don't cap your tax bill — and the gap between the two catches many homeowners off guard.
Quick Answer
- Homestead properties: 3% or CPI cap (whichever is lower) on assessed value
- Non-homestead properties: 10% annual cap on assessed value
- Tax rates: No cap — counties, cities, and school boards set rates independently
- Save Our Homes benefit: Can transfer up to $500,000 in savings when you move
- Recapture rule: Assessment jumps to full market value when sold
The 3% Homestead Cap (Save Our Homes)
Florida's Save Our Homes (SOH) amendment, passed in 1992 and codified in Article VII, Section 4 of the Florida Constitution, limits annual assessment increases on homestead property to 3% or the Consumer Price Index (CPI), whichever is lower. This creates a “capped value” that can be significantly lower than market value in hot real estate markets.
For example, if your home's assessed value was $300,000 last year and the CPI was 2.5%, your assessed value can only increase to $307,500 this year — even if similar homes are selling for $400,000. Over time, this gap compounds dramatically.
Save Our Homes in Action: 10-Year Example
A homeowner who bought at $250,000 in 2016 with 3% annual market appreciation:
- Market value (2026): ~$335,979
- SOH capped value (2026): ~$305,000 (growing at ~2% avg CPI)
- SOH benefit: ~$30,979 in untaxed value
- Annual tax savings: ~$310 at the statewide average effective rate of 0.86%
In areas with stronger appreciation (Miami, Tampa, Orlando), the SOH benefit can exceed $100,000+ in untaxed value after 10 years.
Non-Homestead Properties: The 10% Cap
Investment properties, vacation homes, and commercial properties face a more generous 10% annual cap on assessment increases. This applies to all non-homestead properties regardless of value. While 10% per year sounds generous, it provides meaningful protection in years when market values spike by 20-30%.
What the Caps Don't Protect Against
The most common misconception is that a 3% assessment cap means a 3% tax bill cap. That's not how it works. Your tax bill = assessed value × millage rate. The caps only limit one side of that equation.
- Millage rate increases: Your county commission, city council, school board, and special districts each set their own millage rates independently. If they raise rates, your bill goes up even with a capped assessment.
- New special assessments: Fire districts, water management districts, and community development districts (CDDs) can add assessments that aren't covered by SOH.
- Loss of exemptions: If you lose your homestead exemption (e.g., renting the property, moving out), the assessed value jumps to market value immediately.
- New construction: Adding a pool, expanding the house, or enclosing a patio adds value at full market rate on top of the capped value.
Portability: Taking Your Savings With You
Florida allows homeowners to transfer up to $500,000 of their Save Our Homes benefit to a new home anywhere in the state. This “portability” helps long-time residents afford to move without losing years of accumulated tax savings.
How Portability Math Works
If your old home had a market value of $400,000 and a capped value of $300,000, your SOH benefit is $100,000. When you buy a new home:
- Same or higher value: The full $100,000 benefit transfers. A $500,000 new home starts with an assessed value of $400,000.
- Lower value: The benefit is prorated. A $300,000 new home gets 75% of the benefit ($75,000), starting at $225,000 assessed.
Portability Deadline Warning
You must establish a new homestead within 3 tax years of abandoning the old one. Miss this window and the SOH benefit is lost permanently. File the portability application (Form DR-501T) with your new county's property appraiser.
The Recapture Problem
When you sell your Florida home, the buyer faces “recapture” — the assessed value immediately jumps to full market value. For long-time owners with large SOH benefits, this can double or triple property taxes overnight for the new owner.
This is why newly purchased Florida homes frequently have overassessments. The county sets the new value at the purchase price, but if you bought in a hot market or overpaid in a bidding war, the assessed value may exceed actual market value. This is exactly where an appeal can save you money from year one.
Key Florida Deadlines
- File for homestead exemption by March 1st
- Appeal your assessment within 25 days of receiving your TRIM notice (typically August)
- Transfer portability within 3 tax years of selling your previous home
- File portability application (DR-501T) by March 1st of the year you want the transfer
Florida Tax Increase Math: Real Numbers
Florida's average effective property tax rate is 0.86%, with a median home value of $292,200 and an average annual tax bill of $2,513. Here's how different scenarios play out:
| Scenario | Assessment Change | Tax Bill Impact |
|---|---|---|
| Homestead, CPI at 2.5% | +2.5% ($7,305) | +~$63/year |
| Homestead, CPI at 3%+ | +3% max ($8,766) | +~$75/year |
| Non-homestead, hot market | +10% max ($29,220) | +~$251/year |
| New purchase (recapture) | Full market value reset | Often 2-3x previous owner's bill |
County-by-County: Where Taxes Are Rising Fastest
Florida's 67 counties have widely varying tax rates and appreciation patterns. The counties seeing the fastest increases in 2025-2026:
- Miami-Dade County: Rapid condo and residential appreciation. Effective rate ~0.91%. New buyers face severe recapture.
- Hillsborough County (Tampa): Among the highest rates in the state at ~1.01%. Strong market growth means large SOH benefits for existing owners but big jumps for new buyers.
- Orange County (Orlando): Tourism-driven growth. Investment properties hit the 10% non-homestead cap regularly.
- Palm Beach County: Luxury market with high base values. Even small percentage increases translate to large dollar amounts.
- Duval County (Jacksonville): Fastest-growing metro in the state. Assessment increases accelerating.
Should You Appeal in Florida?
Even with Florida's caps, appealing can still save money — and in some cases it's the most effective strategy because a successful appeal lowers your base assessment. The cap then applies to this lower starting point, compounding savings year after year.
Appeals are especially valuable if you:
- Recently purchased: Your assessment resets to market value. If comparable sales show you overpaid or the market has softened, an appeal can lower your new baseline.
- Have property condition issues: Structural problems, flood damage, or deferred maintenance that the assessor hasn't accounted for.
- Received a TRIM notice with a jump: Even homesteaded properties can see large increases if the county corrected an error or reclassified the property.
The Compounding Effect of a Florida Appeal
A $20,000 reduction in assessed value saves ~$172/year at Florida's average rate. But because the SOH cap applies to the reduced value going forward, the savings compound. Over 10 years, that single appeal could save $2,000+ as the capped value grows from a lower base.
Check If Your Florida Property Is Overassessed
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Frequently Asked Questions
Can my Florida property taxes increase more than 3%?▼
Yes. The 3% cap only applies to your assessed value, not your tax bill. If millage rates increase, your bill can rise by more than 3%. Additionally, the cap doesn't apply to non-homestead properties (which have a 10% cap) or to new construction added to your property.
What happens to Save Our Homes when I sell?▼
When you sell, the buyer's assessment resets to the purchase price (full market value). Your accumulated SOH benefit disappears for that property. However, you can transfer up to $500,000 of that benefit to a new Florida home within 3 tax years using portability.
How do I file a TRIM appeal in Florida?▼
You have 25 days from receiving your TRIM (Truth in Millage) notice to file a petition with the Value Adjustment Board (VAB). The TRIM notice arrives in August. File with your county's VAB office and present comparable sales evidence showing your assessed value exceeds market value.
Is Florida's Save Our Homes better than Texas's 10% cap?▼
For long-term owners, Florida's 3% cap is more protective than Texas's 10% cap. However, Florida's system creates a bigger “lock-in” effect — moving resets your assessment, which discourages selling. Texas allows no portability. Florida's portability partially solves this.
Last updated: March 2026. Sources: Florida Department of Revenue, Florida Statutes Chapter 193, Florida Constitution Article VII Section 4.