Florida Homestead Exemption and Property Taxes for Home Buyers

Who Qualifies and When to Apply

Eligibility is measured on January 1. The Orange County Property Appraiser lists the requirements as recorded title as of that date, living on the property, and permanent Florida residency, and Osceola County says the home must be occupied as your permanent residence on January 1. The filing deadline is March 1 in Orange and Osceola counties. Polk County listed March 2 for 2026, so confirm the exact date for the year you are buying with your county property appraiser.

Because eligibility is measured on January 1, a home you buy later in the year generally qualifies starting the next January 1. Ask the property appraiser about your closing date. Orange County says an approved exemption renews automatically each year unless the title changes, and a new owner has to file a new application.

How Florida Property Tax Is Calculated

Value-based property tax is your taxable value multiplied by the millage rate that each taxing authority sets, and one mill is $1 for every $1,000 of taxable value. Taxable value is the assessed value minus exemptions such as homestead. Rates differ by address, because each home sits in a particular combination of county, city, school, and special taxing districts, so the county estimator, which applies the rates for the specific property, is more reliable than a rule of thumb.

What the Exemption Saves

In Orange County's flyer, revised in February 2023, the first $25,000 of the exemption applies to all taxes, and an additional exemption applies to assessed value above $50,000 but not to school taxes. Osceola County's property appraiser lists the exemption at up to $51,411 for tax year 2026, and the Orange flyer is dated, so use your county's current figure. Your county's tax estimator shows what the exemption is worth on a specific home.

Save Our Homes: The Assessment Cap

According to Osceola County's property appraiser, annual increases in the assessed value of a homesteaded property are limited to the lower of 3 percent or the change in the consumer price index, and the Orange County Tax Collector describes the same cap. Over years of ownership that can leave the assessed value well below the market value.

Property without homestead, such as a second home or rental, is not covered by that cap. Osceola County says non-homestead property is limited to a 10 percent annual increase, excluding school board assessments.

Why Your First Tax Bill Can Jump

When a homesteaded property sells, its assessed value is raised to market value. The Orange County Tax Collector says the cap resets the next year. In practice, that means the buyer does not inherit the seller's capped value. Ask the property appraiser when the change applies to your closing date.

That is why the seller's tax bill is a poor guide to yours. Use the county's tax estimator with your purchase price, and remember that an estimate is not a bill. Polk County's property appraiser, for example, describes its tool as an unofficial estimated range.

Portability: Moving Your Savings to a New Home

If you already have a Florida homestead, you may be able to transfer up to $500,000 of your accumulated Save Our Homes savings to a new Florida homestead. Orange County's property appraiser says you must have had homestead on January 1 of one of the three preceding years, and you apply on Form DR-501T at the same time as your new homestead application. Orange County describes it as a one-time credit applied to the new home's assessment, and the exemption itself does not transfer. Its FAQ adds that both spouses must be on the new deed, or the other spouse must file a separate form.

Orange County gives this example. If your previous home had a market value of $300,000 and an assessed value of $200,000, the portable savings are $100,000. On a new $500,000 home, that produces a $400,000 assessed value, and $375,000 in taxable value after a $25,000 exemption. That example applies only the first $25,000 exemption, so the additional non-school exemption would lower the non-school taxable value further.

What Homestead Does Not Cover

The exemption applies to a permanent residence, so a second home or investment property does not qualify, and an investor should budget with the non-homestead assessment cap described above.

It also lowers only value-based taxes. The Orange County Tax Collector notes that non-ad valorem assessments, such as streetlights, sewage, and road improvements, are levied per unit rather than on your home's value, which is why they are billed separately. Many newer Central Florida communities also have a community development district (CDD) assessment, which our CDD guide explains.

When Your Florida Property Tax Bill Arrives

The Orange County Tax Collector says tax bills are mailed by November 1, and that early-payment discounts run 4 percent in November, 3 percent in December, 2 percent in January, and 1 percent in February, with full payment due by March 31. Your county may differ, so check its tax collector.

Orange County's property appraiser says the Notice of Proposed Property Taxes, known as the TRIM notice, is mailed in August, before the bill. If you use a mortgage escrow account, your lender typically pays the bill, but you still need to know the amount to budget for it.

Amendment 3: The 2026 Ballot Proposal

Florida voters are scheduled to decide a proposed constitutional amendment on November 3, 2026, and Ballotpedia and Orange County's government site both note that it needs 60 percent approval to pass. Do not budget as though it has passed. Ballotpedia reports that, if approved, it would take effect January 1, 2027. The non-school homestead exemption would rise to $150,000 in 2027 and $250,000 in 2028, with inflation indexing starting in 2029, school taxes would keep the current exemption, and the cap on non-homestead assessment increases would fall from 10 percent to 5 percent, excluding school taxes.

Several sources also report that people who become Florida residents after 2026 would wait five years for the higher exemption. The sources describe that provision in slightly different words, so if you are moving to Florida, read the ballot language and ask the property appraiser how it would apply to you. This section reflects reporting as of September 24, 2026, and the outcome is not decided.

How to Estimate Taxes Before You Buy

Run the county estimator for each home you are considering. Polk County's estimator asks for the purchase price or market value, the parcel ID, whether the home is homesteaded, and an optional portability amount. Osceola County links its own estimator from its property appraiser's frequently asked questions page, and Orange County has one as well. Add any CDD assessment and the HOA dues to the result, since they are billed separately. We run the numbers with you for the homes on your shortlist.