Understanding Property Taxes & Homeowner’s Insurance 

Property taxes are set by the county and are based on the home’s assessed value, not necessarily the price paid.

• Purchasing a home typically resets the assessed value to reflect current market conditions

• This reset can cause property taxes to increase or decrease after the sale

• Applying for the homestead exemption may reduce your tax bill if the home is your primary residence

• Filing for homestead soon after closing is important to:

  • Lower the taxable value

  • Cap future annual increases under Florida law

Even with homestead, property taxes can change from year to year due to:

• Changes in local tax (millage) rates

• School or municipal budgets

• Voter-approved levies

Most lenders require homeowner’s insurance to protect the property securing the loan.

• Insurance costs vary based on:

  • Location

  • Home age and construction

  • Roof type and age

  • Flood or wind exposure

• Coverage limits and deductibles directly affect both cost and protection

• Certain home improvements may qualify for insurance discounts, such as:

  • New or impact-rated roofs

  • Wind mitigation features

  • Updated electrical or plumbing systems

In addition to standard property taxes, some homes also have non-ad valorem assessments, which are not based on property value.

• These charges fund specific services or improvements, such as:

  • Solid waste collection

  • Stormwater management

  • Street lighting

  • Fire or special district services

• Non-ad valorem assessments do not receive homestead exemptions

• They are typically fixed amounts and can change if services or districts change

These charges appear on the property tax bill but are separate from value-based property taxes.

The homestead exemption is a Florida benefit that can reduce the taxable value of a primary residence. It may lower property taxes and helps limit how much assessed value can increase each year.

To qualify, the homeowner must:

• Own the property

• Use it as their primary residence

• Live in the home as of January 1 of the tax year

• Be a Florida resident

Second homes, rentals, and investment properties do not qualify.

Homestead can reduce the taxable value by up to $50,000, depending on the tax authority. The actual dollar savings varies based on local tax rates.

Yes. Once homestead is in place, Florida’s Save Our Homes cap limits assessed value increases to the lesser of 3% per year or the rate of inflation, even if market values rise faster. 

No. Homestead applies only to ad valorem (value-based) taxes.
It does not reduce:

• Non-ad valorem assessments

• Special district fees

• Trash, stormwater, or fire assessments

You should apply as soon as possible after purchasing, typically between:

• January 1 and March 1 following the year of purchase
  
  

Applying early helps ensure the exemption is applied correctly and on time.

Homestead is not automatic. The homeowner must apply with the county property appraiser. 

No. Buying a home usually resets the assessed value, which can change the tax amount. Homestead exemption may help lower it.

Sometimes. Many buyers pay taxes and insurance through an escrow account, but they are still separate costs from the loan itself. The first year of insurance is paid upfront as part of closing costs.

Yes. Both can increase or decrease based on assessments, exemptions, coverage, and market conditions.