When reviewing a home in Florida, buyers often look at the seller’s current property-tax bill and use that number when estimating future ownership costs.
That can be misleading.
A seller may have owned the property for years and benefited from Florida’s Save Our Homes assessment protections. When ownership changes, the property’s assessed value may reset, which can result in a different tax bill for the new owner.
Why Can the Tax Bill Change?
Florida Homestead protections can limit how quickly the assessed value of a qualifying primary residence increases over time.
Once established, the Save Our Homes assessment cap generally limits annual increases to the lesser of 3% or the applicable CPI change.
That means a longtime owner may be paying taxes based on an assessed value that is significantly different from the property’s current market value.
When the property changes ownership, that accumulated benefit does not simply transfer to the buyer.
Estimate Your Own Costs
Before purchasing, evaluate property taxes based on your expected ownership situation, not only the seller’s current bill.
The Palm Beach County Property Appraiser provides tools and information that can help buyers better understand potential property-tax changes.
Flight School Takeaway
Do not assume the seller’s tax bill will become yours.
Property taxes should be part of the complete affordability picture before you purchase.
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