Property taxes are one of the biggest ongoing costs of owning a home in Palm Beach County — and one of the most misunderstood. Between the homestead exemption, the Save Our Homes cap, and portability, Florida homeowners have valuable protections, but you have to know how to use them. This guide explains the essentials in plain English. (For your specific situation, always confirm with the Palm Beach County Property Appraiser and a tax professional.)
How property taxes work in Florida
Your annual tax bill is based on your property’s assessed value multiplied by the combined millage rate set by the county, your city, the school district, and other taxing authorities. Florida has no state income tax, but property taxes fund most local services, so they matter to your monthly budget. Because millage rates and assessments change each year and vary by city, use the Property Appraiser’s tools for an exact estimate on any address.
The homestead exemption
If the home is your permanent primary residence as of January 1, you can apply for Florida’s homestead exemption, which reduces your taxable value. There is a standard exemption on the first portion of assessed value, plus an additional exemption that applies to non-school taxes. You must file the application — it is not automatic — and the deadline is typically March 1. Additional exemptions may be available for seniors, veterans, individuals with disabilities, and surviving spouses.
Save Our Homes: the assessment cap
Once your property has the homestead exemption, the Save Our Homes benefit caps how much your assessed value can rise each year — limited to 3% or the change in the Consumer Price Index, whichever is lower. In a fast-appreciating market, this cap can save homesteaded owners a significant amount over time, because your assessed value grows more slowly than market value.
Portability: don’t leave savings behind
When you sell a homesteaded home and buy another in Florida, portability lets you transfer some or all of your accumulated Save Our Homes savings to your new home — within limits and deadlines. This is one of the most overlooked ways to keep your tax bill down when moving within the state, so mention it early when planning a move.
What this means when you buy
Two things buyers should understand: first, the seller’s current tax bill is not what you’ll pay — your assessment typically resets closer to your purchase price after the sale. Second, budget for the reset so you’re not surprised in year one. We help buyers estimate a realistic post-purchase tax figure as part of the process. Also see our Florida closing costs guide.
Frequently asked questions
When is the homestead exemption deadline?
Applications are generally due by March 1 for the tax year, and the home must be your permanent residence as of January 1. Confirm current dates with the Property Appraiser.
Why did my taxes jump after buying?
The prior owner’s Save Our Homes cap doesn’t transfer to you. After purchase, the assessed value typically resets, which can raise the bill.
Can I transfer my tax savings to a new home?
Often yes, through portability — within state limits and timing rules. Plan for it before you sell.
Questions about buying in Palm Beach County?
Ernst Cenege and the Cenege Real Estate Group help buyers understand the full cost of ownership before they commit. Contact us or call (561) 618-9984.
