Will my property taxes go up after I buy?

Usually, if the seller had owned the property for some years. The assessed value resets to market value on January 1 after the sale, so estimate the tax from your purchase price rather than from the current bill.

Can I get a homestead exemption on a rental property?

No. The homestead exemption is for a Florida resident's permanent home. Renting out a homesteaded property can cost you the exemption, so ask the county property appraiser before you do.

Does Florida tax rental income?

Florida has no personal state income tax. Federal income tax applies to rental income, and short stays are subject to Florida sales and tourist taxes. Your tax adviser confirms how the rules apply to you.

Property Taxes on an Investment Property in Florida

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Published October 4, 2026

The Short Answer

Do not use the seller's tax bill. Florida reassesses a property at market value on January 1 after it sells, so a buyer's taxes are based on roughly the purchase price, not on the capped value the previous owner enjoyed. An investment property gets no homestead exemption, and its assessed value can then rise by up to 10 percent a year for most taxes.

Why the Seller's Bill Misleads

A long-time owner's assessed value may sit far below market value, because Florida caps annual increases: 3 percent or inflation, whichever is lower, on a homestead, and 10 percent on other property. A sale removes the cap. On January 1 of the following year the county property appraiser sets the assessed value at market value, and the tax bill follows. The difference can be thousands of dollars a year, and it belongs in your numbers before you offer.

The 10 Percent Cap

After that reset, the assessed value of a non-homestead property, such as a rental or a second home, cannot rise by more than 10 percent a year. The cap does not apply to school district taxes, which follow market value, so the bill can rise faster than the cap suggests in a rising market.

Estimating Your Bill

Multiply the expected assessed value, close to your purchase price, by the total millage rate for the property's taxing district, then add the non-ad valorem assessments listed on the current bill, such as fire, solid waste and drainage. Each county property appraiser publishes the millage rates, and most offer a tax estimator for buyers. One mill is $1 of tax per $1,000 of taxable value.

When Taxes Are Billed and Paid

Florida property taxes are paid in arrears. Bills go out around November 1 for that calendar year, with a 4 percent discount for paying in November that steps down each month to nothing in March, and they become delinquent on April 1. At closing the seller credits the buyer for the part of the year the seller owned the property, and the buyer pays the full bill when it arrives.

Challenging an Assessment

Each August the property appraiser mails a notice of proposed property taxes showing the assessed value. An owner who disagrees can talk to the appraiser's office and can file a petition with the county Value Adjustment Board, generally within 25 days of that notice being mailed. Recent comparable sales and, for a rental, its income and expenses are the evidence.

Review a Property With a Broker

Every property is its own set of numbers. Send us the address or the strategy and a BreakThru broker will go through the rents, the costs and the rules that apply to it. Request an investor strategy call · South Florida Investor Market Index