Property Taxes in Florida: What Every Buyer Should Know
Florida has no state income tax — but it does have annual property taxes. Understanding how they are calculated, what exemptions exist, and how they affect investment properties is essential for every buyer.
Financing & Taxes · Sea to Sky Realty
How Property Tax Is Calculated in Florida
Florida property taxes are calculated based on the assessed value of the property, multiplied by the millage rate set by the local taxing authorities. One mill equals $1 of tax per $1,000 of assessed value.
In Manatee County (Bradenton), the combined millage rate for most areas runs approximately 15–18 mills, depending on location and applicable taxing districts. Sarasota County rates are similar.
Assessed Value vs. Market Value
In Florida, the assessed value of a property for tax purposes is not always equal to its market value. For homesteaded properties (primary residences), the Save Our Homes amendment caps annual assessment increases at 3% or the rate of inflation — whichever is lower. This can result in assessed values significantly below market value for long-term owners.
When you purchase a property, the assessed value resets to market value in the following tax year. The previous owner’s low assessed value does not transfer to you. Always verify the likely post-purchase tax amount — not the current owner’s bill.
The Homestead Exemption
Florida residents who use a property as their primary residence can apply for the Homestead Exemption, which reduces the assessed value by up to $50,000 for tax purposes. The application deadline is March 1 of the tax year.
Foreign nationals and non-residents are generally not eligible for the Homestead Exemption, as it requires Florida residency and intent to maintain the property as a primary home. Investment properties and vacation homes do not qualify.
CDD Fees
Many newer planned communities in Florida carry a Community Development District (CDD) fee. This appears as a separate line item on the annual property tax bill — it is not part of the HOA fee. CDD fees fund infrastructure such as roads, utilities, and amenity construction built during development.
CDD fees can range from a few hundred to several thousand dollars per year and typically remain in place for 20–30 years until the bonds are retired. Always check whether a property carries a CDD before making an offer.
Property Taxes for Investment Properties
For non-homesteaded investment properties and vacation rentals, the assessed value is not capped and will track market value more closely over time. Rising property values in the Bradenton and Sarasota markets have led to meaningful property tax increases in recent years — factor this into your investment return projections.
How We Help
For every buyer client, Sea to Sky Realty provides an estimated post-purchase property tax figure based on current market value — not the seller’s current bill. We also flag any CDD obligations upfront. Contact us at info@bradentonbroker.com for a full cost-of-ownership analysis on any property.
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Property tax, HOA fees, insurance, and CDD — we break down the real annual cost before you make an offer.