Understanding Property Taxes

Florida has one of the nation’s most efficient tax systems—what we call the “Florida Formula.” It means lower taxes, less regulation, and local tax dollars spent directly in our communities. 

What is the Florida Formula?

  • Low Taxes
  • Limited Regulation
  • Voter-Approved Protection
  • Local Accountability 

Understanding Municipal Property Taxes

Why It Matters

Property taxes make it possible for cities to provide the services we all rely on — from police and fire response to trash pickup, road repairs, and more. Best of all, that money stays local, so residents have a real say in how it’s spent. It’s the Florida way, and it works.

  • What is a millage rate? Millage rate = the city tax charged per $1,000 of your property’s taxable value. At a 5.2 rate, you pay $5.20 for every $1,000 of assessed value.
  • Who sets it? Your local city commission makes these decisions through public hearings and an open budget process. Choices are made right here at home, not by distant officials.
  • What affects your property tax bill?  
    • Assessed Value – Set by the county based on market value
    • Exemptions – Reduce your taxable value
    • Assessment Caps – Limit yearly growth for homesteads
    • Millage Rate – Annual tax rate set locally
  • What does it pay for? City property taxes fund the services that keep our community safe, clean, and livable, including:
    • Public safety
    • Street and sidewalk maintenance
    • Waste and water systems
    • Parks and public spaces
    • Neighborhood services
  • Can I lower my property tax bill? 
    • Apply for exemptions, including homestead.
    • Verify your assessed value and appeal if needed.
    • Speak up at public budget hearings.

Public Safety

Police, fire, and emergency response — makes up over half of Florida city budgets and relies heavily on local property taxes. Costs for vehicles, fuel, and training keep climbing, especially since COVID, but most cities have kept taxes steady and services strong. Reducing property taxes too much would make it harder to fund essential services without raising other fees. Public safety works best when funding stays local, accountable, and transparent.

Understanding Florida’s “Save Our Homes” Amendment

Florida’s “Save Our Homes” amendment is a constitutional provision designed to limit annual increases in the assessed value of homesteaded properties. It caps those increases at 3% per year or the Consumer Price Index (CPI), whichever is lower.

In practice, this means that even if real estate market values rise significantly, a qualifying homeowner’s taxable value — the amount used to calculate property taxes — can only increase by a limited percentage each year.

This creates a distinction between:

  • Just value — the market-based value of a property.
  • Taxable value — the value actually used to determine a homeowner’s property tax bill.

Because of this cap, long-time Florida homeowners may pay property taxes based on an amount lower than their home’s current market value.

Over the past several years, while property values have risen sharply across Florida, property tax bills for homesteaded properties have grown more gradually — generally capped at around 3% annually. In contrast, some other housing-related costs, such as home insurance premiums, have increased much faster — with Florida’s average premiums more than doubling (+102%) over the last three years.