Florida has no state income tax, and property taxes here are moderate, but there are a few rules that make a real difference to what you pay. If you understand homestead, Save Our Homes, and portability, you can save thousands. Here is the plain version.
How Florida property tax works
Your tax bill is the property's assessed value times the local millage rate, minus any exemptions. Millage rates are set by the county, school district, and other local authorities. Collier County's effective rate is relatively low compared to much of the country, which is part of what draws buyers to Naples.
The homestead exemption
If the home is your permanent Florida residence, you can claim the homestead exemption, which removes up to fifty thousand dollars of assessed value from most of your tax bill. It is a straightforward filing with the county property appraiser, and it also unlocks the two protections below.
Save Our Homes: the 3 percent cap
This is the big one. Once your home is homesteaded, Save Our Homes caps how much its assessed value can rise each year at three percent, or the change in the consumer price index, whichever is lower. In a market like Naples that can appreciate quickly, that cap keeps your taxes from ballooning even as the home's market value climbs.
Portability: take your savings with you
If you sell one Florida homestead and buy another, portability lets you transfer up to five hundred thousand dollars of your accumulated Save Our Homes benefit to the new home. That can dramatically lower the tax bill on your next place, so it is worth planning for before you move.
What this means when you buy
Here is the catch buyers miss: when a home sells, its assessed value usually resets toward market value for the new owner, so your tax bill can be higher than the previous owner's. Always look at what the taxes will be for you, not what the seller has been paying. A good agent will estimate this for you up front.
Frequently asked questions
Save Our Homes is a constitutional cap that limits the annual increase in the assessed value of a homesteaded property to three percent or the change in the consumer price index, whichever is lower. It keeps property taxes from rising as fast as market value.
The homestead exemption removes up to fifty thousand dollars of assessed value from most of your property tax bill on your permanent Florida residence. It also unlocks the Save Our Homes cap and portability.
Often yes. When a home changes hands, its assessed value typically resets toward market value for the new owner, so your bill can be higher than what the seller paid. Always estimate the taxes based on your purchase, not the current owner's bill.
Portability lets you transfer up to five hundred thousand dollars of your accumulated Save Our Homes savings from a Florida home you sell to a new Florida homestead, lowering the assessed value and taxes on your next home.