Palm Beach County Property Taxes for Luxury Buyers
How homestead, Save Our Homes, portability, TRIM, and the reset effect shape first-year and long-term carrying costs for $5M+ estates in Palm Beach County.
The Big Idea in Plain English
Florida property taxes are simple once you know the three levers that matter: (1) what your home is worth for tax purposes (your assessed value), (2) the millage rate (the stack of rates from the county, schools, and your town), and (3) caps and exemptions (homestead and Save Our Homes). Put them together and you get the bill you actually pay each year.
One critical rule drives most of the surprises: when a home sells, the assessment for the new owner resets to market ("just") value starting the next tax year. The prior owner's homestead cap and exemptions don't carry over to you. That's why a waterfront home owned for 20 years can have a fraction of the tax bill of a brand-new build next door, and why a buyer of that older home will see a higher bill after the first reset.
Year 0 to Year 1: What Actually Happens When You Buy
January 1 is the snapshot date. Florida measures ownership and condition as of January 1 for that year's roll.
If you close after January 1, the current year's bill typically still reflects the seller's status and exemptions. You and the seller prorate that bill at closing (or when it's released in November).
Your "reset" hits the next tax year. That's when your assessed value steps up to market, your homestead (if filed) is applied, and the Save Our Homes cap begins to work.
Tip for cash flow in your first year: If you're sensitive to upfront outlay, buying later in the year (after the tax bill is issued) means you'll prorate that lower bill with the seller. It doesn't change the long-term math, but the first-year cash requirement can be gentler. The "reset year" that follows is where your new baseline starts.
Millage: What You're Paying "Per Thousand"
Millage is the rate per $1,000 of taxable value (assessed value minus exemptions). Your total rate is a stack: County + School Board + special districts (children's services, health care, water management, etc.) plus your city or town, and, in some areas, a fire-rescue or inlet district.
A useful countywide anchor for recent years is an aggregate of approximately 12.22 mills for the County/School/special-district stack. Your municipal layer sits on top. Selected coastal municipal rates (FY 2024-25):
Town of Palm Beach: 2.6110
West Palm Beach: 8.1308 (operating) + 0.0633 (debt) = 8.1941
Jupiter: 2.4748 (operating + debt)
Common add-ons where applicable: Jupiter Fire-Rescue MSTU ~1.6488, Jupiter Inlet District ~0.0722
Manalapan: 3.0000
Palm Beach Gardens: 5.0537
North Palm Beach: 7.4000
Tequesta: 6.4595
Palm Beach Shores: 6.3500 (operating) + 0.4290 (debt) = 6.7790
South Palm Beach: 3.4000
Riviera Beach: 8.3500
Juno Beach: 1.8195
Lake Worth Beach: 5.4945 (operating) + 0.9200 (debt) = 6.4145
Numbers change annually. Always check the latest local budget or Property Appraiser tables for the parcel you're evaluating.
Three Quick Examples: $3M, $5M, and $10M
Below are illustrative first-year ad valorem estimates (no exemptions, no non-ad valorem line items) to show how location changes the math. We use the county/school stack of approximately 12.22 mills plus the municipal layer (and, for Jupiter, common district layers where applicable). Formula: (Taxable value / 1,000) x total mills.
Town of Palm Beach (approximately 12.22 + 2.6110 = 14.8308 mills)
$3M: approximately $44,492
$5M: approximately $74,154
$10M: approximately $148,308
Jupiter (approximately 12.22 + 2.4748 + 1.6488 + 0.0722 = 16.4156 mills, where those districts apply)
$3M: approximately $49,247
$5M: approximately $82,078
$10M: approximately $164,156
West Palm Beach (approximately 12.22 + 8.1941 = 20.4139 mills)
$3M: approximately $61,242
$5M: approximately $102,070
$10M: approximately $204,139
Reality check: Non-ad valorem lines (solid waste, stormwater, CDDs, etc.) are added to the numbers above and are not limited by the Save Our Homes cap. Always underwrite them parcel-by-parcel.
The Cap That Changes Everything (Save Our Homes)
Here's why Florida works for long-term owners:
Homestead exemption (your primary residence) reduces taxable value by up to $50,000 (the second $25,000 does not reduce school taxes).
Save Our Homes (SOH) then caps your annual assessed-value increase at the lower of 3% or CPI.
Over 10 to 20 years, that cap compounds. Your market value may climb sharply, but your assessed value (and therefore your taxes) rise slowly.
If you move within Florida, portability lets you transfer up to $500,000 of your SOH benefit to a new homestead within three tax years, keeping your tax base efficient.
Why your neighbor pays less: A waterfront owner who homesteaded in 2005 has had nearly two decades of capped growth. Their tax bill can be a fraction of a new build next door. If you buy that older home now, your assessment resets to market for the next tax year, and you start fresh. Then your own cap begins working.
Bottom line: If this will be your primary residence, homestead as soon as you're eligible. Locking in that cap early is one of the most valuable "quiet returns" in Florida homeownership.
How to Keep First-Year Cash Flow Predictable
Model the reset. Assume next year's assessed value equals approximately your purchase price (adjust for land/building allocation if relevant), then apply the local millage stack.
Prorate smartly. If you close late in the year, you'll prorate the seller's current bill (often lower if they had homestead). That can ease first-year cash outlay, but plan for the reset the year after.
File early. Homestead (DR-501) and portability (DR-501T) filings are generally due March 1.
Calendar the cycle. TRIM (proposed taxes) typically arrives in August. Bills are issued November 1 through March 31 with early-pay discounts.
Price, then paperwork. In competitive situations, having your tax model, insurance quotes, and flood data ready often beats a marginal price bump.
What Varies by Town (and Why)
Municipal services and debt. Higher city services (or debt service) can mean higher municipal millage (e.g., West Palm Beach).
Special districts. Jupiter parcels often include a fire-rescue MSTU and, for certain waterfront locations, an inlet district. Small numbers individually, meaningful in aggregate.
Island towns. The Town of Palm Beach runs a comparatively low municipal rate but delivers full island services. The county/school portion remains the lion's share of the stack everywhere.
One-Page Checklist: No Surprises at Closing
Pull the Property Appraiser record and list every millage component and non-ad valorem line for the specific parcel(s).
Build two numbers: Year-one cash flow (proration of current bill) and Year-two reset (your market-based assessment).
Decide primary residence timing and confirm deed/trust language supports homestead eligibility for a natural person.
If moving within Florida, run portability math (up to $500,000).
For waterfront, add bridges/inlet realities to the total cost of ownership. Insurance and taxes live together.
Calendar: January 1 status date, August TRIM, November through March payment window (discounts).
Keep your counsel looped in: discuss entity vs. personal title, portability timing, and appeals where needed.
Sources and Methodology
Millage basics and how bills are calculated: pbcpao.gov/tax-roll.htm
County millage and recent-year anchor: Palm Beach County FY 2025 Budget Book
West Palm Beach adopted FY 2024/25 millage: City Commission Agenda 09/25/24
Town of Jupiter adopted millage: jupiter.fl.us/133/Millage-Rate
Jupiter Inlet District final budget and millage: Jupiter Inlet District 2025 Final Budget
Municipal millage quick sheet: 2024 Final Millage Rates (PDF)
Homestead, Save Our Homes, portability (forms DR-501 and DR-501T): Florida Department of Revenue
Payment cycle, discounts, and dates: pbctax.gov/taxes/property-tax
Information is general and not legal, tax, or investment advice. Equal Housing Opportunity.
If you're modeling property taxes as part of a Palm Beach County acquisition, we welcome a private conversation about carrying costs and timing.
