The Complete Guide to Palm Beach County Property Taxes
Everything you need to understand about property taxes in Palm Beach County: how they're calculated, what homestead and Save Our Homes actually do, how portability works, and how to model your first-year and long-term carrying costs.
Introduction: Why Property Taxes Deserve Your Attention
For buyers relocating to Palm Beach County, property taxes are often an afterthought. The focus is on finding the right home, negotiating the price, and arranging financing. Taxes get a glance at closing and then a surprise when the first full bill arrives.
That surprise is avoidable. Florida's property tax system is straightforward once you understand its mechanics. More importantly, understanding those mechanics can save you tens of thousands of dollars over time and help you make smarter decisions about when to buy, how to hold title, and whether to file for homestead.
This guide explains everything you need to know: how property taxes are calculated, what happens when you buy, how homestead and Save Our Homes work, how portability can preserve your tax advantage when you move, and how to model your actual carrying costs before you close.
Part 1: The Three Levers That Determine Your Tax Bill
Florida property taxes are built from three components. Understanding each one is essential.
Lever 1: Assessed Value
Your assessed value is what your property is worth for tax purposes. It's determined by the Palm Beach County Property Appraiser's office and is supposed to reflect market value (what the property would sell for in an arms-length transaction).
Important distinction: Assessed value is not the same as taxable value. Taxable value is assessed value minus any exemptions you qualify for (such as homestead). Your tax bill is calculated on taxable value.
When you purchase a property, the assessed value resets to the purchase price (or close to it) for the following tax year. This is called the "reset effect," and it's one of the most important concepts in Florida property taxation.
Lever 2: Millage Rate
Millage is the tax rate applied to your taxable value. It's expressed as dollars per $1,000 of taxable value. A millage rate of 15.0 means you pay $15 for every $1,000 of taxable value.
Your total millage rate is actually a stack of individual rates from different taxing authorities:
Palm Beach County (general government operations)
Palm Beach County School Board
Special districts (children's services, health care district, water management, library, etc.)
Your municipality (city or town)
Additional local districts where applicable (fire-rescue MSTUs, inlet districts, community development districts)
Each authority sets its own rate annually, and they're all added together to create your total millage rate. This is why two homes in different towns can have materially different tax bills even at the same assessed value.
Lever 3: Exemptions and Caps
Florida offers several exemptions that reduce your taxable value, and caps that limit how fast your assessed value can grow.
The most important for homeowners:
Homestead exemption: Reduces taxable value by up to $50,000 for your primary residence.
Save Our Homes cap: Limits annual increases in assessed value to 3% or the Consumer Price Index, whichever is lower.
These benefits only apply to primary residences. Second homes and investment properties do not qualify.
Part 2: The Reset Effect (Why Your Neighbor Pays Less)
This is the concept that surprises most new buyers.
When a property sells, the assessed value resets to market value for the new owner. Any caps or exemptions the previous owner enjoyed do not transfer. You start fresh.
Here's how this plays out in practice:
A waterfront home was purchased in 2005 for $2 million. The owner homesteaded immediately. Over the next 20 years, market value climbed to $8 million, but because of the Save Our Homes cap (limiting increases to 3% or CPI annually), the assessed value only grew to approximately $3.5 million. The owner's tax bill is based on that $3.5 million assessed value.
You purchase that same home in 2025 for $8 million. Your assessed value resets to $8 million. Your tax bill is based on $8 million (minus homestead exemption if you qualify). You'll pay roughly double what the previous owner paid, even though you own the same house.
This isn't a flaw in the system. It's how Florida rewards long-term ownership. The benefit is real: if you homestead and hold for 10 to 20 years, your taxes will be dramatically lower than what a new buyer would pay for your home.
The practical implication: always model taxes based on your purchase price, not the seller's current tax bill. The seller's bill is irrelevant to what you'll pay.
Part 3: Homestead Exemption (The Foundation)
The homestead exemption is Florida's primary property tax benefit for owner-occupants. It has two components:
The Exemption Amount
The first $25,000 of assessed value is exempt from all property taxes (including school taxes).
The next $25,000 of assessed value (between $50,001 and $75,000) is exempt from non-school taxes only.
The net effect is up to $50,000 off your taxable value, though the school portion only gets the first $25,000.
For a home assessed at $5 million, this exemption saves approximately $700 to $1,000 annually depending on your millage rate. The dollar savings are modest at luxury price points, but homestead unlocks something far more valuable: the Save Our Homes cap.
Eligibility Requirements
You must own the property (or have a beneficial interest through certain trusts).
The property must be your permanent residence as of January 1 of the tax year.
You must be a Florida resident (driver license, voter registration, and other documentation should reflect Florida).
You must file the application (Form DR-501) by March 1 of the tax year.
Filing Deadline
The deadline is March 1. If March 1 falls on a weekend or holiday, the deadline moves to the next business day.
To qualify for 2026 homestead benefits, you must be a permanent Florida resident occupying the home as of January 1, 2026, and file by March 1, 2026.
Missing this deadline means waiting another full year. There is no retroactive application.
Title and Ownership Considerations
Homestead eligibility can be affected by how you hold title:
Personal name: Fully eligible.
Revocable living trust: Generally eligible if you are the grantor and beneficiary with a present possessory interest. Some appraisers request trust documentation.
LLC or corporation: Generally not eligible. If you hold property in an entity for liability or privacy reasons, you typically forfeit homestead benefits.
Irrevocable trusts and more complex structures: Eligibility varies. Consult your estate planning attorney before purchase.
This is an important decision to make before you go under contract, not after.
Part 4: Save Our Homes (The Compounding Benefit)
Save Our Homes (SOH) is Florida's assessment cap for homesteaded properties. It limits how much your assessed value can increase each year, regardless of what happens to market value.
How the Cap Works
Each year, your assessed value can increase by no more than 3% or the change in the Consumer Price Index (CPI), whichever is lower.
For 2025, the cap was 2.9% (tied to CPI). In years when CPI exceeds 3%, the cap remains at 3%.
The Compounding Effect
The power of Save Our Homes becomes clear over time. Consider a home purchased and homesteaded in 2010 for $3 million:
If market value grew at 5% annually, the home would be worth approximately $6.2 million by 2025.
If assessed value was capped at 3% annually, assessed value would be approximately $4.5 million by 2025.
The owner is paying taxes on $4.5 million instead of $6.2 million. That's roughly $25,000 to $35,000 in annual tax savings depending on millage rate.
Now extend that to 20 or 25 years of ownership. The gap between market value and assessed value can become enormous. Owners who homesteaded in the early 2000s often have assessed values that are 30% to 50% of current market value.
The Trade-Off
Save Our Homes creates a financial incentive to stay. If you sell and buy another home, your assessment resets to market value. You lose the accumulated benefit (unless you use portability, discussed below).
This is why some long-term owners are reluctant to move even when their needs have changed. The tax benefit of staying can be worth $50,000 or more annually.
Part 5: Portability (Taking Your Benefit With You)
Portability allows you to transfer some of your accumulated Save Our Homes benefit to a new Florida homestead. It's designed to give long-term owners flexibility without completely forfeiting their tax advantage.
How Portability Works
When you sell your homesteaded property and buy a new one in Florida, you can transfer the difference between your assessed value and market value (up to $500,000) to your new home.
This transferred amount reduces the assessed value of your new home, preserving some of your tax benefit.
The $500,000 Cap
Portability is capped at $500,000. If your accumulated benefit exceeds that, you can only transfer $500,000.
Example: Your current home has a market value of $4 million and an assessed value of $2 million. Your accumulated benefit is $2 million. You can transfer $500,000 to your new home. The remaining $1.5 million benefit is lost.
The Three-Year Window
You must establish your new homestead within three tax years of abandoning your old one.
If you sell on June 15, 2025, you have until January 1, 2028 to establish a new Florida homestead and claim portability.
Upsizing vs. Downsizing
The math works differently depending on whether your new home is more or less expensive:
Upsizing (new home costs more): Your portable benefit transfers dollar-for-dollar, up to $500,000.
Downsizing (new home costs less): Your portable benefit is prorated based on the ratio of the new home's value to the old home's value.
Example of downsizing: You had $400,000 of portable benefit. Your old home was worth $4 million; your new home is worth $2 million. The ratio is 50%. You can transfer $200,000 (50% of $400,000).
Filing for Portability
File Form DR-501T along with your new homestead application by March 1.
You'll need information about your prior homestead (county, parcel number, dates of ownership).
Part 6: The Tax Calendar (Key Dates)
Understanding the annual tax cycle helps you plan purchases and cash flow.
January 1: Assessment Date
This is the snapshot date. Your ownership status and the property's condition as of January 1 determine that year's assessment.
If you close on a home in February, you don't own it as of January 1. The seller's status (including any homestead) applies for that tax year.
March 1: Homestead Filing Deadline
Applications for homestead exemption and portability must be filed by this date. Miss it and you wait another year.
August: TRIM Notices
The Property Appraiser mails Truth in Millage (TRIM) notices in August. This shows your proposed assessed value, exemptions, and estimated taxes for the upcoming year.
Review this carefully. If you believe your assessed value is incorrect, this is the time to contest it. Information about the Value Adjustment Board (VAB) process is included with the notice.
November 1: Tax Bills Mailed
Tax bills are mailed November 1 and are due by March 31 of the following year.
Early Payment Discounts
Florida offers discounts for early payment:
November: 4% discount
December: 3% discount
January: 2% discount
February: 1% discount
March: No discount (full amount due)
On a $150,000 tax bill, paying in November saves $6,000. This is meaningful cash flow optimization.
Part 7: Millage Rates by Municipality
Your total millage rate depends on where the property is located. Here's how rates stack up across Palm Beach County's coastal communities.
The County/School Foundation
Every property in Palm Beach County pays a base layer of approximately 12.22 mills that includes:
Palm Beach County general government
Palm Beach County School Board
Countywide special districts (children's services, health care, water management, library, etc.)
This foundation is the same regardless of which municipality you're in.
Municipal Rates (FY 2024-25)
The municipal layer varies significantly:
Town of Palm Beach: 2.6110 mills
West Palm Beach: 8.1941 mills (8.1308 operating + 0.0633 debt)
Jupiter: 2.4748 mills (operating + debt)
Manalapan: 3.0000 mills
Palm Beach Gardens: 5.0537 mills
North Palm Beach: 7.4000 mills
Tequesta: 6.4595 mills
Palm Beach Shores: 6.7790 mills (6.3500 operating + 0.4290 debt)
South Palm Beach: 3.4000 mills
Riviera Beach: 8.3500 mills
Juno Beach: 1.8195 mills
Lake Worth Beach: 6.4145 mills (5.4945 operating + 0.9200 debt)
Additional Districts
Some properties are subject to additional special district millages:
Jupiter Fire-Rescue MSTU: approximately 1.6488 mills (applies to many but not all Jupiter parcels)
Jupiter Inlet District: approximately 0.0722 mills (applies to certain waterfront areas)
Community Development Districts (CDDs): vary by development
These add-ons can be meaningful. Always pull the full millage breakdown for the specific parcel you're evaluating.
Part 8: Calculating Your Tax Bill (With Examples)
Here's how to calculate estimated property taxes for a new purchase.
The Formula
(Purchase Price - Exemptions) / 1,000 x Total Millage Rate = Annual Ad Valorem Tax
For a new purchase with no exemptions yet applied:
Purchase Price / 1,000 x Total Millage Rate = First Full Year Tax
Example 1: Town of Palm Beach at $5 Million
Total millage: approximately 12.22 (county/school) + 2.6110 (municipal) = 14.8308 mills
Calculation: $5,000,000 / 1,000 x 14.8308 = $74,154
Example 2: Jupiter at $5 Million (with Fire-Rescue and Inlet District)
Total millage: approximately 12.22 + 2.4748 + 1.6488 + 0.0722 = 16.4156 mills
Calculation: $5,000,000 / 1,000 x 16.4156 = $82,078
Example 3: West Palm Beach at $5 Million
Total millage: approximately 12.22 + 8.1941 = 20.4139 mills
Calculation: $5,000,000 / 1,000 x 20.4139 = $102,070
Example 4: Town of Palm Beach at $10 Million
Total millage: approximately 14.8308 mills
Calculation: $10,000,000 / 1,000 x 14.8308 = $148,308
Example 5: Jupiter at $10 Million
Total millage: approximately 16.4156 mills
Calculation: $10,000,000 / 1,000 x 16.4156 = $164,156
Example 6: West Palm Beach at $10 Million
Total millage: approximately 20.4139 mills
Calculation: $10,000,000 / 1,000 x 20.4139 = $204,139
Important Notes
These are ad valorem (value-based) taxes only. Your actual bill will also include non-ad valorem assessments (solid waste, stormwater, fire assessments in some areas) that are not based on property value and are not subject to Save Our Homes caps.
Always pull the actual tax record for the specific parcel to see all components.
Part 9: The First-Year Cash Flow Reality
Understanding what happens in your first year of ownership helps you plan cash flow.
Scenario: Closing After January 1
You close on a $5 million home in Jupiter on April 15, 2026.
The 2026 tax bill (issued November 2026) reflects the seller's January 1, 2026 status. If the seller was homesteaded with an assessed value of $2.5 million, the bill might be approximately $41,000.
At closing, you and the seller prorate this bill. You pay roughly 8.5/12 of it (April through December), or about $29,000.
Your "reset year" is 2027. Your January 1, 2027 assessed value will be approximately $5 million (your purchase price). Your 2027 tax bill (issued November 2027) will be approximately $82,000.
The Cash Flow Jump
In this example, your tax expense goes from approximately $29,000 (prorated seller's bill) in year one to approximately $82,000 in year two. That's a $53,000 increase.
This is not an error. It's the reset effect working as designed. Plan for it.
Strategic Timing
Some buyers prefer to close late in the year (October, November, December) after tax bills are issued. This allows you to prorate a known amount rather than estimating, and it minimizes your first-year cash outlay.
The long-term math doesn't change, but first-year cash flow can be gentler.
Part 10: Homestead Strategy for New Residents
If you're relocating to Florida and the property will be your primary residence, timing matters.
The Optimal Sequence
Close on the property in the fall or early winter.
Establish Florida residency promptly: driver license, voter registration, vehicle registration, mailing address.
Occupy the home as your permanent residence by January 1.
File homestead application (DR-501) by March 1.
If applicable, file portability application (DR-501T) at the same time.
Common Mistakes
Waiting too long to establish residency. If you close in October but don't get your Florida driver license until February, you may have difficulty proving January 1 residency.
Missing the March 1 deadline. There are no extensions. Miss it and you lose a full year of benefits.
Holding title in an ineligible entity. If you buy through an LLC for privacy, you forfeit homestead. Decide this before closing.
Maintaining conflicting residency in another state. If you're claiming homestead in Florida and still have a driver license, voter registration, or homestead in another state, you're creating audit risk.
Part 11: Non-Ad Valorem Assessments
Your tax bill includes more than just millage-based taxes. Non-ad valorem assessments are fixed charges for specific services.
Common Non-Ad Valorem Items
Solid waste (garbage collection)
Stormwater management
Fire-rescue assessments (in some jurisdictions)
Street lighting districts
Community Development District (CDD) assessments (in master-planned communities)
Key Differences from Ad Valorem Taxes
Non-ad valorem assessments are not based on property value. A $2 million home and a $10 million home on the same street may pay the same solid waste fee.
They are not reduced by homestead exemption.
They are not subject to Save Our Homes caps.
They can increase without the limitations that apply to ad valorem taxes.
CDD Assessments
Properties in master-planned communities often have CDD assessments that fund infrastructure (roads, drainage, amenities) built by the developer. These can range from a few thousand dollars to $15,000 or more annually and are in addition to regular property taxes.
Always check for CDD assessments before purchasing in a newer community.
Part 12: Contesting Your Assessment
If you believe your assessed value is incorrect, you have the right to appeal.
The TRIM Notice
Your TRIM notice (mailed in August) shows your proposed assessed value for the upcoming year. Review it carefully.
Informal Review
Contact the Property Appraiser's office to request an informal review. Provide evidence of comparable sales, property condition issues, or errors in the property record. Many disputes are resolved at this stage.
Value Adjustment Board (VAB)
If informal review doesn't resolve the issue, you can file a petition with the Value Adjustment Board. There's a filing fee and a deadline (typically 25 days after the TRIM notice is mailed).
The VAB is a quasi-judicial process. You'll present evidence to a special magistrate who makes a recommendation to the board.
When Appeals Make Sense
Clear errors in the property record (wrong square footage, incorrect lot size, phantom improvements)
Comparable sales that support a materially lower value
Condition issues that impair value (foundation problems, environmental issues, pending litigation)
Significant market decline since purchase
When Appeals Rarely Succeed
Disagreement with a market value that's supported by comparable sales
General dissatisfaction with tax burden
Arguments based on what you "feel" the property is worth
Part 13: Planning Checklist for Buyers
Before you close, complete this checklist to avoid surprises.
Tax Modeling
Pull the Property Appraiser record for the specific parcel.
List every millage component and non-ad valorem assessment.
Calculate two numbers: first-year prorated amount and second-year reset amount.
Factor taxes into your total cost of ownership alongside insurance, maintenance, and HOA/POA fees.
Homestead Planning
Decide whether this will be your primary residence.
Confirm your title structure supports homestead eligibility.
Plan your residency establishment timeline (driver license, voter registration, vehicle registration).
Calendar the March 1 filing deadline.
Portability (If Applicable)
Gather information about your current Florida homestead (parcel number, dates, county).
Calculate your accumulated Save Our Homes benefit.
Determine how much can transfer (up to $500,000, prorated if downsizing).
File DR-501T with your new homestead application.
Documentation
Obtain current tax bill from seller.
Review TRIM notice if available.
Confirm there are no delinquent taxes or pending tax certificate sales.
Part 14: Sources and Resources
For the most current information, consult these official sources:
Millage basics and how bills are calculated: pbcpao.gov/tax-roll.htm | pbcpao.gov/trim/tax-calculated.htm
Palm Beach County FY 2025 Budget: FY 25 Budget Book (PDF)
Florida Department of Revenue millage data: millage_taxes_levied.xlsx
West Palm Beach adopted millage: City Commission Agenda 09/25/24 (PDF)
Town of Jupiter millage: jupiter.fl.us/133/Millage-Rate
Jupiter Fire-Rescue MSTU: Palm Beach County Budget Hearing Package (PDF)
Jupiter Inlet District budget and millage: 2025 Final Budget (PDF)
2024 Final Millage Rates by municipality: 2024_Final_Millage_Rates.pdf
Homestead, Save Our Homes, and portability: Florida Department of Revenue
Payment cycle and deadlines: pbctax.gov/taxes/property-tax | Important Dates and Deadlines
Information is general and not legal, tax, or investment advice. Consult qualified professionals for guidance on your specific situation. Equal Housing Opportunity.
If you're evaluating a purchase in Palm Beach County and want help modeling property taxes as part of your total cost of ownership, we welcome a conversation.
Tags: Palm Beach County property taxes, homestead, Save Our Homes, portability, TRIM, millage rates, Jupiter, Palm Beach, West Palm Beach, Manalapan, tax planning, cost of ownership
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