Why do the seller's tax breaks disappear?
Florida sets each property's value and exemption status as of January 1 for the whole year. If the seller had a homestead exemption, it can stay on the property through the end of the calendar year you buy, but it is not your exemption, and it is removed as of the next January 1.
Section 193.155 then requires a homestead property to be assessed at just value as of January 1 of the year following a change of ownership. The Broward County Property Appraiser explains that the new assessment is based on your purchase price and comparable market data, and that the seller's Save Our Homes savings automatically expire at the end of the year of sale.
This is why a long-time owner's bill can be far lower than yours for a similar house: their assessed value has been capped for years, while yours starts over at market value.[1][3][4]
Do second homes and investment properties reset too?
Yes. If the home will not be your homestead, it falls under a separate 10% annual cap on assessed-value increases for non-school taxes, and that cap also resets: the property is reassessed at just value as of January 1 of the year after a change of ownership or control. The Palm Beach County Property Appraiser notes that the seller's 10% cap continues only through the end of the tax year in which you buy.
School taxes are not limited by the 10% cap, so a non-homestead owner pays school millage on the full assessed value. The Palm Beach office adds that owners under the 10% cap must promptly report any change of ownership or control that is not recorded on a deed.[2][5]
What else can raise the bill, and what can you do?
Tax rates and non-ad valorem fees, such as fire-rescue, waste or drainage charges, can also go up. The Notice of Proposed Property Taxes (TRIM notice) mailed in August compares this year's values and rates with last year's and lists the public hearing dates for each taxing authority.
If you think the assessed market value is too high, contact the property appraiser first. You can also file a petition with the Value Adjustment Board, which is due on or before the 25th day after the TRIM notice is mailed. Waiting for the November bill is too late to change that year's value.[4][6]
Key takeaways
- A sale triggers reassessment at market value as of the next January 1.
- Any homestead exemption on the property in your first year belongs to the seller and ends at year-end.
- Filing your own homestead by March 1 restores the exemption and starts a new Save Our Homes base.
- Non-homestead property has a 10% cap for non-school taxes, but it also resets after a sale.
- Value disputes must be raised within 25 days after the August TRIM notice is mailed, not when the bill arrives.
Sources
- [1]Florida Legislature — Section 193.155, Florida Statutes: Homestead assessments
- [2]Florida Legislature — Section 193.1554, Florida Statutes: Assessment of nonhomestead residential property
- [3]Palm Beach County Property Appraiser — Exemption Services (Exemption FAQ)
- [4]Broward County Property Appraiser — Frequently Asked Questions
- [5]Palm Beach County Property Appraiser — Assessment Caps (3% and 10%)
- [6]Florida Legislature — Section 194.011, Florida Statutes: Assessment notice; objections to assessments
Reviewed October 11, 2026. General real-estate information for Florida, not legal, tax, lending or insurance advice. Laws, rates and deadlines change — confirm property-specific facts with the agency cited, a Florida real-estate attorney, CPA or licensed insurance agent.