By KeyCrew Media
When a long-held homesteaded property changes hands in Florida, the new buyer starts fresh with the property’s tax protections rather than inheriting the seller’s. For relocating buyers, understanding this early makes it easy to plan accurately for what they will owe each year.
The 3% Cap and What Happens at Closing
Florida’s Save Our Homes Act limits annual property tax increases to 3% for homesteaded properties. For a seller who has owned a home for 15 years, that cap can create a meaningful difference between assessed value and market value. According to Bobby Mathews, Team Leader at BluSkye Group with RE/MAX Foxfire, that protection resets when a new buyer takes title.
Mathews describes a scenario that comes up regularly in Central Florida: a buyer relocating from Chicago purchases a home whose seller has held it for 15 years under homestead protection. “That means their property tax has been capped at that 3% increase for 15 years,” he says. “So now if you have somebody from Chicago moving down and they’re just buying that property, now the whole thing resets.”
The reset means the new buyer is assessed at the property’s current market value, giving them a clean, accurate starting point. In a market like Ocala, where values have appreciated over the past decade, knowing this ahead of time helps buyers plan for the tax figure that reflects today’s value.
Why Appreciating Markets Make Planning Even More Valuable
The tax reset carries particular relevance in markets that have seen sustained price appreciation. When a property’s market value has climbed above its capped assessed value, understanding the difference between what the seller pays and what the new buyer will owe allows buyers to budget with confidence. Those who account for this reset can model their monthly carrying costs precisely from the start.
Mathews says this is one of the most important planning points for out-of-state buyers, particularly retirees on fixed incomes who are carefully modeling monthly expenses before committing to a purchase. Knowing the figure in advance ensures there are no surprises, since that number will not appear on the listing sheet.
Amendment Three Adds a New Opportunity to Watch
The tax landscape in Florida is also evolving. Mathews points to Amendment Three, which will be on the November ballot at the time of the interview, as a potential change for homeowners. The amendment proposed increasing the homestead exemption from $50,000 to $150,000 in 2027, and then to $250,000 in 2028, for non-school tax purposes, reducing the taxable assessed value for primary residences.
For investors and owners of secondary properties, Mathews notes a separate provision: Florida currently caps property tax increases on non-homesteaded properties at 10% annually, and the proposed legislation would reduce that cap to 5%.
Mathews notes that local governments and public safety agencies have shared their perspective as well. “The police departments, the fire department are saying, well, that’s going to cause a significant deficit in their funding to the tune of almost $12 billion.” The amendment required 60% voter support to pass, and Mathews noted that polling at the time showed support below that threshold.
For buyers considering a purchase in Florida, following the outcome of Amendment Three is one more reason, Mathews suggests, to seek current, localized guidance that reflects the most up-to-date picture.
Coordinating With the Property Appraiser’s Office
Mathews advises buyers to work with their real estate agent and contact the local property appraiser’s office before making an offer, so they have full clarity from the beginning.
“It’s very important that they talk to their real estate agent and coordinate with the property appraiser’s office to make sure that they have a good understanding of what that tax bill is actually going to look like for them, not for the seller that’s currently selling the house,” Mathews says.
Mathews says this kind of proactive coordination is part of how his team prepares out-of-state buyers for the full cost picture before they commit. Walking buyers through the distinction between the seller’s current tax obligation and the buyer’s projected obligation, and connecting them with the appraiser’s office for a realistic estimate, is, in his view, a hallmark of the attentive service his team provides.
As more buyers relocate to Central Florida from high-tax states, understanding how the reset mechanism works empowers them to make confident, well-informed decisions. It is a structural feature of Florida tax law, and buyers who account for it can build a monthly budget that lines up perfectly with their first tax bill. For personalized guidance, buyers can connect with Bobby Mathews and his team.
RE/MAX Foxfire is a full-service real estate brokerage celebrating its 50th year of serving Ocala, The Villages, Summerfield, and the greater Central Florida region. The brokerage specializes in residential sales, 55-plus communities, equestrian and farm properties, and luxury acreage.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
