Why are my property taxes going up so much after I buy the house?

Sticker Shock is Real

You just found the perfect house.

The mortgage works, the location is great and then you see the property taxes.

Maybe they’re $4,000 now… but the next year your lender says you’ll be paying closer to $9,000.

What gives?

This is one of the biggest surprises for Florida buyers, especially if you’re moving from out of state or haven’t bought in a while.

Here’s why your taxes might feel like they’re doubling and what to actually expect.

Why Taxes Go Up After You Buy

Here’s the short version:

When a home in Florida is sold, the county resets the assessed value to match the purchase price.

That means your taxes are going to be based on what you paid, not what the seller was paying.

Here’s what that really means for your wallet:

• Longtime owners pay less but you won’t. If the seller has lived there a while, they’ve been protected by Florida’s “Save Our Homes” cap, which limits how much their assessed value can go up each year. You don’t inherit that your tax base resets.

• Your taxes are going up next year. The moment the sale closes, the county will reassess the home at your purchase price. That new assessed value determines next year’s tax bill and yes, it’s usually a big jump.

• But your lender is using the old tax number. Here’s the kicker: When your lender estimates your monthly mortgage payment, they base it on the current year’s tax bill not what it will be after you buy. So your escrow account may come up short, and when that happens? The bank comes calling.

  You’ll usually have two choices: pay the difference in a lump sum, or increase your monthly payment to make up the shortage.

How Homestead and Portability Can Help

• Homestead kicks in the year after closing. If this is your primary residence, apply for the Florida Homestead Exemption by March 1 of the following year. It reduces your taxable value by up to $50,000 and puts a cap on how much your home's assessed value can rise in future years based on inflation.

• How the cap works: Once homesteaded, your home's assessed value can only increase by the lower of 3% or the Consumer Price Index (CPI). In most years, that means 2–3% max. So your taxes stay relatively stable, even if home prices keep rising fast.

  Example:
  If your home is assessed at $400,000 this year, and the CPI is 2.5%, your new assessed value next year can only go up to $410,000 — even if the market value jumps much more.

• Portability = bringing savings with you. If you're selling another homesteaded property in Florida, you can transfer the difference between your market value and assessed value (your "Save Our Homes" benefit) to your new home. This can lower your taxes significantly on day one.

  Quick portability example:
  Sold home: Market value $500K, assessed at $350K → $150K in portability
  Buy new home at $600K → taxable value drops to $450K

What I’d Tell a Friend

If you’re buying in Florida, expect your taxes to go up the year after you close and don’t be surprised when your mortgage payment follows.

The seller’s tax bill is not your future.

Here’s what to do:

• Talk to your agent or mortgage pro about what taxes will look like after reassessment

• Apply for Homestead the minute you’re eligible

• Look into portability if you're selling another home in Florida

Bottom line: It’s not a broken system but it is confusing.

The more you understand it upfront, the fewer surprises (and escrow headaches) you’ll have later.

Stay Safe,

— Mike

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