Understanding Florida Property Taxes, Homestead Exemption & Veteran Benefits

One area that catches a lot of new-construction buyers off guard — especially lately — is property taxes.
Across Florida, homeowners have been shocked to see their mortgage payments jump after their first year. Why? Because property taxes are recalculated once the county appraiser updates your home’s value from vacant land to a completed structure.

Another important detail many buyers don’t realize is that Florida property taxes are paid in arrears.
This means:

• The taxes you pay this year are actually based on last year’s value

• Your first tax bill usually reflects raw land

• Your second bill reflects the full structure, which increases your escrow

• This increase is normal — but often unexpected

Many people panic simply because they were never told how Florida taxes actually work.

Some Builders Calculate Escrow Differently

Another thing that confuses buyers is how builders estimate your escrow at closing.
Some builders — especially the larger national ones — actually calculate escrow based on the sales price and the expected tax base of the finished home, not the raw land.

This means:

• Your escrow holdback may be closer to the true future tax amount

• Your monthly payment might already reflect higher taxes

• You may see less of a jump later because the builder estimated correctly

But not all builders do this.
That’s why it’s critical to review your escrow disclosure before closing to see how much your lender is collecting for property taxes and homeowners insurance.

As your REALTOR®, I go through that document with you so you know exactly what to expect — no surprises.

The Importance of Filing Your Homestead Exemption

Florida’s Homestead Exemption is one of the biggest money-savers for homeowners. Filing it:

• Lowers the taxable value of your home

• Saves you hundreds to thousands annually

• Caps future increases through Save Our Homes

• Must be filed by March 1st of the year after you move in

Many buyers who go directly to a builder’s sales office never hear about this at all — and missing the deadline can become a very expensive mistake.

Additional Benefits for Disabled Veterans

Florida also offers significant property tax savings for disabled veterans:

• Veterans with a service-connected disability of 10% or more qualify for a $5,000 exemption

• Veterans who are 100% permanently and totally disabled due to service-connected conditions may qualify for a full property tax exemption

• Surviving spouses may also qualify

These benefits can dramatically reduce — or even eliminate — property taxes, but they’re often overlooked unless a knowledgeable REALTOR® explains them.

When you work with me, I make sure all veterans and families understand every exemption they qualify for — so they Get More Value and keep more money in their pockets.

Whether you’re a buyer, new construction homeowner, veteran, or Florida resident trying to understand your tax bill, this video will help you get clarity — and Get More Value from your real estate decisions.

📍 Need help understanding your taxes, escrow, or homestead exemption?

Mike Schwiebert, REALTOR®-Sales Associate at INI Realty is a two time best of Clay County Real Estate Agent with 20+ Years in construction, 18+ Years as a Florida Realtor, and a girl Dad!

Call or text Mike anytime: 📞 (904) 562-9345 🌐 904HomeStore.com

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