Florida property taxes are a significant cost for homebuyers. The average effective property tax rate in Florida is roughly 0.80-0.97%, lower than the national average, but varies significantly by county. Homestead exemption offers a tax break on primary residences, reducing taxable value by up to $50,000. Assessments are based on fair market value as of January 1st each year. Tax rates (millage rates) are set by local governments. Save Our Homes assessment limitation caps annual increases in assessed value for homesteaded properties at 3% or the percentage change in the Consumer Price Index (CPI), whichever is lower. New construction and properties that have changed ownership are reassessed at market value. Buyers should research current and historical tax rates for their desired location and estimate future tax liability. Certain exemptions are available for seniors, disabled persons, and veterans. Property tax bills are typically mailed in November and discounts are offered for early payment.