Assessment Caps in Florida
Assessment caps are constitutional limits on how much a Florida property's assessed value can increase annually, regardless of market appreciation. These caps create predictable tax burdens for property owners but reset upon sale, creating significant tax differences between long-term owners and new buyers.
Save Our Homes (Homestead)
The Save Our Homes amendment caps annual assessment increases on homestead property at the lesser of 3% or the CPI. A homeowner whose property appreciates 15% in a year sees only a 3% assessment increase. Over a decade of strong appreciation, this can create a gap of hundreds of thousands of dollars between market value and assessed value, translating to thousands in annual tax savings.
Non-Homestead Cap
Florida's non-homestead assessment cap limits annual increases on commercial, rental, and vacant properties to 10%. While less generous than the homestead cap, this still provides meaningful protection during periods of rapid appreciation. Like the homestead cap, the non-homestead cap resets to market value upon change of ownership, increasing the new owner's tax burden.
Related Terms
- Portability
- Homestead Exemption
- Ad Valorem Tax
Barnes Walker Real Estate
Barnes Walker advises on property tax assessment strategies throughout Southwest Florida. Contact us for tax planning guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC