Property taxes on a new build in Central Florida: what buyers should know

Property taxes on a new construction home in Central Florida often jump noticeably after the first year, and the reason surprises many buyers: the first tax bill is typically based mostly on the land, and the home itself is added to the tax roll at full value only later. In plain terms, a new build is assessed at its full market value as of the first January 1 after it is substantially complete, and that full value becomes the starting point for your annual tax bill. This post explains how the math works, what the Florida homestead exemption is worth in 2026, how the Save Our Homes cap limits future increases, and how to estimate your own bill before you sign.

The short answer: expect a jump after the first year

Builders can quote an estimated property tax at contract that looks low, because during construction the improvement may not yet be on the tax roll. In Florida, a new home is assessed at its full market value, called just value, as of the first January 1 after the structure is substantially completed. If you close in the middle of a year, your first bill can be based on the land plus whatever portion of the build existed on the prior January 1, and the home's full value lands on the roll the following year. That is the jump buyers should plan for: the second full tax bill is normally the realistic one, not the first.

How Florida property taxes are actually calculated

Florida property taxes are an ad valorem tax, which means by value. The county property appraiser sets an assessed value for your home, you subtract any exemptions you qualify for to get a taxable value, and the taxing authorities (county, city, school district, and special districts) apply their millage rates to that taxable value. A mill is one dollar per $1,000 of taxable value. So the formula is simple even when the inputs are not: assessed value minus exemptions equals taxable value, and taxable value times the millage rate equals your annual property tax.

The Florida homestead exemption and what it is worth in 2026

The homestead exemption reduces the assessed value your taxes are calculated on, and it is the most valuable tool a primary home owner has. For tax year 2026, the first $25,000 of assessed value is exempt from all property taxes, including the school district portion. A second exemption applies to assessed value between $50,000 and $75,000, and that layer is adjusted each year for inflation: for 2026 it is up to $26,411 and applies to non-school taxes only. Combined, a qualifying owner can exempt up to $51,411 of assessed value for 2026. These are the 2026 figures from Florida Department of Revenue guidance; the second exemption amount changes each year with the Consumer Price Index, so confirm the current number with your county property appraiser.

Who qualifies for the homestead exemption

You qualify when the home is your permanent residence. In practical terms for a new build, you must own the home and occupy it as your primary residence as of January 1, and you must file an application with your county property appraiser by March 1 of that same year to receive the exemption for that tax year. The home must be your legal residence, not a vacation home or a rental, and only one homestead exemption per household is allowed. Buyers who are relocating to Florida from out of state often qualify as soon as they close and move in, as long as the January 1 and March 1 timing works out, and the free Florida Residency and Tax Savings Blueprint covers the residency rules in more depth.

Save Our Homes: the cap on future assessment increases

Once your homestead exemption is in place, the Save Our Homes amendment limits how much your assessed value can rise each year: no more than 3% or the change in the Consumer Price Index, whichever is lower. For tax year 2026 the cap is 2.7%. The cap does not apply to a new build's first year on the roll, because new construction is assessed at full market value with no cap in that first year. The cap starts limiting increases in the years after your first homestead year, which is why the first full-value assessment matters so much: it sets your base, and the cap protects you from large increases on top of it.

Portability: bring your cap with you

If you already have a Florida homestead, the unused benefit from your Save Our Homes cap can transfer to your new home. The ported amount is capped at $500,000, you must establish the new homestead within three tax years, and you file Form DR-501T with the property appraiser of your new county. Portability works across all 67 Florida counties, so moving from another part of the state to a new build in Central Florida does not reset your benefit to zero, as long as you meet the deadlines.

Where the millage rates come from and why they vary

Millage rates are set each year by the taxing authorities that serve your address: the county commission, the city or town, the school district, and any special districts. That is why two similar homes a short drive apart can carry noticeably different property taxes: one may sit in a city with its own millage while the other does not, and school and county rates vary too. In Central Florida, Orange, Osceola, Polk, Lake, and Seminole counties each have their own rates, and communities within each county can differ by city and district. The millage for a specific homesite is public information, and it is worth confirming rather than assuming.

Why your first tax bill can feel low

When a builder hands you an estimated property tax, ask what the estimate is based on. Early in the process it is often calculated on the land value only, or on a partial assessment, because the home is not yet on the tax roll. The property appraiser's Notice of Proposed Property Taxes, usually mailed in August, is where you will see the full-value assessment and the actual millage. Read that notice when it arrives: it shows the proposed taxable value, the exemptions on your account, and each taxing authority's rate, and it is the earliest reliable look at your real bill.

CDD assessments and HOA fees are separate line items

New Central Florida communities frequently carry Community Development District (CDD) assessments, and those are non-ad valorem charges that appear on the tax bill but are not reduced by the homestead exemption. The same is true of HOA fees, which are billed separately. A low property tax number on paper can still come with a meaningful CDD assessment on top, so ask for the full breakdown: property tax, CDD, and HOA, as three separate line items.

How to estimate your own property tax before you buy

You can build a rough estimate before you choose a community: get the county's current millage rate for the property's taxing district, multiply by your expected taxable value, and add any CDD assessment. Your agent or the builder can point you to the county property appraiser's website, where current millage and recent assessments are public. For a fuller picture of what the purchase costs beyond the price itself, the deposits and closing costs guide walks through the closing-side numbers, and the CDD guide explains how district assessments show up on the tax bill.

Questions to ask before you sign

• What is this home's estimated annual property tax after the full-value assessment, not just the land-only number?
• Is the estimate based on the current millage rate for this taxing district, and does the builder adjust it when rates change?
• What are the property tax, the CDD assessment, and the HOA fee as three separate line items?
• Am I likely to qualify for the homestead exemption in my first year, and what is the deadline to file?
• If I already have a Florida homestead, can I port the Save Our Homes benefit to this home, and what is the deadline?

How the GPG Team can help

Tyler Gibson and the GPG Team review the tax math with Central Florida new-build buyers regularly, including the land-only estimate trap and the homestead filing timeline. As a Florida-licensed Realtor and investor who owns rental property himself, Tyler can walk you through the tax, CDD, and fee picture before you choose a community, and the free Florida Residency and Tax Savings Blueprint covers residency and state income tax rules for relocating buyers. The property tax figures and exemption amounts in this post are from Florida Department of Revenue guidance for tax year 2026, and they change with the Consumer Price Index and each county's millage, so verify the current numbers with your county property appraiser before you commit.