Effective rate, median annual bill, homestead exemption, and assessment cap rules under Fla. Stat. § 196.031
Median bill is the actual ACS 2022 figure for owner-occupied housing units in Florida. Your specific bill will vary by county and municipality, local mill rates can swing the effective rate by 30%+ within a single state.
Florida has no state income tax, which is the headline that draws investors. But for a rental owner the real recurring cost is the property tax bill, and Florida's rules treat your rental very differently from the house you live in. The state's effective property tax rate on owner-occupied housing is about 0.78% (Tax Foundation), roughly in line with the national middle of the pack. County effective rates run from about 0.44% in Holmes County to 0.99% in Alachua County, so where you buy matters as much as the statewide average. The catch for landlords: the two big assessment protections Florida homeowners enjoy either don't apply to rentals or apply in a weaker form.
Florida assesses real property at just value (fair market value) as of January 1 each year, then applies exemptions and caps before the millage rate is levied (Fla. Const. Art. VII s.4; Fla. Stat. 193.011). There is no separate, lower assessment ratio for investment property, so a rental starts from full market value.
Statewide, the effective property tax rate on owner-occupied housing is about 0.78% (Tax Foundation). Rental effective rates land in the same neighborhood but tend to run slightly higher over time, because rentals lack the homestead exemption and are capped less aggressively (see below). County variation is wide: from roughly 0.44% (Holmes) to 0.99% (Alachua). On a $400,000 rental, a 0.9% effective rate is $3,600 a year; at 0.6% it's $2,400 — a $1,200 annual swing driven purely by county, before any millage changes.
Two protections shield Florida homeowners, and a landlord gets neither on a leased property. First, the homestead exemption removes up to $50,000 of assessed value from most levies (Fla. Const. Art. VII s.6; Fla. Stat. 196.031) — but it requires the property to be your permanent residence, so it is unavailable on a rental. Second, the Save Our Homes cap limits annual assessed-value growth on a homestead to the lesser of 3% or the change in CPI (Fla. Const. Art. VII s.4(d)). That cap also applies only to owner-occupied homesteads, not to rentals.
The practical effect: on the same block, an owner-occupant's assessed value may be frozen years behind market while your rental is re-assessed toward full market value every January 1.
Rentals do get one guardrail. Under a 2008 constitutional amendment, the assessed value of non-homestead property cannot increase more than 10% per year over the prior year's assessed value (Fla. Const. Art. VII s.4(g); Fla. Stat. 193.1554 and 193.1555, effective 2009). This covers second homes, vacation homes, vacant land, commercial property and residential rentals.
Two limits matter. The cap excludes school district (school board) levies — school taxes are still calculated on full just value, so a fast-appreciating rental can see its school-tax portion jump well beyond 10%. And the cap resets on a change of ownership or use, so buying at today's market price starts your assessment at full value with no accumulated cushion.
If you rent furnished units, the furnishings, appliances and equipment are tangible personal property (TPP) and are separately taxable. Florida grants a $25,000 TPP exemption (Fla. Stat. 196.183); you generally have to file a return (form DR-405) to claim it, after which small landlords often owe little or nothing on TPP.
Each August the county mails a Truth in Millage (TRIM) Notice of Proposed Property Taxes (Fla. Stat. 200.069) showing just value, assessed value, exemptions and the proposed millage before rates are final. For a landlord this is the window to check the assessment and file a petition with the Value Adjustment Board if the just value looks high — an over-assessment compounds every year you don't challenge it.
Property tax is usually a landlord's single largest operating line after debt service. The common national heuristic — the 50% rule, which pencils operating costs (taxes, insurance, maintenance, vacancy) at roughly half of gross rent — is only a rule of thumb, not a law, and in Florida it can understate the tax load in high-millage or fast-appreciating counties.
Model the tax on full just value with only the 10% non-homestead cap, never on a seller's homestead-capped bill. When you buy, the prior owner's Save Our Homes or 10%-cap cushion evaporates and the property is re-assessed at your purchase price, so the first-year tax bill can be far higher than the seller was paying. Florida's lack of a state income tax on rental profit is a genuine advantage — but it is partly offset by property taxes that, unlike a homeowner's, are not shielded from rising market values.
$50,000 exemption ($25,000 for all taxes + $25,000 except school). Save Our Homes caps annual assessment growth at 3% or CPI, whichever is lower.
The exemption is granted under Fla. Stat. § 196.031. To claim it, owner-occupants must typically file an application with the county assessor (most states require filing once, with renewal triggered only by change of ownership or use). Failure to file the application means full taxation at the non-homestead rate.
This page summarizes Florida property tax rules as they apply to residential rental (non-homestead) property, drawn from the Florida Constitution (Art. VII), the Florida Statutes (including ss.193.011, 193.1554, 193.1555, 196.031, 196.183 and 200.069), the Florida Department of Revenue, and effective-rate data published by the Tax Foundation. Millage rates, exemption amounts and assessment caps are set at the state and county level and change; confirm current figures with your county property appraiser and tax collector before relying on them. This is general information for landlords, not legal or tax advice.
Florida's effective property tax rate on owner-occupied housing is about 0.78% (Tax Foundation), and rental effective rates cluster in the same range but often run slightly higher because rentals get no homestead exemption. County effective rates span roughly 0.44% (Holmes) to 0.99% (Alachua), so the county drives the actual bill.
No. The Save Our Homes cap, which limits assessed-value growth to the lesser of 3% or CPI, applies only to a homestead — your permanent residence (Fla. Const. Art. VII s.4(d)). Rentals instead fall under the separate 10% non-homestead cap.
Under Fla. Const. Art. VII s.4(g) and Fla. Stat. 193.1554/193.1555 (effective 2009), a rental's assessed value can't rise more than 10% per year over the prior year — but the cap excludes school district levies, and it resets when the property changes ownership or use.
No. The homestead exemption (up to $50,000 off assessed value under Fla. Stat. 196.031) requires the property to be your permanent residence. A property you rent to tenants does not qualify.
Florida levies no state personal income tax (Fla. Const. Art. VII s.5), so your net rental income is taxed only at the federal level. Property tax, not income tax, is the state-level cost that matters for Florida rentals.
Potentially. Furnishings and appliances are tangible personal property, taxed separately, but Florida grants a $25,000 TPP exemption (Fla. Stat. 196.183). You typically file form DR-405 to claim it, after which many small landlords owe little or no TPP tax.
Effective rate source: Tax Foundation analysis of Census ACS 2022 (published 2024). Statutory citation: Fla. Stat. § 196.031. Last updated July 14, 2026. For informational purposes only, not tax or legal advice. Consult a CPA or tax attorney for your specific situation.
