Estimating Palm Beach Property Taxes on a Purchase: Why the Seller's Tax Bill Will Not Be Yours

Palm Beach property taxes surprise many buyers in their second year of ownership. The reason is simple. The seller's tax bill reflects the seller's exemptions and caps, and those do not move to you. After you buy, the Property Appraiser resets the value and the bill can jump. This guide explains assessed and market value, millage, the extra charges on your bill and why the reset happens. It ends with a step by step way to estimate your own taxes before you make an offer.

Key takeaways

• After a sale, Florida law requires the Property Appraiser to remove the old exemptions and reset the assessed value to market value as of Jan. 1 of the next year.
• The Florida Department of Revenue warns that the taxes the prior owner paid are not necessarily what you will pay.
• Your bill is value times millage, plus non-ad valorem charges such as solid waste and drainage. In 2025, the county levied 4.5 mills and the school board 6.321 mills in total.
• City rates vary a lot. In 2025, Wellington levied 2.47 mills, Palm Beach Gardens 5.0537 and West Palm Beach 8.1308.
• If you make the home your homestead, file by March 1. You get up to $50,000 off, and future increases in assessed value are capped.

Why the seller's Palm Beach property taxes will not be yours

Florida's Save Our Homes rule limits how fast a homestead's assessed value can rise. Each year the cap is 3% or the change in the CPI, whichever is lower. For 2026 it is 2.7%. So an owner who has lived in a home for many years often has an assessed value far below market value. Their tax bill is low as a result.

That benefit belongs to the owner, not the house. The Palm Beach County Property Appraiser explains that when a property changes hands, state law requires it to remove the exemptions and reassess the home at its just, or market, value. The reset takes effect on Jan. 1 after you buy.

There is one more twist. The seller's exemption can stay on the home for the rest of the year of the sale. But it is not your exemption. In the next year, the bill is based on the new value and on your own exemptions, if any. So the tax amount on the listing can look far lower than what you will pay later.

The 10% cap on non-homestead property

Second homes, rentals and investment homes do not get Save Our Homes. Instead, their assessed value can rise up to 10% a year for non-school taxes. A sale still resets the value to market. So investors and seasonal buyers face the same jump in the first year, without the homestead discount.

How Palm Beach property taxes are figured

Your bill has two parts: ad valorem taxes and non-ad valorem assessments. The first is based on value. The second is a flat charge for certain services.

Assessed value, exemptions and taxable value

Start with the just value, which is the Property Appraiser's estimate of market value as of Jan. 1. After a sale, the assessed value starts over at that just value. Next, subtract any exemptions you qualify for. What is left is the taxable value.

The homestead exemption takes up to $50,000 off. Of that, the first $25,000 applies to all taxes. The second $25,000 applies to the part of the value above $50,000, and it does not apply to school taxes. Other exemptions exist for seniors, veterans and people with disabilities, so check the full list.

Millage: the tax rate

Millage is the rate. One mill equals $1 of tax for every $1,000 of taxable value. Several bodies set a rate, and you pay all the ones that cover your address. Here are some 2025 final rates from the Property Appraiser's millage table:

• Palm Beach County: 4.5000 mills, plus a small debt service levy.
• School Board: 3.0730 state and 3.2480 local, for 6.321 mills in total.
• Children's Services Council: 0.4908 mills, and the Health Care District: 0.6561 mills.
• South Florida Water Management District levies and the Florida Inland Navigation District: small rates that add up to about a quarter of a mill.
• County Fire Rescue (3.4581 mills) and Library (0.5491 mills) apply only in areas those districts serve.

Then add your city's rate. In 2025, Boca Raton levied 3.6476 mills, Wellington 2.4700, Palm Beach Gardens 5.0537, Jupiter 2.3894 and West Palm Beach 8.1308. Unincorporated areas have no city rate, but they usually pay the county fire and library rates instead.

Proposed 2026 rates

Rates can change each year. For 2026, the table shows proposed increases in some places. For example, Jupiter proposed 3.5886 mills and Delray Beach proposed 6.4371. Those figures come from the Property Appraiser's proposed table, last updated August 19, 2026. Final rates are voted on at September hearings, and as of October 1, 2026 the Property Appraiser had not posted final 2026 rates. Your November tax bill will show the adopted rates.

Non-ad valorem assessments

Many bills also carry flat charges that do not depend on value. Common ones include solid waste collection, drainage or water control districts and some neighborhood improvement districts. These appear on a separate part of the bill. Since they can add hundreds of dollars or more, look up the current bill on the Tax Collector's site before you budget.

Step by step: estimate Palm Beach property taxes before you buy

You can build a solid estimate in a few minutes. Here is how we walk our buyers through it.

1. Find the property on the Property Appraiser's site. Then use its tax estimator. Enter your price and whether you plan to homestead the home.
2. Check the total millage for that address on the current bill or TRIM notice.
3. Subtract the exemptions you will qualify for from your expected value.
4. Multiply the taxable value by the millage and divide by 1,000.
5. Finally, add the non-ad valorem charges from the current bill.

A worked example of Palm Beach property taxes

Here is a rough example. Say you buy a $650,000 home inside Boca Raton city limits, which matches the county's August 2026 single-family median. By our count of the 2025 line items, the total rate for that area is about 17 mills. About 6.3 of those mills are school taxes, and about 10.7 are everything else.

• As a homestead, school taxable value is about $625,000, so school taxes come to about $3,950.
• Non-school taxable value is about $600,000, so the rest comes to about $6,410.
• Together that is roughly $10,360 a year before non-ad valorem charges.
• Without homestead, such as for a second home, the same math gives roughly $11,050.

Now compare that with the listing. Suppose the seller has owned the home for 20 years and has an assessed value of only $300,000. Their bill could be less than half of yours. That gap is the reset at work. In real life, the Property Appraiser's just value may differ from your price, so use its estimator for a better number.

How Palm Beach property taxes are paid and prorated at closing

Florida taxes are paid in arrears. Bills go out in November for the current year. You get a 4% discount if you pay in November, 3% in December, 2% in January and 1% in February. After that, you pay the full amount, and unpaid bills become delinquent in April.

At closing, the standard Florida contract prorates the year's taxes between buyer and seller. If the current bill is not out yet, the proration uses the best figures available, often the prior year's bill. As a result, the seller's credit to you may reflect the seller's low bill, not your future one. So set aside more for taxes than the closing credit suggests. If you have a loan, your lender will also set up an escrow account, and your payment may rise once the new bill arrives.

Homestead and portability for buyers

If the home will be your permanent residence on Jan. 1, apply for homestead by March 1. After the reset year, Save Our Homes caps future increases in assessed value. If you are moving from another Florida homestead, you may also carry part of your old savings with portability. Our guide to homestead exemption portability covers the details, and our post on how property taxes in Florida work covers the statewide rules.

Also note that Amendment 3 is on the November 2026 ballot. If voters approve it, the homestead exemption for non-school taxes would rise starting Jan. 1, 2027. Watch for the result before you finalize a long-term budget.

Frequently asked questions

Will my taxes match the amount on the listing?

Probably not. The listing shows the seller's bill, which reflects their exemptions and caps. After you buy, the value resets to market as of the next Jan. 1.

How do I estimate Palm Beach property taxes for a home I want to buy?

Use the Property Appraiser's tax estimator with your price and homestead plans. Then add the non-ad valorem charges from the current bill.

When does the reassessment happen?

It takes effect on Jan. 1 after the purchase. The first bill based on the new value usually arrives that November.

Do second homes pay more?

Usually, yes. They get no homestead exemption, and their assessed value can rise up to 10% a year for non-school taxes.

What are non-ad valorem assessments?

These are flat charges for services such as solid waste or drainage. They do not depend on value, and they appear on the same bill.

Sources

• Palm Beach County Property Appraiser, frequently asked questions
• Florida Department of Revenue, property tax information for first-time Florida homebuyers
• Palm Beach County Property Appraiser, 2025 final and 2026 proposed millage rates
• Florida Statutes, s. 193.155
• Palm Beach County Property Appraiser, assessment caps
• Florida Realtors and Florida Bar, AS IS Residential Contract
• CBS Miami, homestead exemption on the November 2026 ballot
• Miami Realtors, Palm Beach County August 2026 market report

This article is general information, not legal, tax or financial advice. Rates and exemption rules change each year, so confirm your numbers with the Property Appraiser, the Tax Collector or a licensed tax professional.

Selling first? Get a free Pure Equity home value report, so you know your budget for the next home and its taxes. Get your home value. Buying in Palm Beach County? Schedule a buyer strategy call, and we will estimate the real carrying costs on every home you like before you make an offer. Schedule a call.