Florida Homestead Exemption 2026: How New Palm Beach County Homeowners Save Thousands on Property Taxes

I'm Rachel Williams, a Realtor with The Premier Group at Compass, specializing in Delray Beach luxury homes and condos.This guide covers property taxes and the homestead exemption across Palm Beach County, with a focus on Delray Beach, Boca Raton and West Palm Beach. Treat the numbers as a starting point, since rates and caps change every year. Every figure has its source listed at the end, and if something can't be confirmed, I'll tell you.

If you're still in the planning stage, pair this guide with my complete relocation guide for buyers moving from New York to Delray Beach or Boca Raton. It covers the move itself, and this one covers what you'll pay once you own.

Here's a question I get on almost every relocation consult: "What will my taxes actually be?" Usually it comes right after a buyer sees the seller's tax bill on a listing and thinks they've found a bargain. They haven't. And the one thing that protects them most is a form a lot of new Floridians forget to file.

That form is the homestead exemption. If you're buying a home you'll live in full time, it's the single most valuable tax break Florida offers, and it's worth understanding before you write an offer.

How property taxes work in Palm Beach County

Your tax bill comes down to one formula: taxable value times the combined millage rate where your home sits. One mill equals $1 of tax for every $1,000 of taxable value.

In most Palm Beach County cities, the combined rate falls somewhere between 16 and 21 mills, or roughly 1.6% to 2.1% of taxable value. That total stacks several pieces: the county, the school board, your city and any special districts. The county's operating rate has held at 4.5000 mills.

The city portion is where the three markets I work most really separate. Based on 2025 final rates from the Palm Beach County Property Appraiser:

Rates are reset every September, so always check the current year before running numbers on a specific home.

Taxes are only one piece of choosing a city. I break down prices, beaches, downtowns and neighborhoods in Boca Raton vs Delray Beach: How Buyers Decide in 2026, and if you're shopping condos, see Luxury Condos in Delray Beach vs Boca Raton vs West Palm Beach.

You'll also see three different values on your annual notice, and knowing the difference saves a lot of confusion:

•    Just value (market value): what the Property Appraiser believes your home was worth on January 1.

•    Assessed value: market value after any cap is applied.

•    Taxable value: assessed value minus your exemptions. This is the number your millage rate is applied to.

What the Florida homestead exemption actually covers

For the 2026 tax year, homestead can reduce your taxable value by up to $51,411. It works in two parts:

The second part used to be a flat $25,000. Florida voters approved tying it to inflation in 2024, which is why it's now an uneven number that adjusts each year.

In real dollars, the Palm Beach County Property Appraiser has estimated the exemption saves most homeowners around $750 to $1,000 a year. That's helpful, but it's not the main event.

Who qualifies

According to the Palm Beach County Property Appraiser, you must meet all of these as of January 1:

•         Be a permanent resident of Florida

•         Hold title to the property

•         Make the property your permanent residence

•         Have no other residency-based tax benefit anywhere else

That last one matters for my New York buyers. The Property Appraiser specifically names programs like New York's STAR and Enhanced STAR. If you're still receiving one of those on a home up north, you'll need to give it up before you can claim homestead here.

What you'll need to apply

The Property Appraiser asks for:

1.       Social Security numbers for every owner applying, plus their spouses

2.       A valid Florida driver's license (or Florida ID if you don't drive)

3.       Proof of permanent residency, such as a green card, if you're not a U.S. citizen

4.       At least one of the following: Florida vehicle registration, Florida voter registration (your voting address has to match the home), a Declaration of Domicile, a federal tax return, or utility bills from the property

My advice: book your Florida driver's license appointment the week you close. It's the piece that holds most people up.

Once you have it

You don't reapply every year. The Property Appraiser renews it automatically and mails a pink and white receipt card on the last business day of December. Keep that card as your proof.

If anything changes, like a sale, marriage, divorce, death, or you start renting the home, you're required to let the Property Appraiser know. And if you move, your homestead does not follow you. You file a new application on the new home.

Save Our Homes: the cap that does the heavy lifting

Save Our Homes is the reason long-time Florida owners often pay a fraction of what their new neighbors pay. Once your homestead is in place, your assessed value can't rise more than 3% a year or the change in CPI, whichever is lower. For 2026, that cap is 2.7%.

Florida voters approved Save Our Homes in 1992, and it took effect in 1995. It kicks in the year after your homestead is first granted, so your first year sets the starting point at full market value.

Here's what that looks like on a $1,000,000 home in a rising market:

That growing gap between market and assessed value is your Save Our Homes benefit. In a market like ours, it adds up quickly.

A few things to keep in mind:

•         The cap limits your assessed value, not your tax bill. If your city raises its millage rate, your bill can still go up.

•         Improvements like a new pool or an addition are added at full value on top of the cap.

•         When a homestead sells, the cap and exemption come off at the end of that year, and the next owner starts fresh at market value.

Portability: your savings can move with you

If you already own a homestead somewhere in Florida, portability lets you take your Save Our Homes benefit with you, up to $500,000, when you buy your next primary home in the state. For buyers moving from Miami or downsizing within Palm Beach County, this can be worth thousands of dollars a year.

How it works:

•         You need to establish your new homestead on or before January 1 of the third year after leaving the old one.

•         You file for portability by March 1, at the same time you file homestead on the new home. Both can be filed together online.

•         Buying a more expensive home? You can carry the full benefit, up to $500,000.

•         Buying a less expensive home? You carry a percentage of the benefit based on the price difference.

•         If the old home was jointly owned, every owner has to move out of it for the benefit to transfer.

Here's a simple example. Say your current Boca home has a market value of $900,000 and an assessed value of $600,000. That's a $300,000 benefit. You buy a $1,500,000 home in Delray. In your first homestead year, your assessed value starts at $1,200,000 instead of $1,500,000.

One important note for my New York, New Jersey and Boston buyers: portability only moves between Florida homesteads. Your tax history up north doesn't come with you, so you start fresh here.

Second homes and rentals: no homestead, and a different cap

Homestead is only for your one permanent primary residence. If you're buying a winter home and keeping your main residence up north, or buying an investment property, you won't qualify.

Those properties get a 10% cap instead. Assessed value can't rise more than 10% a year, and there's nothing to apply for. Two things to know:

•         The 10% cap only applies to non-school taxes. School taxes are based on full market value every year.

•         A sale or change in ownership resets the value back to market.

If you're buying a second home, I always recommend budgeting for taxes at full market value and expecting them to climb faster than a homesteaded neighbor's.

Why your taxes jump the year after you buy

This is the conversation I have most often, and it's why I never let a buyer budget off the seller's tax bill.

When someone has owned and homesteaded a home for years, Save Our Homes may have kept their assessed value far below market. The moment that home sells, the cap and exemption come off at the end of the year. The following January, the Property Appraiser resets the assessed value to full market value, which is usually close to what you paid.

So if you close in 2026, your 2026 bill still reflects the seller's taxes. Your first true bill arrives in November 2027. On a home the seller owned for 15 or 20 years, the difference can be several thousand dollars a year.

The better way to budget: start with your purchase price, subtract the exemptions you'll qualify for, and multiply by the local millage rate. The Palm Beach County Property Appraiser has a free tax estimator that does this for you, and I run it with my buyers before we write an offer.

Property taxes and insurance are the two biggest carrying costs in South Florida. Before you write an offer, read How to Save Thousands a Year on Florida Homeowners Insurance in 2026 so you can budget for both.

How to apply for homestead in Palm Beach County

You only apply once. After that, it renews automatically every year as long as you still qualify.

1.    Own and live in the home by January 1. It needs to be your permanent residence on January 1 of the year you're applying for.

2.    Get your Florida paperwork in order. Have the documents listed above ready, including your Florida driver's license and at least one more proof of residency. Switch your out-of-state documents as soon as you move.

3.   File by March 1. Apply online through the Palm Beach County Property Appraiser's e-file system, in person at one of their five service centers (addresses below), or by mailing the state form DR-501. If you're bringing a benefit from another Florida home, include portability in the same application.

4.   Check your TRIM notice in August. Your homestead should show up there. If anything looks off, call the Property Appraiser's Exemption Services.

The March 1 deadline also applies to portability and additional exemptions, like the senior, widow or widower, and veteran exemptions.

A timing tip I share with every relocation client: if you close and move in on December 15, you can file for homestead for the very next year. Close on January 3, and you'll wait almost an extra year for it.

Other exemptions you might qualify for

Once you have homestead, you may be eligible for additional exemptions on top of it. These are the most common ones, based on the Palm Beach County Property Appraiser's 2026 guide:

A few local details worth knowing:

•      The county's senior exemption only applies to county taxes. Some cities add their own, and Delray Beach offers an additional $25,000 senior exemption for those who qualify.

•       Delray Beach and Boynton Beach also offer a "super senior" exemption for qualifying seniors who have owned and lived in a home worth under $250,000 for at least 25 years.

•      Veterans can get help from Palm Beach County Veteran Services.

If you're 55 or older and weighing an active adult community, my guide to the best 55+ communities in Delray Beach walks through Kings Point, Lakes of Delray, Villa Borghese and more.

All of these share the same March 1 filing deadline as homestead.

Paying your property tax bill (and saving up to 4%)

The Palm Beach County Tax Collector mails bills by November 1, and payment is due by March 31. Here's the part most newcomers don't know: Florida rewards you for paying early.

According to the Tax Collector, more than 70% of Palm Beach County bills are paid in November to grab the full 4%. On a $25,000 tax bill, that's $1,000 back in your pocket for paying a few months early. Taxes not paid by March 31 become delinquent on April 1.

If you'd rather spread it out, the Tax Collector offers an Installment Payment Plan with four quarterly payments due in June, September, December and March. You have to sign up by April 30 for that tax year, and once enrolled, you stay in automatically.

You can pay online by free eCheck or by card (a processing fee applies), by mail, or in person. In-person service at Tax Collector offices is by reservation only.

One more thing for buyers: if you have a mortgage with an escrow account, your lender usually pays the bill for you. Your title company will also prorate the current year's taxes between you and the seller at closing.

What to do if you disagree with your value

Every August, the Property Appraiser mails a Notice of Proposed Taxes, also called a TRIM notice. It shows your market value, assessed value, exemptions and an estimate of your upcoming bill. Read it as soon as it arrives.

If you think your market value is too high, start by calling the Property Appraiser. Many issues get resolved with a conversation. If not, you can file a petition with the Palm Beach County Value Adjustment Board. The deadline to appeal market values is in mid-September, and the exact date is printed on your TRIM notice.

If your homestead or another exemption is denied, you'll get a denial notice around July 1. The deadline to appeal an exemption denial is July 31, or 30 days after the notice is mailed.

Where to go: local offices

The Property Appraiser handles values and exemptions. The Tax Collector handles the bill and payments. Here's where to find them.

Palm Beach County Property Appraiser (homestead, portability, exemptions, values)

Palm Beach County Tax Collector (tax bills, payments, installment plan, driver's licenses)

The Delray Beach Tax Collector office also handles Florida driver's licenses, which you'll need before you file for homestead.

Key dates at a glance

Amendment 3: the homestead vote on November 3, 2026

There's a big change on the ballot this year. Amendment 3 would raise the homestead exemption on non-school taxes to $150,000 in 2027 and $250,000 in 2028, then adjust it for inflation after that. It needs 60% of the vote to pass. If it does, it takes effect January 1, 2027. If it doesn't, nothing changes.

The Florida Legislature placed it on the ballot during a June 2026 special session. A judge later found the original ballot wording misleading, so the attorney general rewrote it. You'll see it on your ballot as "Increased Homestead Exemption; Lower Cap on Increases in Non-Homesteaded Property Assessments."

Why this matters if you're relocating: under the amendment, people who are permanent Florida residents by December 31, 2026 would qualify for the larger exemption, even if they buy their home later. Anyone who becomes a resident on or after January 1, 2027 would wait four years of homestead before the bigger exemption kicks in.

A few other things worth knowing:

•         It wouldn't eliminate your tax bill. School taxes stay, and so do non-ad valorem charges like trash and stormwater fees.

•         It doesn't lock in tax rates. Cities and the county could still raise millage rates.

•         It would let the Legislature create a process for local governments to exempt even more homestead value down the road.

•         It would limit how counties and cities can spend property tax revenue to specified core services.

Supporters see it as real relief for homeowners facing rising bills. Critics, including some local governments, are concerned about service cuts or higher millage rates to fill the gap. If you're planning a move and your timing is flexible, talk with a tax professional about when to establish residency. I'll update this post once the results are in.

Frequently asked questions

What are property taxes in Palm Beach County? Most Palm Beach County homes pay a combined rate of roughly 16 to 21 mills, or about 1.6% to 2.1% of taxable value, depending on the city. Boca Raton's city rate is lower than Delray Beach's or West Palm Beach's.

What is the Florida homestead exemption? It's a property tax break for your permanent primary residence. For 2026, it reduces your taxable value by up to $51,411 and activates the Save Our Homes cap.

How much does Florida homestead save me on taxes? The exemption alone saves most owners about $750 to $1,000 a year, according to the Palm Beach County Property Appraiser. The Save Our Homes cap usually saves far more over time.

What is Save Our Homes in Florida? It's a constitutional amendment approved in 1992 that limits how much a homestead's assessed value can rise each year. It starts the year after you first receive homestead.

What is the Save Our Homes cap? The cap is 3% or the change in CPI, whichever is lower. For 2026, it's 2.7%.

How do I apply for the Florida homestead exemption? Own and live in the home as your permanent residence on January 1, then file with the Palm Beach County Property Appraiser by March 1. You can apply online, in person or by mail.

Can I keep my Florida homestead exemption if I move to a new home? The exemption itself doesn't transfer, so you reapply on your new home. You can bring your Save Our Homes savings with you through portability.

What is portability in Florida homestead? Portability lets you transfer up to $500,000 of Save Our Homes benefit from your old Florida homestead to a new one. You need to establish the new homestead by January 1 of the third year after leaving the old one, and file by March 1.

Do rental and second homes get homestead? No. Only your one permanent primary residence qualifies. Rentals and second homes get the 10% non-homestead cap instead.

What is the 10% assessment cap for non-homestead properties? It limits yearly increases in assessed value on rentals, second homes and commercial property to 10% for non-school taxes. School taxes are still based on full market value.

Will my property taxes go up when I buy a home? In most cases, yes. When a home sells, the cap and exemption reset, so your taxes are based on current market value rather than the seller's lower assessed value.

Why did my property taxes jump the year after I bought? Your first bill reflected the seller's capped value and exemptions. The following January, the Property Appraiser reset the assessed value to market, so your bill caught up to the home's actual value.

Is there a Florida ballot measure to raise the homestead exemption in 2026? Yes. Amendment 3 is on the November 3, 2026 ballot and needs 60% of the vote to pass. It would raise the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, with a waiting period for people who become Florida residents in 2027 or later.

When are property taxes due in Palm Beach County? Bills are mailed by November 1 and must be paid by March 31. Paying in November gets you a 4% discount, then 3% in December, 2% in January and 1% in February.

Where is the Property Appraiser's office near Delray Beach and Boca Raton? The South County Service Center is at 14925 Cumberland Drive, Delray Beach, FL 33446. You can reach it at 561-276-1250, or file online at pbcpao.gov.

What documents do I need to file for homestead in Palm Beach County? Social Security numbers for all owners and spouses, a Florida driver's license or ID, and at least one more proof of residency, such as Florida vehicle or voter registration. Non-citizens also need proof of permanent residency.

Can I get homestead if I still have a STAR exemption in New York? No. You can't hold a residency-based tax benefit in another state, including New York's STAR or Enhanced STAR, and claim Florida homestead at the same time.

What happens if I miss the March 1 deadline? Under Florida law, missing it means you waive the exemption for that year. You can still file for the following year.

Thinking about a move to Palm Beach County?

Property taxes are one of the biggest pieces of your monthly cost here, and they can swing by thousands of dollars depending on the city, the street and how long the seller owned the home. Before any of my buyers write an offer in Delray Beach, Boca Raton or anywhere in Palm Beach County, I run a real tax estimate on that specific home so there are no surprises in November. If you're planning a move, I'm happy to do the same for you.

Still deciding where to land? Start with Is Delray Beach a Good Place to Live? 10 Reasons People Are Moving Here and East, Central and West Delray Explained.

Rachel Williams | Real Estate Advisor and REALTOR

The Premier Group at Compass

Serving Delray Beach • Boca Raton • Palm Beach County

561-900-5477

rachsellsfl.com

403 N Swinton Ave Delray Beach, FL 33444