Why Did My Property Taxes Increase After Buying a Home?
If you recently purchased a home in Florida and your property taxes increased, you are not alone. Many buyers are surprised when the tax bill changes after closing.
In many cases, the increase happens because the property is reassessed after the sale, previous exemptions may no longer apply, and the new owner may not yet have Homestead Exemption in place.
Why Property Taxes Can Go Up After a Home Purchase
When a property changes ownership, the county property appraiser may reassess the home based on its current market value. This can cause the assessed value and taxable value to increase, especially if the previous owner had owned the home for many years.
Common reasons property taxes increase after buying a home include:
- The property was reassessed after the sale
- The previous owner’s Homestead Exemption was removed
- The previous owner benefited from the Save Our Homes cap
- The purchase price was higher than the prior assessed value
- The home was new construction or recently improved
- The property is not being used as the new owner’s primary residence
The Previous Owner’s Tax Bill May Not Be Your Future Tax Bill
One of the biggest mistakes buyers make is assuming the seller’s current property tax bill will be the same after closing.
In Florida, the previous owner’s exemptions and assessment limits may not transfer to the buyer. If the seller had Homestead Exemption for many years, their taxable value may have been kept lower than the home’s current market value.
After the sale, the property may be reassessed, which can result in a higher tax bill for the new owner.
Before buying, it is helpful to review the property’s tax records using our Lake County Property Tax Lookup guide.
What Is Homestead Exemption?
Florida’s Homestead Exemption can reduce the taxable value of a primary residence and may also provide assessment limitations under Florida’s Save Our Homes rules.
However, Homestead Exemption does not automatically transfer from the seller to the buyer.
If you qualify, you generally need to apply for Homestead Exemption after purchasing your home and making it your primary residence.
What Is the Save Our Homes Cap?
The Save Our Homes cap limits how much the assessed value of a homesteaded property can increase each year. This can create a large difference between the home’s market value and taxable value over time.
When a home is sold, that cap may be reset for the new owner. This is one of the main reasons buyers may see a property tax increase after purchasing a home.
How Property Taxes Are Handled at Closing
In many Florida real estate closings, property taxes are prorated between the buyer and seller. The seller is typically responsible for taxes through the day of closing, and the buyer is responsible after that date.
Your title company calculates these prorations as part of the settlement process.
Learn more about Florida closing costs and how taxes can affect your final settlement statement.
How Buyers Can Estimate Future Property Taxes
Before making an offer, buyers should avoid relying only on the seller’s current tax bill. Instead, they should review property records, exemptions, assessed value, taxable value, and any available tax estimator tools.
Helpful steps include:
- Search the property’s current tax records
- Check whether the seller has Homestead Exemption
- Compare market value, assessed value, and taxable value
- Ask about recent improvements or new construction
- Discuss estimated taxes with your Realtor, lender, or closing team
How Sol Title Helps
At Sol Title, we help buyers, sellers, Realtors, lenders, and investors throughout Central Florida navigate the closing process with confidence.
Our team reviews settlement statements, calculates tax prorations, coordinates title work, and helps keep your closing moving smoothly. We even incorporate short explanation videos that educate the public about title issues. Find our property tax video HERE.
Related Property Tax Resources
- Lake County Property Tax Lookup
- Florida Homestead Exemption Guide
- Property Tax Proration at Closing
- Assessed Value vs. Market Value
- Florida Seller Net Sheet Calculator
Areas We Serve
- Lake County Title Company
- Clermont Title Company
- Minneola Title Company
- Groveland Title Company
- Montverde Title Company
- Howey-in-the-Hills Title Company
- Tavares Title Company
- Mount Dora Title Company
- Eustis Title Company
- Leesburg Title Company
- Lady Lake Title Company
Frequently Asked Questions
Why did my property taxes go up after buying a house?
Your property taxes may increase because the home was reassessed after the sale, the previous owner’s exemptions were removed, or the Save Our Homes cap was reset.
Does the seller’s Homestead Exemption transfer to me?
No. Homestead Exemption does not automatically transfer from the seller to the buyer. Eligible new homeowners must apply for their own exemption.
Can property taxes increase after closing?
Yes. The taxes shown at closing may be based on the prior owner’s tax bill. Future tax bills may change after reassessment.
Are property taxes prorated at closing in Florida?
Yes. Property taxes are commonly prorated between the buyer and seller as part of the closing settlement.
How can I estimate future property taxes before buying?
You can review county property tax records, check exemption status, compare assessed and taxable values, and ask your Realtor, lender, or title company for guidance.