Florida's homestead exemption removes $50,000 from the assessed value of your primary residence for property tax purposes ($25,000 base plus a second $25,000 exemption that excludes school district taxes). You must own and occupy the home as your primary residence on January 1 and file an application with your county property appraiser by March 1. The exemption is not automatic.

Save Our Homes limits annual increases in the assessed value of homesteaded properties to 3% or the inflation rate, whichever is lower. This cap stays in place as long as you keep the homestead, so long-term Florida owners often pay property tax on a small fraction of the home's market value. When you sell and buy a new Florida home, you can 'port' up to $500,000 of this accumulated savings to the new property through a process called homestead portability.

Florida averages around $4,000 per year for homeowners insurance, the highest in the US. Hurricane risk is the primary driver. Private carriers including Progressive, Farmers, and AAA have restricted new policies or exited markets entirely. Citizens Property Insurance Corporation, the state-run insurer of last resort, now covers over 1.2 million policies. In coastal zip codes, insurance can exceed $8,000 per year. Always get an actual quote before committing to a Florida purchase.

Florida charges a documentary stamp tax on deeds at $0.70 per $100 of purchase price (about 0.70%). There is also an intangible tax on new mortgages at $2.00 per $1,000 of the loan amount. Miami-Dade County has a slightly higher documentary stamp rate. These are typically paid by the seller but can be negotiated; confirm your obligation in your purchase agreement.

The statewide average is 0.91%, but rates vary by county. Broward, Miami-Dade, and Palm Beach counties average around 1.1%, while rural counties can be below 0.8%. Remember that new buyers pay property tax on the full purchase price in year one; Save Our Homes cap only applies from year two onward after the homestead is established.