How can I minimize my property taxes?
There are several things that you can do to keep your tax bill as low as possible. Exemptions reduce the assessed value of your property, thereby reducing the amount of property tax you pay. If your property is your permanent residence, or homestead, you may be eligible for a tax exemption. Several types of exemptions are available. Learn more about tax exemptions.
What can my elected officials do to lower my taxes?
City Council is responsible for the millage rate for only two lines on your bill: City of Port St. Lucie and City of PSL Voted Debt, which was voter approved to pay for the Crosstown Parkway. That’s only 22% of your total tax bill. Over the past ten years, the City’s millage has decreased from 6.6289 in the FY 2015/16 to 4.9750 for FY 2025/26.
City Council cannot influence the other taxing authorities that make up the 14 other lines items on your tax bill.
What are Ad Valorem Tax Rates?
Tax Authorities, such as city, county commission, water management district, school board and special districts are responsible for setting property tax rates. They hold advertised public hearings, where the public is invited to speak on the proposed tax rate. Learn more about Property Tax information for Taxpayers.
What is the millage rate?
The millage rate is your property tax rate, which is the rate of tax per thousand dollars of taxable value, this would equate to a resident paying $5.06 in taxes for every $1,000 of taxable property taxes. The budget approved by the City Council this year included a millage rate reduction for the eighth year in a row. But tax bills can be complicated and despite that effort, your overall tax bill may have gone up. That could be the result of several factors including:
- your property value may have increased
- or another taxing authority could have changed
- or increased its millage rate.
How do PSL property taxes work?
(PDF, 1MB) Property taxes are based on the assessed value of a homeowner’s property. Every year, the St. Lucie County property appraiser issues an assessed value for your home. That, minus exemptions, equals your taxable value. A major exemption in Florida is the Homestead Exemption, which is up to $50,000 on a primary residence. There also are property tax discounts based on age, disability or veteran status.
Florida’s Save Our Homes provision allows you to transfer all or a significant portion of your tax benefit, up to $500,000, from a home with a homestead exemption to a new home within the state that qualified for a homestead exemption. If you and your neighbor have almost identical homes – but pay significantly different tax bills – those could be the reasons why.
How can I estimate future taxes on a new home?
Property taxes are determined by multiplying the property's taxable value by the millage rate set each year by the taxing authorities.
The basic formula is:
- Just/Market Value limited by the Save Our Homes Cap or 10% Cap = Assessed Value
- Assessed Value - Exemptions = Taxable Value
- Taxable Value x Millage Rate / 1,000 = Total Taxes
Why do my taxes change year from year?
If your property value has increased or any other taxing authorities charged their rates, your tax bill will change from year to year. Because each year's property value stands alone, it is difficult to estimate taxes before annual property values and millage rates are established. A property's value is not based solely on the specific purchase price of that property. Value is a reflection of the market. When sale prices decline, so do values, and conversely when sale prices increase, so do values. An arms-length sale price is one component used, along with other market information, such as comparable sales, to help establish values.
Why are my taxes different from the previous owner’s?
Many first-time Florida homeowners are surprised when their tax bills are higher than the tax bills of the previous owner(s) or their neighbor(s). When the property changes ownership, Florida law requires the property appraiser to remove exemptions and reassess the property, so the assessed value equals the just value. This takes effect on January 1 after you purchase the property.
The previous owner’s exemption and SOH benefit stay with the property for the remainder of the tax (calendar) year in which you purchase your home, so your first tax bill will reflect the previous owner’s benefits if you bought the home before he or she paid that year’s tax bill. If you owned property on January 1 and apply for the homestead exemption by March 1, your tax bill for the year will reflect the reduction in taxable value, but the SOH benefit will not take effect until the following year.
For example, you bought your home in September last year. The previous owner owned the home for 12 years and had the homestead exemption. The assessed value for last year was $110,000, and the taxable value was $60,000. After the property appraiser reassessed your home as of January 1 this year, the assessed value increased to $130,000. You applied for and received the homestead exemption, which lowered your taxable value to $80,000, an increase in your tax liability over the previous year. Next year, the SOH benefit will take effect, so your assessed value cannot increase more than 3 percent ($3,900).