It's one of the most common questions at a Florida closing: who actually pays the property taxes? The short answer is that both sides do — each pays for the slice of the year they owned the home — and the split is handled through proration on your closing statement. Here's how it works, why it trips people up, and how to avoid a surprise on next year's tax bill.
Understanding this before you sign protects your bottom line, whether you're buying or selling. Want the exact numbers for your deal? Run them on our Florida property tax proration calculator or the property tax estimator.
- In Florida, property taxes are paid in arrears, so they're split (prorated) between buyer and seller at closing.
- The seller credits the buyer for the seller's share of the year; the buyer then pays the full November tax bill.
- If the current year's bill isn't out yet, most contracts prorate on the prior year's taxes.
- Budget for a higher bill next year — the Save Our Homes cap resets when the home sells.
Florida property taxes are paid “in arrears”
Florida assesses property taxes as of January 1, but you don't pay them until the bill comes out around November 1 of that same year — that's what “in arrears” means. Pay early and you get a discount (4% in November, down to 1% in February); taxes become delinquent on April 1 of the following year.
Because the bill isn't due until late in the year, a home often sells before anyone has paid that year's taxes. Proration is simply how the closing agent makes sure the seller pays for the part of the year they owned the property, and the buyer pays for the rest.
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How proration works at the closing table
The seller owned the home from January 1 up to the closing date, so the seller owes taxes for those days. Since the buyer will receive and pay the full November bill, the seller credits the buyer for the seller's share at closing (a debit to the seller, a credit to the buyer). The buyer then pays the entire bill when it arrives.
💡 Quick example: If the annual tax is $6,000 and closing is on July 1 (roughly halfway through the year), the seller credits the buyer about $3,000. The buyer later pays the full $6,000 bill — but has already been reimbursed for the seller's half.
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Which year's taxes are used?
If the current year's tax bill is already out, the closing agent uses it. If it isn't, most Florida contracts (including the standard FAR/BAR forms) prorate based on the prior year's taxes, taking the maximum discount. Some contracts include a re-proration clause so the parties true-up once the actual bill is issued — worth asking about on new construction or recently improved property, where the assessed value can change a lot.
The trap: your taxes can jump next year
This is the part that surprises buyers. Florida's Save Our Homes cap limits how fast a homesteaded property's assessed value can rise — but that cap resets when the home sells. The property is reassessed at market value for the next tax roll, so your first full-year bill as the new owner can be meaningfully higher than the seller's was. Don't budget off the seller's old taxes; budget off the reassessed value.
⚠️ The homestead exemption does not transfer with the sale. If the home is your primary residence, you must reapply for homestead with the county property appraiser (generally by March 1) to get the exemption and the Save Our Homes cap going forward.
Don't forget non-ad valorem items
Your Florida tax bill can also include non-ad valorem assessments — things like CDD (Community Development District) bonds, solid waste, or lighting districts — that aren't based on your home's value. These are prorated the same way and, in new-construction communities, can add up. A clean title search and payoff review makes sure nothing is missed at closing.
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General information, not tax or legal advice. Discount percentages, deadlines, and proration methods can vary by contract and county; confirm specifics with your closing agent and county property appraiser. Estimate your numbers with our proration calculator.
