Florida Rental Property Taxes: What Investors Actually Pay in 2026
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Florida gives investors a genuine gift, no state income tax, and takes its share through property tax. The trap is that the friendly-sounding caps don't cover your rental, and a purchase resets the bill to market value.
How high are property taxes on a Florida rental?
Start with the good news: Florida has no personal state income tax, so the state takes nothing from your rental profit (the IRS still does, and your CPA runs that). The property-tax side is where Florida collects, and it carries a trap for investors. Published effective rates run roughly 0.75% to 0.85% in the big counties (2025 tax year, varies by county), but treat that number skeptically, because those figures reflect capped incumbent assessments held down for years. When you buy, the assessment resets to just value, and your rental gets none of the homestead benefits, so a new investor's first-year bill routinely runs well above what the advertised effective figure implies. We model the reset number, not the seller's old bill, inside your DSCR ratio.
The 10% cap: permanent, but not for everything
Florida's non-homestead assessment cap under §193.1554 limits annual assessment increases on non-homestead residential property to 10% a year, and unlike the Texas circuit breaker that expires after 2026, Florida's cap is permanent and written into the state constitution. Two limits matter for investors. First, the cap applies to all levies other than school district levies, so the school portion of your bill is never capped and can rise with the market every year. Second, none of the homestead protections transfer to a rental: not the exemption of up to $50K, not the 3% Save Our Homes cap, not portability. The assessment also resets to just value on any sale, and on a cumulative transfer of more than 50% of the interests in the entity holding title, which is the trap covered in the LLC guide.
Amendment 3: the November 2026 vote that could cut the cap
The 10% cap could get better. Amendment 3, placed on the November 2026 general-election ballot, would lower the non-homestead assessment cap from 10% to 5% (alongside a larger homestead exemption). It needs 60% approval to pass, and as of July 2026 the vote is still pending, so treat a 5% cap as possible upside rather than a current rule. If you're modeling multi-year hold economics, run the numbers at 10% and treat a passing Amendment 3 as a bonus. We'll re-check every property-tax figure on this site after the November 2026 election.
What are doc stamps, and who pays them in Florida?
Florida charges documentary stamp tax on the deed when property changes hands: $0.70 per $100 of the price statewide. Miami-Dade is the exception, and it runs backwards from what people assume: the deed rate there is $0.60 per $100, cheaper than the rest of the state for a single-family home, but a $0.45 per $100 surtax applies to transfers of anything other than a single-family residence, so multifamily and commercial deeds run higher there. On top of the deed tax, the loan itself carries note doc stamps and the intangible tax covered in the cash-out guide. None of it is a state income tax, because Florida has none.
TRIM notices and your appeal
Every owner, investor included, can challenge the assessed value. Property appraisers mail Truth in Millage (TRIM) notices in August, and the petition deadline to the Value Adjustment Board is 25 days after the TRIM mailing. Bring closing statements, rent rolls, and repair bids. On portfolio scale, an annual review habit is real money, because a few hundred dollars of monthly tax inside PITIA can be the difference between a ratio that clears 1.0 and one that doesn't. Portfolio-wide tax strategy belongs to your CPA; the financing consequences belong to us.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
How high are property taxes on a Florida rental property?
Published effective rates run roughly 0.75% to 0.85% in the big counties (2025 tax year), but that understates a new buyer's bill: on a sale the assessment resets to just value with no homestead benefits. There's no state income tax on the rental income, but the property-tax reset is the number to model, not the seller's old bill.
Does Florida's 10% cap protect my rental from tax increases?
Partly. The §193.1554 non-homestead cap limits assessment increases to 10% a year and is permanent and constitutional, but school levies are never capped, and it resets to just value when you buy. No homestead benefits (the $50K exemption, the 3% Save Our Homes cap, portability) apply to a rental. Amendment 3 (Nov 2026) could cut the cap to 5%.
What are doc stamps and who pays them in Florida?
Deed documentary stamp tax is $0.70 per $100 of price statewide. Miami-Dade is cheaper for houses at $0.60 per $100, but adds a $0.45 per $100 surtax on anything other than a single-family residence. The loan carries separate note doc stamps and intangible tax. Florida has no state income tax on the rental income itself.
Can I appeal my Florida rental's assessed value?
Yes: investors hold the same rights as homeowners. Property appraisers mail TRIM notices in August, and you petition the Value Adjustment Board within 25 days of the mailing. Closing statements, rent rolls, and repair estimates are effective evidence, and a lower assessment lowers the tax line inside your PITIA payment.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or insurance advice. City and county STR rules, tax figures, and insurance requirements change; verify current requirements with the city, your association, your CPA, or a Florida real estate attorney before you buy. Loans are subject to buyer and property qualification.