Quick Answer: Florida has no state income tax, but property taxes are real. As a new buyer in St. Johns County, your taxes will be based on the purchase price — not what the prior owner paid. Once you establish primary residency, homestead exemption and the Save Our Homes cap provide meaningful long-term protection. Here’s how it all works.
The Good News First
Florida has no state income tax. For buyers moving from New Jersey, New York, Connecticut, Massachusetts, or California — states where income taxes can run 6–13% — this is not a small thing. It’s one of the most significant financial changes for relocating buyers and it compounds meaningfully over time.
Property taxes are still real. But the overall tax picture for most buyers who move to Florida from a high-tax state is dramatically better.
How Florida Property Taxes Work
Property taxes in Florida are based on the assessed value of your home, multiplied by the millage rate for your county and municipality.
The millage rate is the tax rate expressed in mills (one mill = $1 per $1,000 of assessed value). St. Johns County’s millage rate is competitive compared to other Florida counties — and notably lower than many counties in the Northeast.
The New Buyer Problem: The Assessment Reset
Here’s what catches out-of-state buyers off guard.
When a long-term Florida homeowner sells their home, they may have been paying taxes on an assessed value far below the current market value. That’s because of the Save Our Homes cap — a Florida constitutional protection that limits annual increases in assessed value to 3% (or the rate of inflation, whichever is lower) for homesteaded properties.
When you buy that home, the Save Our Homes cap doesn’t transfer to you. Your assessed value resets to the purchase price. If the prior owner had owned the home for 15+ years, the gap between their assessed value and what you pay can be substantial.
What this means: The tax bill you see in a listing or on Zillow reflects what the current owner is paying. Your taxes as the new buyer will likely be higher — sometimes significantly. I always run the projected tax estimate for buyers before they finalize their budget.
Homestead Exemption
Once you establish Florida as your primary residence, you can apply for homestead exemption. This provides:
- A $25,000 reduction in assessed value for all taxing authorities
- An additional $25,000 reduction for all taxing authorities except school taxes
- Protection under the Save Our Homes cap going forward (annual increases capped at 3%)
To qualify, the property must be your primary residence as of January 1st of the tax year. You apply through the St. Johns County Property Appraiser’s office.
Important: You must apply. It doesn’t happen automatically. And you don’t receive it for the year you purchase — you apply by March 1st of the following year for that year’s tax bill.
Portability
If you’re already a Florida homeowner elsewhere in the state and you’re moving to St. Johns County, you may be able to port your Save Our Homes benefit to your new home. This can reduce the assessed value on your new property, which reduces taxes.
The amount of portability benefit you can transfer depends on the difference between your prior home’s assessed value and its market value. Portability must be applied for within three years of leaving your prior homesteaded property.
If this applies to you, it’s worth running the math before you buy.
CDD Fees on Your Tax Bill
This is worth repeating because it confuses many buyers. In communities with a Community Development District (CDD), you’ll see a separate line on your property tax bill for CDD assessments. These are not property taxes in the traditional sense — they’re repayment of infrastructure bonds — but they appear on the same bill and are real annual costs.
Never look at a tax estimate for a CDD home without confirming whether the CDD fee is included in that number.
The Bottom Line
Florida’s overall tax environment is genuinely favorable for most buyers relocating from the Northeast or California. The lack of state income tax is real money. Property taxes are real too, and the assessed-value reset at purchase is something to plan for.
My job is to help you understand the true annual tax cost of any specific home before you make an offer. No surprises after closing.
Reach out to Josh Rogers with the F3 Home Team at StJohnsWithJosh.com/contact with any questions.
