Why the Property Taxes You See on a Florida Listing May Not Be the Taxes You Pay
If you're shopping for a home in Florida, there's one number on a real estate listing that I have always cautioned buyers to look at very carefully: the current owner's property taxes.
Why?
Because those taxes belong to the current owner and their particular tax situation. They are not necessarily an indication of what you will pay after purchasing the property.
Florida has now taken steps to make that distinction much clearer for buyers.
As part of HB 7031-E, enacted in 2026, Florida is changing how estimated property taxes are presented on public-facing online real estate listing platforms. Beginning February 1, 2027, residential properties displayed on these platforms will be subject to new requirements designed to give prospective buyers a more realistic picture of potential property taxes.
For Florida buyers, particularly those relocating from another state or purchasing a second home, this is an important change.
Why the Seller's Current Property Tax Bill Can Be Misleading
Florida property taxes can be a little confusing when you're accustomed to another state's system.
A homeowner who has owned a property for many years may have an assessed value that is substantially below the property's current market value. If it is their primary residence, they may also benefit from Florida's Homestead Exemption, Save Our Homes assessment limitations, portability or other exemptions.
Those benefits generally relate to the current owner's circumstances.
When the property changes ownership, the property can be reassessed.
That means a home showing a relatively low annual tax bill online could potentially have a substantially different tax obligation for its new owner.
This becomes particularly important in appreciating luxury markets.
Imagine looking at a Marco Island waterfront home that was purchased many years ago for significantly less than its current value. The existing owner's property taxes may reflect years of assessment limitations.
If you purchase that home today at its current market value, simply using the seller's tax bill to calculate your future cost of ownership could significantly underestimate your potential property taxes.
What Is Florida Changing?
Under the newly enacted legislation, public-facing online real estate listing platforms will have new requirements for displaying estimated ad valorem property taxes beginning February 1, 2027.
When a platform provides a property tax estimate or buyer payment calculator, it cannot use the current owner's assessment or current property taxes to calculate the buyer's estimated taxes.
Instead, estimates may be calculated using methods such as the property's listing price combined with current millage rates and state-provided data and formulas.
The law also contemplates directing buyers to the appropriate county property appraiser's tax estimator or website rather than presenting the seller's existing tax bill as though it represents the buyer's future obligation.
The goal is simple:
Give buyers a more realistic starting point for understanding the potential cost of owning the property after the sale.
What About the Seller's Previous Property Taxes?
Historical property tax information isn't necessarily disappearing entirely.
When a platform uses the prescribed estimation methodology, previous tax information may still be displayed as historical tax information.
That's an important distinction.
Historical taxes can tell you something about the property's history, but they should not automatically be treated as a projection of the next owner's taxes.
In certain situations under the new law, listing platforms that do not provide an estimate must instead direct consumers to the county property appraiser and restrict how the current and prior tax information is displayed.
For buyers, the larger message remains the same:
Historical taxes and estimated future taxes are two very different things.
What Florida Buyers Should Do Instead
When I'm helping buyers evaluate property in Marco Island and Naples, I want them looking beyond the headline numbers on a listing.
Property taxes should be evaluated based on the prospective purchase price and the buyer's individual circumstances.
For a property in Collier County, buyers can use the Collier County Property Appraiser's resources to estimate potential taxes based on a contemplated purchase.
Even then, an estimator is exactly that: an estimate.
Actual taxes can be affected by the property's assessed value, millage rates, exemptions, non-ad valorem assessments and other factors.
For buyers purchasing a second home or investment property, understanding this is particularly important because they may not qualify for the same exemptions or assessment protections as a Florida homesteaded property owner.
Why This Matters in the Marco Island Luxury Market
This issue can become even more significant at the luxury level.
Marco Island has properties that have remained in the same family or ownership for decades. We also have older homes sitting on extraordinarily valuable waterfront land, properties that have undergone major improvements and newly constructed homes replacing much older residences.
The current tax bill does not always tell the full story.
On a multimillion-dollar purchase, the difference between looking at the seller's historical taxes and properly estimating the buyer's future taxes can materially affect the annual carrying costs of the property.
This is exactly why local market knowledge matters.
Buying waterfront property isn't simply about finding a beautiful house. Buyers need to understand elevation, flood insurance, seawalls, boating access, exposure, construction, assessments, property taxes and how all of those factors affect the long-term cost and value of ownership.
A Positive Change for Florida Homebuyers
I view Florida's new disclosure requirement as a positive step toward greater transparency.
Online real estate platforms have made it incredibly easy to browse properties, but the information presented on a listing still requires context.
A tax number without context can be misleading.
By focusing buyers on an estimated tax obligation based more closely on today's property value rather than the current owner's individual tax history, Florida is helping consumers make more informed purchasing decisions.
And informed buyers make better real estate decisions.
Planning to Buy on Marco Island or in Naples?
If you're considering purchasing a home in Marco Island or Southeast Naples, understanding the property's true cost of ownership is just as important as understanding its purchase price.
My approach is to help buyers evaluate the entire picture, from property taxes and insurance considerations to waterfront characteristics, construction quality, resale potential and the nuances that can dramatically affect value from one property to another.
The home search is only part of the process. Understanding what you're actually buying and what it will cost to own it is where experienced representation becomes invaluable.
About Devin Sweazy
Devin Sweazy is a Marco Island Realtor with Premier Sotheby's International Realty specializing in luxury and waterfront real estate throughout Marco Island and Southeast Naples. A Marco Island resident since 2014, Devin combines hyper-local market knowledge with a data-driven approach to helping buyers and sellers make informed real estate decisions.
With more than $100 million in career sales volume, Devin ranks among the Top 1.5% of Realtors nationwide according to RealTrends and has been recognized among Naples Real Producers' Top 250 agents.
To learn more about buying or selling real estate on Marco Island and in Naples, visit DevinSweazyGroup.com.
