Every year, northern buyers wander into Florida expecting property taxes to follow the same logic as their home states. Then they discover portability, Save Our Homes caps, CDD fees, exemptions stacked like pancakes, and taxable values that don’t match the Zillow estimate they saw over breakfast.
This guide unravels how property taxes really work in Collier and Lee Counties so buyers can plan confidently, avoid surprises, and understand their true cost of ownership.
1. Your Tax Bill Isn’t Based on the Purchase Price — But It Gets Close
Florida uses market value, not the recorded sale price, as the basis for taxation.
When you buy a home, the county reassesses the property the next tax year, often landing near your purchase price but not always matching it dollar-for-dollar.
This catches many northern buyers off guard because they assume the prior owner's taxes carry forward. They do not.
2. Save Our Homes Caps Don’t Transfer to New Owners
If the seller was a longtime Florida resident with homestead exemption, their taxable value may have been suppressed dramatically.
When a new owner takes over, the cap resets, and taxable value jumps to near current market value.
This is why that charming Naples cottage has a $3,800 tax bill today… but will very likely be around $8,000 to $12,000 once you own it.
3. Homestead Exemption Is a Powerful Tool
Primary Florida residents can shave up to $50,000 off their assessed value plus gain protection from rising assessments.
The real magic is the Save Our Homes 3 percent cap, which stops your taxable value from growing too quickly as the market appreciates.
Seasonal residents don’t qualify, so their taxes increase at normal market pace.
4. Portability Can Lower Taxes When You Move In-State
If you are relocating from another Florida home, you can transfer up to $500,000 of your Save Our Homes protection.
Northern buyers relocating from out of state often don’t know this feature exists, and those who do sometimes misunderstand the calculation. It’s a valuable planning tool for full-time residents.
5. Millage Rates Are Lower Than Many Expect
Collier and Lee maintain some of the lower millage rates among coastal counties.
However, the actual tax bill depends on:
• Assessed value
• County + city millage
• School district rates
• Special districts
• Whether you’re homesteaded
Most buyers are pleasantly surprised once they understand the math properly.
6. CDD and MSTU Fees Are Not “Taxes,” but They Act Like Them
Many communities — especially newer ones — include CDD (Community Development District) fees to fund infrastructure.
Others use MSTU (Municipal Service Taxing Units) to pay for lighting, landscaping, or community services.
These appear on your tax bill even though they aren’t technically property taxes. Understanding them early avoids sticker shock.
7. Condo and HOA Fees Don’t Reduce Your Property Taxes
Northern buyers sometimes assume that because a condo sets aside reserves and covers many maintenance items, taxes will be lower.
Unfortunately, taxable values are based on market conditions, not association budgeting.
8. Tax Estimators Are Helpful but Not Perfect
Both Collier and Lee Counties offer online calculators that give buyers a reasonable estimate based on future market value.
However, they don’t factor in:
• Future millage adjustments
• HOA/CDD variations
• Individual exemptions the prior owner used
• Adjustments based on improvements or additions
A good Realtor (that’s you) helps clients understand the nuances the tools can’t.
9. Florida Property Taxes Fund a Wide Range of Services
Including:
• Schools
• Public safety
• Environmental preservation
• Roads and infrastructure
• Parks, beaches, and recreation
• Water management districts
It reinforces why two homes of similar value can have different bills depending on the district.
10. You Can Appeal Your Assessment — And Many Residents Do
If property owners believe the assessed value is too high, they may appeal through the Value Adjustment Board.
It’s a clean, formal process and often misunderstood by newcomers who don’t realize Florida allows this opportunity.
Conclusion
Property taxes in Collier and Lee Counties can seem complicated, but once buyers understand how values reset, how exemptions work, and what fees to expect, everything falls into place.
The key is planning ahead. Whether you’re moving to Naples, Estero, Bonita Springs, Fort Myers, or Cape Coral, knowing the truth behind the numbers ensures no surprises come tax season.
If you’re preparing to purchase in Southwest Florida and want help estimating your future tax bill, I’m here to guide you with clarity and confidence.
Thinking about buying or selling in Naples?
Protect your investment with a trusted local expert by your side.
📞 Call Brian J Giacomello at 239-281-5269
📧 Email: [email protected]
William Raveis Real Estate | 720 5th Ave S. #201 Naples FL 34102
