How Much House Can I Afford on a $100K Salary? The Math Lenders Use

Palm Beach County property taxes are figured by multiplying your home's taxable value by the millage rates of every taxing authority where you live, and on a brand-new home, the second year's bill can be much bigger than the first. Florida law values property as of January 1, and a home that was not "substantially completed" on that date gets no value placed on the house for that year. The Tax Collector mails bills by November 1, with a 4% discount if you pay in November.

How are property taxes calculated in Palm Beach County?

The Florida Department of Revenue sums it up in one line: "Taxable value ÷ 1,000 × millage rate = Property Tax Owed." One mill is "one dollar per $1,000 of assessed value."

Three offices play a part:

• The Palm Beach County Property Appraiser sets your home's value and applies any exemptions, like homestead.

• Taxing authorities (the county, the School Board, your city and special districts) each set a millage rate.

• The Palm Beach County Tax Collector sends the bill and collects the money.

Your bill can also include non-ad valorem assessments, which are flat charges for services. The Tax Collector explains that these "are determined by the levying authority using a unit measure to calculate the cost of services," for example "Solid Waste Authority fees are based on the type of property producing the waste."

What are the 2026 millage rates in Palm Beach County?

The Property Appraiser's 2026 sheet lists each taxing authority's 2025 final rate and its 2026 proposed rate (revised July 29, 2026). Final 2026 rates are set at public hearings, and your November bill will show the final numbers. Here are a few lines from that sheet, with what each costs per $100,000 of taxable value at the 2026 proposed rate:

This table is not a full bill. Each address pays its own mix of levies, and some lines on the sheet, such as debt service, water management and fire-rescue, are not shown here. To estimate a specific home, use the Property Appraiser's Property Tax Calculator.

Why is the first tax bill on a new home so low, and the second one so high?

This is the part that surprises new-construction buyers. Florida Statute 192.042 says real property is valued "on January 1 of each year" and "Improvements or portions not substantially completed on January 1 shall have no value placed thereon."

"Substantially completed" means the home "can be used for the purpose for which it was constructed."

Here is how that plays out. Say your home is finished and you close in spring 2026. On January 1, 2026, the house was not done. So the 2026 bill, mailed in November 2026, is based on the land and whatever value was placed on it for that year. On January 1, 2027, the finished home is there. The 2027 bill includes the house, and it can be much bigger.

The Property Appraiser's FAQ adds: "The basis for the new improved value will NOT be based on permit costs." The appraiser sets its own value.

How does the homestead exemption lower your tax bill?

If the home is your permanent residence, homestead can cut your taxable value. The Property Appraiser explains that "A $25,000 exemption is applied to the first $50,000 of your property's assessed value." An additional exemption applies above that, but it "is not applied to school district taxes." The Property Appraiser lists the maximum additional amount as $25,722 for 2025, because it is adjusted for inflation.

To qualify, the Property Appraiser says that as of January 1 you must own the home and make it your permanent residence. The application must be "submitted by March 1 of the year in which the benefit will be applied." Palm Beach County takes applications online through the Property Appraiser's E-File system.

So if you close in 2026, you would file by March 1, 2027 for the 2027 tax year. That is the same year your finished house first shows up on the roll. For more on filing, read our guide to the Florida homestead exemption on a new-construction home.

Here is a simple EXAMPLE. It uses an assessed value of $400,000 and the 2025 homestead figures above. It shows only the county and School Board lines from the table.

Your real bill will include other levies and assessments.

How much can my assessed value go up each year?

Once you have homestead, the Save Our Homes cap limits how fast your assessed value can rise. Florida Statute 193.155 caps the yearly increase at the lower of 3% or the change in the Consumer Price Index. The Florida Department of Revenue lists that cap as 2.7% for 2026.

Homes without homestead have a different limit. Under Florida Statute 193.1554, the increase "may not exceed 10 percent of the assessed value of the property for the prior year." The Property Appraiser notes, "The 10% cap is only for 'non-homestead' properties."

Moving from another Florida homestead? Portability may help. The Property Appraiser says you can transfer "up to $500,000" of your Save Our Homes benefit, but "you must establish your new residence on or before January 1 of the third year after abandoning your previous homestead."

What is on the November 2026 ballot about property taxes?

Florida voters will see Amendment 3 on the 2026 general election ballot. Its official title is "INCREASED HOMESTEAD EXEMPTION; LOWER CAP ON INCREASES IN NON-HOMESTEAD PROPERTY ASSESSMENTS." The official ballot summary begins: "This amendment increases the homestead exemption, for all non-school taxes, to $150,000 in 2027 and $250,000 in 2028, and adjusts for inflation thereafter."

We do not take a side. For a neutral walk-through, read Florida property tax Amendment 3 explained. This post will be refreshed after the vote.

When are Palm Beach County property taxes due?

The Tax Collector says, "by November 1, the Tax Collector's Office mails more than 600,000 property tax bills to property owners." Paying early saves money: "4% in Nov., 3% in Dec., 2% in Jan., 1% in Feb." The "Gross amount due March 31, no discount applies," and "Property tax is delinquent on April 1 and is subject to penalties and interest."

If your lender collects taxes through escrow, it pays the bill for you. Learn how that works in what is escrow when you buy a house.

What this means for new-construction buyers in Palm Beach County, FL

• Do not budget from the first bill. A bill based on land only can make your monthly payment look lower than it will be. Ask your lender how it is estimating taxes for escrow.

• File homestead on time. Own and live in the home on January 1, then file by March 1.

• Run the calculator. Use the Property Appraiser's calculator with your city's levies to plan for the full bill.

• Know your area's levies. City millage rates differ a lot across the county, from Royal Palm Beach to West Palm Beach in the table above.

Exploring new homes in the county? See Arden, Vintage Oaks and Whitmore Estates, or call 561-704-0091 for today's numbers.

Common Questions

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Call 561-704-0091 to talk with a National House Search specialist, or Schedule a visit.

Related reading: Florida homestead exemption on a new-construction home · Florida property tax Amendment 3 explained · Arden · Vintage Oaks

Sources: PBC Tax Collector · PBC Property Appraiser 2026 millage sheet · PBC Property Appraiser homestead · Florida Statute 192.042 · Florida DOR Save Our Homes · Florida Division of Elections

This is general information, not financial, tax or legal advice. Figures checked October 9, 2026.