Open any Orange County property record and you will see at least three values: market value, assessed value and taxable value. Owners often assume they are three estimates of the same thing. They are not. Each one is a step in a calculation, and only the last one is multiplied by the tax rate.
Market value: the starting point
Market value, which Florida law calls just value, is the Property Appraiser's estimate of what your property would have sold for on January 1. It is based on sales of similar properties in the prior year, adjusted for size, age, condition and features. Florida law also requires appraisers to consider the costs of selling a property, so just value often lands somewhat below typical sale prices.
Market value matters because it is the ceiling. Your assessed value can never be higher than your market value. It is also the number you challenge in a value appeal.
Assessed value: market value after caps
Assessed value is market value after any assessment limits are applied:
- Homesteads are protected by Save Our Homes. Their assessed value can rise by no more than 3% or the change in the Consumer Price Index each year, whichever is lower.
- Other residential and commercial property is capped at 10% a year for non-school taxes.
- Agricultural land is assessed on its agricultural use value.
For a home you have owned and homesteaded for years, the gap between market value and assessed value can be large. That gap is your Save Our Homes benefit, and you can often carry it to your next Florida home with portability.
Taxable value: what you actually pay tax on
Taxable value is assessed value minus exemptions, such as homestead, senior, veteran, disability, and widow or widower exemptions. This is the number multiplied by the millage rate.
For homesteads, there are usually two taxable values. The second part of the homestead exemption does not apply to school taxes, so the taxable value for school levies is higher than for other levies. Your TRIM notice shows both.
Putting it together
| Step | Example |
|---|---|
| Market value | $450,000 |
| Save Our Homes benefit | −$130,000 |
| Assessed value | $320,000 |
| Homestead exemption (non-school) | −$50,000 (approximately) |
| Taxable value (non-school) | $270,000 |
At 11 mills for non-school levies, the tax on this portion is about $2,970. The school portion is calculated separately on a taxable value of about $295,000.
Three common misreadings
"The county thinks my home is worth my assessed value." No. Assessed value is a capped figure. The county's opinion of worth is market value.
"My market value dropped, so my taxes should drop." Not necessarily. If your assessed value is below market value, it can keep rising by the annual cap even when market value falls. Our post on why a cooling market doesn't always cut your tax bill explains this.
"If I appeal and win, my taxes will fall." Only if the lower market value is below your current assessed value, or if your property is not capped. For a long-held homestead with a big Save Our Homes gap, a lower market value may not change your taxes at all.
What to do with this
Each August, when your TRIM notice arrives, compare the three values with last year's. Check that the assessed value on a homestead did not rise more than the cap, confirm your exemptions, and compare market value with recent sales. Our property search guide shows where each number appears on your record, and the Orange County property appraiser guide homepage links to every topic on this site.