Florida Non-Homestead 10% Cap: A 2026 Guide

Last updated: July 2026

The Florida non-homestead 10% cap limits how much the assessed value of a non-homestead property can rise in a single year to 10 percent, no matter how far market value climbs. It applies to second homes, rentals, commercial buildings, and vacant land. It does not apply to property that carries a homestead exemption, which is protected instead by the tighter Save Our Homes cap of 3 percent or the change in the consumer price index, whichever is lower [1][2]. One point that surprises many out-of-state buyers: the 10 percent cap covers county, municipal, and independent-district taxes, but it does not cover the school-district portion of the tax bill. School taxes are assessed on full market value every year.

The cap comes from the Florida Constitution and is applied automatically by the county property appraiser. You do not file for it. But it is fragile. A change of ownership, a change of control, or a change of use can reset the base year and expose the property to a fresh full-market assessment. For anyone underwriting a Miami-Dade acquisition, understanding when that reset happens is the difference between a stable carrying cost and a step-up that reshapes the pro forma.

Where the cap comes from

Florida voters approved Amendment 1 in January 2008. It added the assessment limitations now found in Article VII, Section 4 of the Florida Constitution, and the non-homestead protection took effect with the 2009 tax roll [3]. The provision was originally set to sunset, and voters made it permanent when more than 60 percent approved its renewal on the November 2018 ballot. The Florida Legislature implemented the constitutional language through Sections 193.1554 and 193.1555 of the Florida Statutes, which cover non-homestead residential property and commercial or non-residential property respectively [1].

The mechanics are straightforward. In the base year, the property appraiser sets the assessed value at just value, which is Florida's term for market value. In each following year, the assessed value can grow by at most 10 percent, even if just value jumps by 30 or 40 percent. The gap between the capped assessed value and full market value is the benefit. Over several years of a rising market, that gap can become substantial.

How it differs from Save Our Homes

The homestead cap and the non-homestead cap are often confused because both limit assessment growth, but they are not the same instrument.

Save Our Homes protects a primary residence that has a homestead exemption. It caps annual assessed-value growth at 3 percent or the consumer-price-index change, whichever is lower. For the 2025 roll the Florida Department of Revenue set that figure at 2.9 percent [2]. Save Our Homes also carries a portability feature that lets a Florida homeowner move accumulated savings to a new homestead.

The non-homestead 10% cap is looser in three ways. The annual limit is higher, at 10 percent rather than 3 percent. It carries no portability. And it resets more readily, because non-homestead property changes hands and changes use far more often than a family home. Both caps share one important exclusion: neither shields the school-district portion of the tax bill, which is always calculated on full just value.

What triggers a reset

The base year resets, and the assessed value returns to full just value the following January 1, when any of the following occur [1]:

Change of ownership

Most sales and transfers reset the cap. When you buy a capped property, you generally do not inherit the seller's low assessed value. The appraiser reassesses at market for the year after the transfer, and a new 10 percent cap begins from that higher base. This is the reset most buyers underestimate. A building that has been under the same owner through a long run-up may show a modest assessed value on public records, and a new owner should not assume that figure carries forward.

Change of control

Ownership does not have to move by deed to trigger a reset. When property is held in an entity, a cumulative transfer of more than 50 percent of the ownership interest counts as a change of control and resets the cap. Publicly traded companies are treated differently, since shares trade constantly on an exchange. Because no deed is recorded in an entity-level sale, the owner is required to notify the property appraiser using the Department of Revenue's Form DR-430 [1].

Change of use

Converting a property to a materially different use can reset the base year. So can certain qualifying improvements, which are added to the assessment at just value in the year they are completed rather than being folded under the 10 percent limit. Routine maintenance does not trigger this; a substantial addition or a change in the character of the property can.

A handful of transfers do not reset the cap, including corrections of a title error and transfers between legal and equitable title. On smaller residential non-homestead property, transfers between spouses, including after a divorce or to a surviving spouse, are also protected from reset [1].

The notification rule and its penalty

Owners carrying the non-homestead cap have an affirmative duty to tell the property appraiser when ownership or control changes and no deed is recorded. Skipping that step is expensive. An owner who fails to notify the appraiser can face a lien for back taxes owed, interest at 15 percent per year, and a penalty of 50 percent of the taxes that were avoided [1]. For an entity-held Miami-Dade asset, that duty belongs on the closing checklist, not left to chance.

What it means for Miami-Dade investors and second-home buyers

For buyers, the practical lesson is to underwrite the first-year tax bill on the purchase price, not the seller's capped assessed value. In a market where prices have moved well above older assessments, the reset can raise the tax line materially in year one. When you evaluate a rental building in Brickell or a second home elsewhere in the county, ask the property appraiser's office or your agent what the current just value is, and model the tax bill from there rather than from the number on last year's roll.

For owners already holding capped property, the cap rewards patience. The longer you hold through a rising market without a reset event, the wider the gap between assessed and market value grows, and the more the cap is worth. That value does not transfer to a buyer, which is one reason a long-held, low-basis asset can be worth holding rather than selling in a strong market.

Second-home buyers should also weigh the homestead question. A non-homestead second residence stays under the 10 percent cap, but if the property later becomes your Florida primary residence and you file for homestead, you move to the tighter Save Our Homes track, and the non-homestead cap is removed in the process. That is usually a benefit, but the transition year deserves a careful look at the numbers.

If you are weighing a purchase or want a grounded read on carrying costs before you write an offer, a buyer consultation is the place to work through the tax math. If you already own and want to understand how the cap has affected your basis and your options, request a current valuation of your Miami home.

Frequently asked questions

Does the Florida non-homestead 10% cap apply to school taxes?

No. The cap limits the county, municipal, and independent special-district portions of the assessment, but the school-district portion is assessed on full just value every year [1][3]. This mirrors the homestead Save Our Homes cap, which also excludes school taxes.

Do I keep the seller's low assessed value when I buy a capped property?

Generally no. A change of ownership resets the base year, and the property is reassessed at just value for the year after the sale. Underwrite the tax bill on your purchase price rather than the prior assessed value [1].

How is the non-homestead cap different from Save Our Homes?

Save Our Homes caps a homesteaded primary residence at 3 percent or the CPI change, whichever is lower, and it is portable. The non-homestead cap allows up to 10 percent annual growth, is not portable, and resets on a change of ownership, control, or use [1][2].

Do I have to apply for the non-homestead cap?

No. It applies automatically once the base year is set. There is no application. Owners do, however, have a duty to notify the property appraiser of an ownership or control change when no deed is recorded, using Form DR-430 [1].

What happens if I do not report a change of control?

The property appraiser can place a lien for the back taxes owed, add interest of 15 percent per year, and impose a penalty of 50 percent of the taxes that were avoided [1].

Gabriel

Sources

Gabriel A. Moyers, PA. eXp Realty. Florida License #3407280. Equal Housing Opportunity. This article is general information as of July 2026 and is not legal, tax, or financial advice. Verify current figures against authoritative sources before acting.