How Much Are Property Taxes on a Vacation Home on Florida's Forgotten Coast?
Vacation homes in Gulf County, Florida are assessed as non-homestead property, which means you pay taxes on the full assessed value every year with no homestead exemption and no Save Our Homes cap. Annual property taxes on the Forgotten Coast typically run $9 to $12 per $1,000 of assessed value depending on your taxing district, putting a $1 million vacation home at roughly $9,000 to $12,000 per year. Port St. Joe city properties carry slightly higher rates than unincorporated Gulf County areas like Cape San Blas, Indian Pass, and St. Joe Beach.
Property taxes are one of the first things I walk buyers through when we're looking at vacation homes on the Forgotten Coast. It's not the most exciting conversation, but it's one of the most important. Miss this number in your budget and you'll feel it every year you own the place.
Florida has no state income tax. That's a real draw for buyers, and it's one reason so many people from high-tax states are looking at Mexico Beach, Cape San Blas, and St. George Island right now. But Florida does tax property, and vacation homes pay the full bill.
Here's what that looks like in practice.
What Vacation Home Buyers in Gulf County Actually Pay
Florida's property tax system works differently depending on whether a property is your primary residence or a vacation home. Primary residences qualify for the homestead exemption, which reduces the taxable assessed value and also limits how much your assessment can increase each year. Vacation homes get neither benefit.
No homestead exemption. Florida's homestead exemption removes $50,000 from the taxable assessed value of a primary residence. On a $1 million home, that's $50,000 the primary resident doesn't pay tax on. As a vacation home buyer, you start at the full assessed value and stay there.
No Save Our Homes cap. Primary residents in Florida are protected by the Save Our Homes (SOH) assessment cap, which limits annual assessment increases to 3% or the rate of inflation, whichever is lower. Vacation and investment properties operate under the non-homestead cap, currently set at 10% per year. In a rising market, that's a meaningful difference. If values climb, your taxable assessment can follow at a pace your neighbors with homestead protection don't experience.
The millage rate. Gulf County's total property tax rate combines the county millage, school district levies, and any municipal or special district assessments that apply to your parcel. These rates vary by location. Properties inside Port St. Joe city limits pay a city millage on top of the base county and school rates. Most of Cape San Blas, Indian Pass, and St. Joe Beach sit in unincorporated Gulf County, so they don't carry that additional layer.
Based on current Gulf County millage data, vacation home buyers can estimate:
- Unincorporated Gulf County (Cape San Blas, Indian Pass, St. Joe Beach): approximately 0.90% to 1.00% of assessed value per year
- Port St. Joe city: approximately 1.05% to 1.15% of assessed value per year
Here's what that translates to at different price points on a non-homestead vacation home:
| Purchase Price | Est. Annual Taxes (Cape San Blas / Unincorporated) | Est. Annual Taxes (Port St. Joe City) |
|---|---|---|
| $600,000 | $5,400 – $6,000 | $6,300 – $6,900 |
| $800,000 | $7,200 – $8,000 | $8,400 – $9,200 |
| $1,000,000 | $9,000 – $10,000 | $10,500 – $11,500 |
| $1,250,000 | $11,250 – $12,500 | $13,125 – $14,375 |
| $1,500,000 | $13,500 – $15,000 | $15,750 – $17,250 |
| $2,000,000 | $18,000 – $20,000 | $21,000 – $23,000 |
These figures are estimates based on current Gulf County millage rates. Your actual tax bill depends on your parcel's specific taxing district, any special assessments, and the assessed value the property appraiser assigns at your closing. Use the Gulf County Property Appraiser's tax estimator to run the actual numbers on any specific parcel before you buy.
One thing that surprises a lot of buyers: if the current seller has the homestead exemption on the property, their tax bill will look lower than yours will. Don't use their tax bill as your estimate. Run the number for a non-homestead owner, which is what you'll be.
Three Things to Do Before You Make an Offer
Request the current tax bill. Florida law requires sellers to disclose their current property tax bill. Ask for it. Look at the current assessed value, whether any exemptions are applied, and what the seller is actually paying. Then use the county estimator to calculate what you'd pay without the homestead exemption.
Run your own estimate on the parcel. The Gulf County Property Appraiser's website at gulfpa.com has a searchable property database and a tax estimator that runs on actual assessed values and current millage rates. Type in the property address, select "no exemptions," and you'll see what a vacation home owner pays. It takes about two minutes.
Factor taxes into your carrying cost analysis. Property taxes are a fixed annual cost that doesn't change with the season. If you're buying as a vacation rental investment, add this line item to your insurance, HOA fees, utilities, and management costs before you run income projections. I've done detailed work on the full numbers for Cape San Blas investment buyers in a separate post on vacation rental returns on Cape San Blas — the carrying costs matter as much as the gross income.
And for sellers trying to calculate net proceeds, I covered the full cost breakdown, including property tax proration at closing, in my post on what it costs to sell a home on the Forgotten Coast.
A Note on the November 2026 Ballot
On June 2, 2026, the Florida Legislature passed a proposed constitutional amendment that would go before voters this November. If approved, it would lower the annual assessment increase cap on non-homestead properties from 10% to 5%, effective January 1, 2027.
That's not a reason to rush or delay a purchase on its own. But if you close on a vacation home in 2026 and voters approve the amendment in November, you'd enter 2027 with a tighter cap protecting your assessed value from rapid increases. It's worth knowing as you think about long-term carrying costs.
The vote is in November. No guarantees, but the measure has passed both chambers of the Legislature.
Frequently Asked Questions
No. Florida's homestead exemption applies only to a property owner's primary residence. Vacation homes, second homes, and investment properties don't qualify, which means you pay taxes on the full assessed value with no reduction. If you eventually move to the property and declare it your primary residence, you can apply for homestead exemption with the Gulf County Property Appraiser's office by March 1 of the applicable tax year.
Your annual property tax bill is your property's assessed value multiplied by the total millage rate for your taxing district. In Gulf County, the total rate combines county, school, and (if applicable) municipal millage. For unincorporated areas like Cape San Blas and Indian Pass, the combined rate runs approximately 9 to 10 mills. For Port St. Joe city properties, the city millage brings the total closer to 10.5 to 11.5 mills. One mill equals $1 per $1,000 of assessed value.
They can. Non-homestead properties in Florida are subject to a 10% annual cap on assessment increases (not a 10% cap on your tax bill itself). If the Gulf County Property Appraiser raises your assessed value, your taxes will follow. Primary homestead properties are protected by the 3% Save Our Homes cap, but that protection doesn't extend to vacation homes. A proposed constitutional amendment on the November 2026 ballot would lower the non-homestead cap from 10% to 5% starting January 1, 2027, if Florida voters approve it.
Market value is what the property is worth in an open sale. Assessed value is the figure the county property appraiser assigns for tax purposes, which is sometimes lower. For vacation homes (non-homestead properties), the assessed value is typically close to market value because there's no homestead adjustment pulling it down. Over time, assessment increases are capped at 10% per year even if market value rises faster, so a property held for several years in a rising market may have an assessed value somewhat lower than its current market value.
Use the Gulf County Property Appraiser's online tax estimator at gulfpa.com. Search by property address, pull up the parcel record, and run the estimator with no exemptions selected to see what a non-homestead owner pays. You can also ask the seller for their most recent tax bill, but note that if they have the homestead exemption, their bill will be lower than yours. The county estimator gives you the clean, exemption-free number you actually need.
Property taxes on the Forgotten Coast are predictable once you understand how the non-homestead system works. The numbers aren't small, but they're knowable, and knowing them before you make an offer is exactly what separates a confident buyer from one who gets surprised at closing.
If you're working through the total carrying costs on a specific property, give me a call or shoot me a text. I'm happy to walk through the taxes, insurance, HOA, and all of it with you before you commit to anything. That's how I work with buyers here.
Billy Joe Smiley
Port Realty Group
(850) 340-1213
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