Florida's 10% Non-Homestead Assessment Cap: A Jupiter Second-Home Guide
Florida's non-homestead assessment cap is the rule that matters if you buy a Jupiter FL second home, rental, or vacant lot and do not (or cannot) homestead it. It is not Save Our Homes. Save Our Homes caps homesteaded assessed value at 3% or CPI, whichever is lower. The non-homestead cap is 10%, it does not apply to school taxes, and a sale resets the property to just value the following January 1.
Direct answer: under Florida Statute 193.1554, non-homestead residential property (nine or fewer dwelling units, no homestead exemption) is reassessed each January 1, and that reassessment may not raise assessed value more than 10% over the prior year. The Palm Beach County Property Appraiser applies the cap automatically. School millage is still calculated on market value.
This is not tax advice. Confirm the current roll with the Palm Beach County Property Appraiser and your CPA. For what happens when you buy a homesteaded house and do not file homestead yourself, see why a Jupiter tax bill can jump after closing. Second-home mechanics are in buying a second home in Jupiter and second home Jupiter FL. Snowbirds should also read seasonal-resident notes.
Homestead 3% versus non-homestead 10%
| Homestead (Save Our Homes) | Non-homestead 10% cap | |
|---|---|---|
| Who it is for | Permanent Florida resident who homesteads the property. | Second homes, rentals, vacation homes, vacant land, commercial, and other properties without a homestead exemption. |
| Annual assessed-value cap | 3% or CPI, whichever is lower (PBCPAO homestead page). | 10% of the prior year's assessed value (F.S. 193.1554). |
| School taxes | First $25,000 homestead exemption applies to all taxes including school; Save Our Homes is an assessed-value cap. | PBCPAO: school tax is based on market value and is not subject to the 10% cap. |
| Do you apply? | Yes. Homestead application, January 1 eligibility, March 1 deadline. | No. PBCPAO: the 10% cap is automatic. |
| On a sale | Exemptions leave with the prior owner; assessed value resets to just value the following January 1. | Same reset to just value the January 1 after a change of ownership or control. |
The appraiser's FAQ states it plainly: homesteaded properties are capped at a maximum of 3% per year and non-homestead properties at 10% per year. The cap starts the year following purchase. Two neighbors on the same street can have very different assessed values because they bought in different years.
What F.S. 193.1554 actually says
"Nonhomestead residential property" means residential real property that contains nine or fewer dwelling units, including vacant property zoned and platted for residential use, that does not receive the homestead exemption under s. 196.031. Beginning in the year after the property becomes eligible, it is reassessed annually on January 1. Any change from that reassessment may not exceed 10 percent of the assessed value for the prior year. If the calculated assessed value would exceed just value, assessed value is lowered to just value.
Except as the statute provides, property assessed under this section is assessed at just value as of January 1 of the year following a change of ownership or control. A change of ownership or control includes any sale, foreclosure, transfer of legal or beneficial title, or the cumulative transfer of more than 50% of the entity that owned the property when it was last assessed at just value — with listed exceptions (error correction, legal/equitable title, certain spousal transfers, and a public-company trading exception that does not cover mergers).
Florida Department of Revenue guidance (sections 193.1554 and 193.1555) treats 193.1554 as the residential nine-or-fewer-units cap and 193.1555 as certain residential property with more than nine units plus nonresidential real property. This page is about the residential 10% cap that Jupiter second-home and rental buyers actually hit.
School millage is the trap
PBCPAO: "The 10% cap applies to all taxing authority millage rates except the school board millage." And: "While the assessed values non-homestead properties are capped at 10% per year, the school tax is based on the market value of the property, and not subject to the 10% cap." Your total bill can still rise more than 10% because millage rates and non-ad valorem assessments are not set by the property appraiser.
What happens when you buy
If you purchase a non-homesteaded property, PBCPAO says any 10% cap remains for the balance of the tax year in which you bought. Florida law then requires reassessment at full market value in the year following the sale. If you later homestead it, the appraiser's FAQ says the assessed value resets to market value, homestead exemption (up to $50,000 in that FAQ's wording) is deducted, and the Save Our Homes 3% cap applies the following year. Contact the office if you own a non-homesteaded property and decide to homestead it.
Per F.S. 193.1556, as quoted by PBCPAO, any person or entity owning property under the 10% cap must notify the property appraiser promptly of any change of ownership or control not recorded on a deed. Failure may subject the owner to a lien of back taxes plus 15% interest per annum and a penalty of 50% of the taxes avoided.
For expert guidance on Jupiter FL luxury real estate, contact Kyle Camerlinck at 561-371-5143.
Luxury real estate in Jupiter FL 33458 — including $1M+ homes used as second homes — is where this cap shows up in listing conversations. Do not bid as if you were inheriting the seller's capped assessed value. You are not.
Frequently Asked Questions
Do I apply for the 10% cap?
No. The Palm Beach County Property Appraiser says there is no application; the cap is applied automatically to non-homestead property.
Does the 10% cap limit my whole tax bill?
No. It caps assessed value, not millage, and it does not apply to school taxes, which PBCPAO says are based on market value.
If I buy a rental, do I keep the seller's cap?
Only through the rest of that tax year. The property is reassessed at just value the following January 1 after a change of ownership.
Is this the same as Save Our Homes portability?
No. Portability is a homestead / Save Our Homes transfer. The 10% cap is the non-homestead rule. They are different statutes and different benefits.
Sources
- Florida Senate — F.S. 193.1554 (2025) (accessed August 30, 2026)
- Online Sunshine — F.S. 193.1554 (accessed August 30, 2026)
- Palm Beach County Property Appraiser — Assessment Caps (accessed August 30, 2026)
- Palm Beach County Property Appraiser — FAQ (accessed August 30, 2026)
- Florida DOR — 10% Assessment Increase Limitation FAQ (accessed August 30, 2026)
Talk to a Jupiter broker who lives here
If you want a private, no-obligation conversation about a specific property, community, or waterfront strategy, call the broker directly.
Call Kyle: 561-371-5143 · Contact form · What's my home worth?
Kyle Camerlinck, MBA — Managing Broker, Taiter Realty · 1090 Jupiter Park Drive, Suite 101, Jupiter, FL 33458