canadafloridaThe reference manual

Chapter 02 · Topic 02.1 · Property tax

Florida 10% non-homestead cap: F.S. §193.1554 / §193.1555

10% cap limits annual non-homestead AV growth. Does NOT apply to school taxes. Resets on sale. Automatic for Canadian snowbirds on second homes.

Published 2026-04-28Last reviewed 2026-04-29Reading time ≈ 10 minAuthor CanadaFlorida Editorial Team

Direct answer · 60-second summary

The 60-second version

The 10% non-homestead cap (F.S. §193.1554 for non-homestead residential, F.S. §193.1555 for commercial/non-residential) limits the annual increase in assessed value (AV) to 10% per year for properties without homestead — second homes, rentals, vacant land, commercial. Adopted by 2008 Amendment 1, extended in 2018. Key exclusion: this cap does NOT apply to school taxes (school district levies). For school taxes, AV stays = JMV every year. The cap resets on every change of ownership (sale). The typical Canadian snowbird automatically benefits from this cap on a Florida second home without filing, unlike homestead.

REFERENCE · ACRONYMS USED IN THIS GUIDE

Acronyms used in this guide

Principle: 10% per year, school taxes excluded

  • Adopted: 2008 Amendment 1, ratified January 29, 2008. Permanent since 2018 referendum (Amendment 2).
  • Annual cap: 10% on prior-year AV, or JMV, whichever lower.
  • Applies to all non-school taxes: county, city, water management, fire, library, CDD, etc.
  • Absolute exclusion: school taxes (school district). For those, school AV = JMV each year.
  • Effective: January 1 of the year following the first year the property becomes eligible (first January 1 after non-homestead acquisition).

Worked example

Canadian snowbird example

Buys Naples condo 2020 at $400,000 (no homestead eligibility). Initial AV = JMV = $400,000.

For non-school taxes (10% cap):

  • 2021: JMV $480K, AV capped at $440K (400 × 1.10).
  • 2022: JMV $580K, AV capped at $484K (440 × 1.10).
  • 2023: JMV $600K, AV capped at $532.4K.
  • 2024: JMV $620K, AV capped at $585.6K.
  • 2025: JMV $630K, AV capped at $630K (cap caught up to JMV).

For school taxes: school AV = JMV every year ($400K, $480K, $580K, $600K, $620K, $630K). No cap.

Cumulative benefit is meaningful in hot markets but well below SOH 3% on homestead.

Reset on sale

The 10% cap resets to zero at any change of ownership. Broad definition (F.S. §193.155(3) applied to non-homestead):

  • Standard sale.
  • Gift.
  • Death of owner (except transfer to surviving spouse).
  • Transfer into/out of an LLC or trust in some cases.

The year after the change, AV resets to JMV for the new owner. The 10% cap then restarts year by year.

Exception: surviving spouse who inherits keeps the accumulated cap.

Comparison: SOH 3% vs 10% cap

CriterionSOH 3% (homestead)10% cap (non-homestead)
Status requiredUSC or LPR + primary residenceNone
Annual AV cap3% or CPI, lower10%
Applies to school taxes?YesNo
ApplicationForm DR-501 + DR-501TAutomatic (no form)
ResetSale (except portability)Sale (except surviving spouse)
Differential transferable?Yes (up to $500K, FL only)No
Fits Canadian snowbird?No (immigration status incompatible)Yes (by default)

§193.1555: commercial and non-residential

F.S. §193.1555 applies the same 10% cap to non-residential properties:

  • Commercial (office buildings, retail).
  • Industrial (warehouses, plants).
  • Vacant non-agricultural land over 0.5 acre.

Same rules: 10% annual, school exclusion, reset on sale.

For Canadians who hold commercial or multifamily via LLC, the cap applies to the property, not the LLC. But sale of LLC shares can in some cases be interpreted as ownership change (consult a FL attorney).

VAB challenge possible

As for homestead, you can challenge JMV on a non-homestead property via VAB. See dedicated article.

The 10%-capped AV is automatically calculated by the PA — no separate petition needed to activate the cap. But if JMV itself is too high, you can challenge.

Formulaires officiels et pages de référence

Responsabilité du lecteur

Toujours utiliser la dernière version disponible sur le site officiel cité ci-dessous. Les seuils, taux et délais évoluent. CanadaFlorida ne se substitue pas à un professionnel licencié.

Editorial team

CanadaFlorida Editorial Team

Research drawn from primary public sources cited at the bottom of every guide: U.S. and Florida statutes, U.S. and Canadian federal agencies, official Florida county and state authorities, and Canadian provincial bodies where applicable.

Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.

Sources and references

Public sources verified as of the last review date (Florida Statutes, Florida Department of Revenue, Citizens, FEMA, DBPR).

  1. F.S. §193.1554 — Assessment of certain residential and non-residential real property. leg.state.fl.us/§193.1554
  2. F.S. §193.1555 — Assessment of certain residential and nonresidential real property. §193.1555
  3. Florida Constitution Art. VII §4 — Assessment limitations. flsenate.gov/Constitution
  4. Florida DOR — 10% Cap FAQ. DOR FAQ PDF

Disclaimer

This guide is for educational purpose only. Figures, rates, thresholds, timelines and rules are drawn from public sources at the date shown and may change.

For any concrete decision, consult a Florida-licensed attorney, a cross-border tax attorney, or a Florida-licensed insurance broker.