Moving to Florida from Illinois

How a Florida property tax bill is built

Florida taxes are set by millage, where one mill is $1 of tax per $1,000 of taxable value. Each county, city, school board and special district sets its own millage, so the total rate depends on the exact address. The mechanics for a homesteaded house:

• Start with the assessed value, which resets to market value the year after you buy.
• Subtract $25,000 for every levy, including schools.
• Subtract up to another $26,411 for non-school levies (2026 figure, indexed to inflation).
• Apply the millage of each taxing authority, then add any non-ad valorem assessments such as solid waste, fire or a CDD.

On a house assessed at the state's typical single-family value of $396,809, the school portion is taxed on $371,809 and the other levies on $345,398. Every mill of non-school tax on that house costs about $345 a year, and every school mill about $372.

Why year two matters more than year one

Florida's Save Our Homes rule caps increases in a homestead's assessed value at 3% a year or CPI, whichever is lower. If that $396,809 house rose 10% in market value, its assessment could rise no more than about $11,900, to roughly $408,700. Over a decade the gap between market value and assessed value can grow large, and it stays with you as long as you own and live in the home.

• Apply by March 1 with the county property appraiser, for the year after you own and live in the home on January 1.
• The first bill can mislead. If you close mid-year, the bill you receive that November reflects the seller's exemptions and assessment. The next one reflects your purchase price.
• Second homes get no homestead exemption and a 10% annual cap on non-school levies only.
• Portability lets Florida owners carry part of their cap benefit to a new Florida homestead. It does not apply to a home you owned in Illinois.

Florida voters decide Amendment 3 on November 3, 2026. It changes homestead and non-homestead property tax rules and needs 60% approval; the outcome was unknown when I wrote this, so ask what passed before you rely on any tax estimate.

Income tax and estate tax, honestly

Florida has no state income tax and no state estate tax. Illinois has a flat income tax and its own estate tax. What that means for you depends on where your income comes from:

• Working households and anyone with large investment gains feel the income tax change directly.
• Retirees should check how Illinois currently treats their pension, Social Security and IRA withdrawals, because Illinois exempts much retirement income. For some retirees, the income tax savings are smaller than the headline suggests.
• Estate planning often changes after a move. Have your will and trust reviewed by a Florida attorney.

This isn't legal or tax advice. Talk with a CPA about the year you change residency.

Insurance replaces the heating bill as the line to watch

A Chicago-area buyer budgets for winter heating and snow removal. In Florida, the cost that moves around is the homeowners policy.

• Hurricane deductible: a percentage of dwelling coverage, usually 2%, 5% or 10%, applied once per calendar year.
• Roof age drives eligibility with many carriers. A roof near the end of its life can block a quote or force a replacement.
• Wind mitigation inspection: documents straps, roof shape, shutters and impact glass for premium credits.
• 4-point inspection for older homes, covering roof, electrical, plumbing and HVAC.
• Flood insurance is a separate policy, required by lenders in FEMA A and V zones.
• Citizens Property Insurance is the state-backed insurer of last resort if private carriers decline.

Get quotes during the inspection period. In my experience this is the number that most often changes a buyer's choice between two homes.

Chicago condo owners: Florida condos run under newer rules

Many Illinois movers come from a condo and want another one. Florida's condo law changed after 2021:

• Milestone inspections for buildings of three or more habitable stories by the end of the year they turn 30 (or 25 if the local building official requires), then every 10 years.
• Structural Integrity Reserve Study every 10 years, and for budgets adopted on or after December 31, 2024, owners cannot waive or cut those reserves.
• Seven-day review: a resale buyer can cancel within 7 days (excluding weekends and legal holidays) after receiving the association documents.

The statewide condo index is $262,592, down 3.9% over the past year. In Tampa the condo figure is $194,297, in Orlando $170,712 and in Clearwater $194,891. Older towers with large reserve gaps can carry special assessments, so read the SIRS before the price. Also ask for the last two years of board minutes. They show planned roof, elevator and concrete work long before an assessment is voted, and they tell you how the board handles money. A low monthly fee in a 40-year-old tower with no recent study is a warning sign, while a higher fee in a building that has finished its repairs can be the cheaper purchase over five years. If you finance, ask the lender early whether the building is warrantable, because a building with open structural work or thin reserves can limit loan options.

Where Illinois buyers can find value

• Big-city jobs at a lower price: Jacksonville at $284,832 and Tallahassee at $291,188.
• Central Florida: Lakeland at $309,422 and Polk County at $295,509, between Tampa and Orlando.
• Gulf coast towns with older buyers: Largo, with 28.0% of residents 65 and older in Census data, and North Port at 27.7%.
• South Florida costs more: Broward County $422,344, Palm Beach County $475,754, Miami-Dade $523,240.

Statewide values are down 0.9% over the past year and up 18.6% over five years. That flat stretch is a better time to compare neighborhoods carefully than to rush.

Closing in Florida

Florida closings are usually run by a title company or a real estate attorney. Documentary stamp tax on the deed is $0.70 per $100 and customarily paid by the seller in most counties. As a buyer with a mortgage, you pay $0.35 per $100 on the note and 0.2% intangible tax on the mortgage. The owner's title policy is a state-set rate, and who pays it follows county custom. A shortlist built around your tax and insurance budget, rather than list price alone, is the most useful thing to start with.