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In 2023, more than 100 Palm Beach, FL, property owners faced annual tax bills topping $500,000. For two dozen of them, the tab was even steeper, crossing the million-dollar mark, according to the Palm Beach Daily News.
And now, those same owners along with thousands of others across the island are bracing for a fresh round of tax estimates. The numbers won’t hit every homeowner equally, but in a place where oceanfront estates routinely trade for seven or eight figures, the bills can rival the price of a starter home elsewhere.
Even with the real estate frenzy cooling, taxable values in one of America’s wealthiest enclaves continue to edge higher. And as the notices land in mailboxes, the question lingers: How much more will it cost to hold on to this piece of paradise?
Growth slows, but taxable values are still expected to rise
Early estimates show Palm Beach’s residential and commercial property market values grew 2.56% over the last year, reaching roughly $56 billion. But taxable values—which determine how much homeowners actually owe—are rising faster, up 7.5% year over year to just under $35 billion.
The gap exists because market and taxable values don’t move in lockstep. Florida’s homestead exemption and other caps limit how much a property’s taxable value can increase annually, keeping many primary owners locked into low assessments. When the market slows, those capped values often continue climbing at max rates to play catch up.
Even so, the pace of growth has eased for taxable value, too. This year’s 7.5% increase is considerably smaller than last year’s 10.6% gain, the 9.2% jump in 2023, or the staggering 18% leap in 2022.
What TRIM notices mean
Every August, Florida homeowners receive a TRIM notice—short for Truth in Millage—that acts as an early warning system for looming property tax bills. The practice is born out of the state’s 1980 TRIM Act, a landmark piece of legislation that aimed to increase transparency around taxation.
But crucially, a TRIM notice isn’t an actual bill. It’s a preview that breaks down how your home’s assessed value and the proposed tax rates from local authorities could translate into what you’ll owe in the fall.
To give homeowners true transparency into their taxes, it lists every taxing body in your community—from the county and city to the school district—along with the millage rates they’re proposing. It also shows how your property’s taxable value compares with the previous year’s, giving you concrete knowledge about where increases are coming from and why.
Local governments also use these estimates to guide their budget hearings in September, but nothing is locked in until Nov. 1, when actual tax bills are mailed. That gap gives homeowners a chance to weigh in.
For many, the opportunity is crucial. A recent report from Realtor.com® suggests as much as 40% of Americans are overpaying on their property taxes.
Palm Beach residents who believe their assessment is off have to file a petition with the Value Adjustment Board no more than 25 days after TRIM notices are mailed. Tools like Realtor.com’s property tax protest feature can help by gathering information on nearby comparable properties that can be used as evidence to strengthen an appeal.
Who feels it most
For all the talk in Tallahassee, FL, about abolishing or slashing property taxes, the reality in Palm Beach is far more immediate: The bite depends heavily on who owns the home.
Year-round residents have the most relief options. Eligible primary residence owners can reduce the taxable value of their homes by up to $50,000 through a homestead exemption. This exemption also allows them to qualify for the Save Our Homes Act, which caps annual assessment increases at 3%.
To understand the powerful savings these exemptions and cap can unlock, let’s say your home was worth $500,000 in 2020. With the homestead exemption, your taxable value dropped to $450,000. The next year, your property’s market value jumped 18% to $590,000. But thanks to the Save Our Homes cap, your taxable value only rose to $463,000. Instead of being taxed on nearly $600,000, you were shielded, keeping your bill tethered to something far closer to your 2020 assessment.
But seasonal owners and investors don’t enjoy the same protection. Their assessments can climb by as much as 10% each year.
Zooming out, the stakes are even broader. Florida lawmakers are still divided on how to respond to mounting public pressure over property tax burdens. Gov. Ron DeSantis has floated ambitious relief proposals—like doubling or tripling the homestead exemption or offering $1,000 rebates. The state legislature, meanwhile, has emphasized sales tax cuts instead, leaving the future of long-term property tax reform unresolved.