Why First‑Year Taxes Jump After Buying In Stuart

Did your first full-year property tax bill jump after buying in Stuart or Palm City? You are not alone. Many Martin County buyers are surprised when the bill is higher than what the seller paid. The good news is there are clear reasons behind it and steps you can take to plan ahead. In this guide, you will learn what changed after closing, how homestead rules work, and what to check so your escrow and budget stay on track. Let’s dive in.

Why first-year taxes jump

Change of ownership resets assessed value

When a property changes hands in Florida, the county reassesses it. The prior owner’s reduced assessed value from the Save Our Homes benefit goes away, and your assessed value resets closer to market value for that tax year. This is the most common reason your first full-year bill is higher. See the Martin County explanation in the Homestead Exemptions FAQs.

Save Our Homes belongs to the seller

The Save Our Homes cap limits assessed value increases for homesteaded owners to the lesser of 3 percent or the CPI each year. That savings accumulates over time, but it stays with the prior owner and does not automatically transfer to you. Learn how the cap works on the county’s Save Our Homes and portability page.

Homestead timing and your base year

You must file for a homestead exemption to receive homestead benefits. In the first year you receive homestead, your assessed value is set equal to the market value. The 3 percent cap starts limiting increases the following year. Filing is still essential because it starts your base year. Details are in the county’s Homestead Exemptions FAQs.

Portability can soften the spike

If you had a Florida homestead on a prior home, you may be able to transfer some or all of that Save Our Homes benefit to your new Martin County home. You must apply for portability (form DR‑501T) with your homestead application by the March 1 deadline. This can substantially reduce your assessed value. Review county guidance and run estimates with the portability calculator.

Non-ad valorem assessments add up

Your tax bill includes charges that are not based on value, such as solid waste, stormwater, fire, or a Community Development District assessment. Many subdivisions have CDDs that levy annual operations and bond charges that appear on your tax bill. Learn what a CDD is in this overview of Community Development Districts. These fixed assessments can add hundreds or thousands per year, even if your assessed value is stable.

Millage varies across Stuart and Palm City

Your final tax rate is a mix of School Board, County, city of Stuart, and special district millages. The mix can differ between municipal Stuart and unincorporated Palm City. Your TRIM notice breaks down each authority and the rates applied to your taxable value. For current millage code context and parcel lookups, visit the Martin County Property Appraiser.

Timing, TRIM, and your escrow

Florida assesses property as of January 1. TRIM notices arrive in mid‑August and show proposed values, exemptions, millage rates, and non‑ad valorem assessments. If you disagree with value, you typically have about 25 days after TRIM mailing to petition the Value Adjustment Board. See the statewide TRIM overview from the Florida property appraisers association.

Your lender reviews escrow annually. A higher tax bill can create an escrow shortage and increase your monthly payment so the servicer can cover the new bill and repay the shortfall. For a plain‑English explainer, read this guide on how to read your escrow statement and shortages.

What to do next: a simple plan

• File your homestead exemption by March 1. This sets your base year and starts the cap the following year. Questions? Call the Martin County Property Appraiser at (772) 288‑5608 or review the Homestead Exemptions FAQs.
• If eligible, file portability (DR‑501T) with your homestead by March 1. Use the county portability calculator to estimate your transferred benefit.
• Watch for your TRIM notice in August and review it immediately. If you want to challenge value, follow the petition deadline shown. See the TRIM FAQs.
• Check for CDDs and non‑ad valorem charges before and after closing. Review HOA or CDD documents, subdivision plat, title commitment, and the tax roll. A quick primer on CDDs is here: what a CDD does.
• Ask your lender for a forward escrow estimate based on the new taxes. This can prevent surprises when your servicer completes the next escrow analysis. See Bankrate’s escrow statement explainer.

Real‑world buyer scenarios

• Seller had a long‑term homestead. Their assessed value was far below market because of Save Our Homes. You buy, the assessment resets closer to market, and your first full‑year bill jumps. If you filed homestead, your cap limits future increases starting the next year.
• You previously owned a Florida homestead. You buy in Stuart or Palm City, file homestead and DR‑501T by March 1, and port your benefit. Your assessed value is reduced, which can ease the first‑year impact.
• Your home sits in a CDD. Even if assessed value is steady, the annual CDD assessment and other non‑ad valorem charges can raise your total bill.

Before you buy: quick due diligence

• Request a tax estimate based on your purchase price. The Property Appraiser’s office can help you understand how just value and exemptions work.
• Ask whether the seller had homestead and how big their Save Our Homes differential might be.
• Confirm the parcel’s millage code and any non‑ad valorem assessments on the TRIM notice.

A rising first‑year tax bill is common in Martin County, but it should not catch you off guard. With the right filings, timely TRIM reviews, and a clear escrow plan, you can budget confidently and protect your long‑term tax position.

If you want a seasoned, local advisor to walk you through homestead timing, portability, and neighborhood assessments before you buy or sell, connect with Brad Westover.

FAQs

Why did my first full‑year property tax bill increase after buying in Stuart?

• When ownership changes, the assessed value typically resets closer to market value, the seller’s Save Our Homes cap is removed, and non‑ad valorem charges may apply, which together raise the bill, as outlined in the county’s Homestead Exemptions FAQs.

When does the 3 percent Save Our Homes cap start for my new homestead in Martin County?

• In your first homestead year, assessed value equals market value; the cap limiting increases begins the following year. See the Homestead Exemptions FAQs.

How does portability work if I moved to Palm City from another Florida homestead?

• File DR‑501T with your homestead application by March 1 to transfer up to $500,000 of your prior Save Our Homes benefit, per the county’s portability guidance and calculator.

What are non‑ad valorem assessments on my Martin County tax bill?

• Fixed or formula‑based charges like CDD, stormwater, solid waste, and fire appear on your bill and are not based on value; see this primer on Community Development Districts.

Why did my mortgage payment rise after my lender’s escrow analysis?

• A higher projected tax bill can create an escrow shortage, so servicers raise monthly escrow to cover the new bill and repay any shortfall; see Bankrate’s escrow statement explainer.