Closing in January when the property taxes are super low

When someone has lived in a home for many years, their property taxes are often artificially low because of long-standing exemptions and assessment caps (like Florida’s Save Our Homes).

If you close in January of the following year, here’s what happens:

What you get at closing

Property taxes are paid in arrears

At a January closing, the tax proration is based on the prior year’s tax bill

That bill still reflects:

The long-term owner’s capped assessment

Their homestead exemption

As the buyer, you effectively benefit from those lower taxes for that entire year

Why the increase doesn’t hit right away

The county does not immediately reassess at closing

The new assessed value is set as of January 1 of the year after the sale

The higher tax bill is issued the following year

Timeline example

January 2026 – You close on the home

All of 2026 – Taxes are based on the prior owner’s low, capped value

November 2026 – You receive the first tax bill, still using the old assessment

January 2027 – Reassessment takes effect at the higher value

November 2027 – You receive the higher tax bill

Key takeaway

You enjoy the lower taxes for the full year after closing

The adjustment does not occur until the second year

This is why January closings after a long-term owner can look very attractive up front—but the increase is delayed, not eliminated

Why this matters

Many buyers think the taxes shown at closing are permanent. In reality, they’re just on a one-year lag due to how property tax assessments work.

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