2025 millage rates, Homestead Exemption math, the senior exemption most buyers don't know about, Save Our Homes portability, and the CDD line that doesn't show up in the effective rate — every number explained.
Florida property taxes are lower than most states — Lee County's effective rate runs around 1.10–1.34% depending on municipality. But "effective rate" is a misleading simplification for 55+ buyers. It doesn't account for CDD non-ad valorem assessments (which can add $1,800–$3,200/year at Pelican Preserve and Del Webb Oak Creek), doesn't reflect the senior exemptions that can dramatically reduce your bill, and doesn't explain the Save Our Homes cap that makes Florida increasingly advantageous the longer you stay. Here is the full picture.
Millage rates vary by location within Lee County. Unincorporated Lee County (most 55+ communities outside city limits) runs approximately 13.4 mills. The City of Cape Coral has its own millage on top of the county rate. Rates are set annually by the Board of County Commissioners.
| Jurisdiction | Approx. Total Millage | Effective Rate (after homestead) |
|---|---|---|
| Unincorporated Lee County | ~13.4 mills | ~1.10–1.20% |
| City of Cape Coral | ~17.0–17.5 mills | ~1.30–1.40% |
| City of Fort Myers (in-city) | ~16.0–16.5 mills | ~1.25–1.35% |
| Bonita Springs / Estero | ~13.0–13.8 mills | ~1.08–1.18% |
Florida's Homestead Exemption reduces the assessed value of a primary residence by $50,722 (2025 figure, indexed to the Consumer Price Index under Amendment 5). This applies to the first $50,722 of value — you pay taxes on assessed value minus $50,722.
You own a $450,000 home in unincorporated Lee County (13.4 mills).
Assessed value: $450,000
Minus homestead exemption: –$50,722
Taxable value: $399,278
Tax at 13.4 mills: $399,278 × 0.0134 = ~$5,350/year
Without homestead: $450,000 × 0.0134 = $6,030/year. The exemption saves you ~$680/year at this price point.
To qualify: You must be a Florida resident using the property as your primary residence as of January 1 of the tax year. Apply at the Lee County Property Appraiser's office (leepa.org) before March 1 of the year you want the exemption to apply.
In addition to the standard Homestead Exemption, Lee County grants a Senior Exemption of up to $50,000 to qualifying residents who are 65 or older and have household income below the IRS low-income limit (approximately $36,000 for 2025 — confirm with the Property Appraiser's office as limits adjust annually).
If you qualify, your taxable value is reduced by an additional $50,000 on top of the standard Homestead Exemption. Combined, that's $100,722 off assessed value — meaningful at any price point, and potentially eliminating most of your tax bill at the lower end of the market.
| Home Value | Homestead Only | Homestead + Senior ($50K add'l) | Annual Savings from Senior Exemption |
|---|---|---|---|
| $300,000 | ~$3,347/yr | ~$2,677/yr | ~$670/yr |
| $450,000 | ~$5,352/yr | ~$4,682/yr | ~$670/yr |
| $600,000 | ~$7,357/yr | ~$6,687/yr | ~$670/yr |
Senior exemption saves approximately $670/year ($56/month) at current Lee County unincorporated millage. Apply at leepa.org. Income limits apply.
Once you establish homestead in Florida, the Save Our Homes cap limits assessed value increases to 3% per year or the Consumer Price Index, whichever is lower — regardless of how much your home's market value increases. In a rising market, this becomes an increasingly valuable protection.
Example: A buyer who established homestead in 2015 at $300,000 assessed value has had their assessed value increase by at most 3% per year. In 2025, after 10 years, their assessed value is capped at approximately $403,000 — even if the home's market value has risen to $600,000. They pay taxes on $403,000, not $600,000.
If you are selling a Florida home where you have accumulated Save Our Homes savings, you can "port" those savings to your new Florida property. Portability allows you to transfer up to $500,000 of your SOH benefit to a new homestead, reducing the assessed value of your new home in year one.
This is a significant benefit for buyers moving within Florida — and a genuine advantage for Florida residents over out-of-state buyers who are starting fresh with no portability benefit. Work with a Florida real estate attorney or the Lee County Property Appraiser to calculate your specific portability amount before buying.
Community Development Districts (CDDs) finance community infrastructure through municipal bonds, then collect annual debt service payments from homeowners as "non-ad valorem assessments" on the property tax bill. These are legally a tax — they appear on your Lee County tax bill — but they are calculated separately from the millage rate and are NOT included in effective tax rate comparisons.
When someone says Lee County has a 1.10% effective tax rate, that calculation does not include CDD assessments. A buyer at Pelican Preserve who sees "1.10% effective rate" and applies it to a $500K home expects ~$5,500/year. Their actual bill: $5,500 + $2,000–$3,200 CDD = $7,500–$8,700/year.
Lee County 55+ communities with active CDDs: Pelican Preserve, Del Webb Oak Creek. Communities with no CDD: Heritage Cove, Cinnamon Cove, Brandywine, Gulf Harbour (verify), and the manufactured home communities.
How to find the CDD amount for a specific parcel: Visit leepa.org, search the address, and review the tax detail. The CDD line appears under "Non-Ad Valorem Assessments." Alternatively, ask the seller or listing agent for the last two years of tax bills.
A specialist can pull the actual tax bill, calculate the CDD line, apply your specific exemptions, and give you the real annual number — not a county average.
Free Consultation →