Palm Beach County Homeowners Brace for Potential Property Tax Increases in 2026

Understanding the Stability of the Millage Rate Amid Rising Property Values

Despite a steady county millage rate of $4.50 per $1,000 of assessed property value, homeowners in Palm Beach County should prepare for likely increases in property taxes in 2026. The increase is primarily attributed to a significant rise in taxable property values.

Key Factors Driving Potential Tax Increases

• Property Value Surge: Preliminary estimates indicate a nearly 8% rise in countywide taxable property values, largely fueled by $5 billion in new construction.
• Stable Millage Rate: The millage rate remains unchanged, but rising property values mean many homeowners will pay more in taxes.

How Property Assessments Work

Florida law imposes a 3% cap on property tax increases for homesteaded properties (primary residences). This cap affects how quickly homeowners might see increases.

Assessment Examples:

• Homesteaded Properties: If values surged by 30% in 2023, those with homesteaded properties would only see a 3% rise in assessments. As properties appreciate, the state law mandates the recapture of taxable value previously lost.
• Non-Homesteaded Properties: These can be assessed up to 10% annually, resulting in potentially higher tax bills.

Budgeting Challenges Ahead

The county is grappling with various budgetary pressures, including:

• $45 million in additional presidential security costs for visits from former President Trump.
• $6 million loss in state revenue sharing.
• $7.6 million drop in sales tax revenue set to expire.
• $3.3 million decline in electrical franchise fees.

In light of these challenges, Palm Beach County commissioners are collaborating to finalize a budget plan. At a recent meeting, they instructed officials to maintain the millage rate at $4.50.

Income from the Millage Rate

The $4.50 county millage rate is projected to generate approximately $1.5 billion, reflecting a 7.4% increase (or $105.4 million) in revenue. Additional millage rates add to property tax burdens:

• Fire Rescue: $3.46 for unincorporated areas.
• Library System: An additional 55 cents.

These separate budgets have risen by 7% and 6% respectively, impacting overall tax obligations for residents within the county.

Record Budget for Sheriff’s Office

The Palm Beach County Sheriff’s Office is expected to manage a record budget of $1.1 billion. Despite a $37 million cut, overall budget growth remains substantial.

Additional Budget Considerations:

• Increased salaries for county employees, aiming to address hiring challenges.
• An anticipated $10 million in additional property tax revenues to support the sheriff’s budget in the upcoming year.

Looking Forward: Budget Timeline

The county commission will finalize the millage rate on July 8, with public hearings scheduled for September 9 and the final budget adoption set for September 16. The fiscal year 2026 budget will take effect on October 1.

Conclusion

With a stable millage rate and rising property values, Palm Beach County homeowners should remain vigilant about potential tax increases in 2026. While the county works to address its budgetary concerns, the fundamental structure and rising assessments present ongoing challenges for residents.

For more detailed information about property assessments in Florida, consider reviewing resources from Florida Department of Revenue.

Stay informed on local tax rates, property values, and government budgeting strategies to navigate the potential changes ahead.