Florida homeowners who purchased new construction in 2022, 2023, or 2024 often assume their purchase price was the right value — and that therefore they cannot appeal. This is not always true. Several factors can make your new construction home eligible for a successful property tax appeal: market corrections since your closing, builder incentives not reflected in your sale price, comparable resale sales below your purchase price, and assessment of features that do not yet exist. Understanding when and how to appeal a new construction assessment can save Florida homeowners hundreds or thousands per year.
How New Construction Homes Are Assessed in Florida
Florida property appraisers assess new construction at full just (market) value annually, with no Save Our Homes cap protection until the owner establishes homestead exemption. For the first year or two after purchase, the assessed value is typically anchored near the purchase price. As market conditions change, the appraiser may increase or decrease the assessment based on market trends — but the purchase price remains the primary benchmark.
- ✓No Save Our Homes cap in first years: you are taxed on close to full market value
- ✓Assessment anchored near purchase price initially: appraisers use your closing as the primary data point
- ✓Annual reassessment: Florida reassesses all property annually — values can move each year
- ✓Once homestead is established, the 3% SOH cap begins protecting you from future increases
- ✓Apply for homestead by March 1 of the year following your purchase
When New Construction Homeowners Can Successfully Appeal
Three situations create strong appeal grounds for new construction homeowners. First, if builder pricing has declined since your closing and comparable resales are selling for meaningfully less than you paid, your assessed value may exceed current market value. Second, if your purchase price included above-market financing incentives (mortgage rate buydowns, closing cost credits) not reflected in the recorded sale price, the effective value was lower than the price suggests. Third, if your assessment includes features not yet complete at the assessment date (January 1), you may be paying taxes on an unfinished home.
- ✓Market correction: If comparable resales are selling 10%+ below your purchase price, you have grounds to appeal
- ✓Builder incentives: Rate buydowns (e.g., 3-2-1 buydown) reduce effective purchase price — document and present
- ✓Unfinished improvements: If your home was not complete on January 1, 2026, it should not be assessed as complete
- ✓Declining builder pricing: If the same builder is now selling comparable lots at lower prices, this is strong evidence
- ✓New construction glut: High inventory in your development can suppress resale values below purchase prices
Building Your New Construction VAB Petition
The most powerful evidence for a new construction appeal is comparable resale sales — not new construction sales. New construction sales from the same builder may include incentives and will tend to anchor near your purchase price. Resale transactions of previously owned homes in your community or nearby that closed at lower prices per square foot are stronger evidence that the current market does not support your assessed value.
- ✓Use resale comps, not new construction comps — resale comps show true market clearing prices
- ✓Document builder incentives: mortgage rate buydowns, closing cost credits, free upgrades
- ✓Show builder price reductions on comparable lots or models since your closing
- ✓For unfinished features: county permit records showing construction status on January 1
- ✓HOA disclosures showing pending assessments or deferred maintenance also reduce value
TaxAppeal USA: $89 Flat for New Construction Appeals
TaxAppeal USA files VAB petitions for new construction homeowners using the same flat $89 service. We pull your assessment data from the county appraiser, analyze comparable resale sales in your community, identify any builder incentive patterns, generate a DR-486 petition citing Florida Statute §194.011, and file via USPS certified mail. If your assessment is above current resale market levels, we build the strongest possible case.
Frequently Asked Questions
Can I appeal my property taxes if I just bought a new construction home? ▾
Yes. New construction homeowners can file a VAB petition if their assessed value exceeds current market value. The most common grounds are market corrections since closing, builder incentives that inflated the nominal sale price, and new construction inventory that has suppressed resale values.
Does my purchase price prevent me from appealing? ▾
Not necessarily. The property appraiser uses your purchase price as the primary benchmark, but if subsequent market conditions show that comparable properties are selling for less, you can argue that current market value is below your purchase price.
What are builder incentives and why do they matter? ▾
Builders frequently offer incentives like mortgage rate buydowns, free upgrades, or closing cost credits that reduce the effective purchase cost without reducing the recorded sale price. These incentives inflate the comparable sale data used by the property appraiser. Documenting these incentives can support a lower just value.
When should I apply for Florida homestead exemption on my new home? ▾
Apply by March 1 following your year of purchase. For example, if you closed in 2025, apply by March 1, 2026. Homestead activates the Save Our Homes cap limiting future increases to 3% per year.
How much can new construction homeowners save? ▾
It depends on how much values have corrected since your closing. In high-construction markets like Pasco County, Osceola County, and St. Johns County, resale values are often 10-15% below 2022-2023 purchase prices. A 10% reduction on a $450,000 home saves $45,000 in assessed value — approximately $675-900 per year.
Does TaxAppeal serve new construction communities throughout Florida? ▾
Yes. TaxAppeal USA files VAB petitions for new construction homeowners in all 67 Florida counties.