Davie FL vs New Jersey Property Taxes: What Buyers Save in 2026

Every New Jersey buyer asks me the same question before they call. Is the Florida tax savings actually real, or does the insurance eat all of it? Here is the honest math, line by line, so you can see the full number before you make an offer on a Davie home.

The real number a New Jersey buyer saves

New Jersey carries the highest effective property tax rate in the country. Depending on the county it runs between 1.89 and 2.46 percent of assessed value. A Bergen County homeowner often pays $11,000 to $15,000 a year in property tax alone, and the New Jersey Division of Taxation publishes the county tables that confirm it.

Davie sits in Broward County, Florida. The median effective rate here is about 1.29 percent, and it varies by ZIP. In the 33331 area it runs closer to 1.04 percent. In 33317 it runs closer to 1.69 percent. Same town, different tax load, because the assessed values and the mix of overlapping districts change block to block.

On a $500,000 single family home the property tax difference alone is roughly $5,000 to $7,600 a year. That is before you add the second half of the savings, which is income tax. Florida charges zero state income tax. New Jersey takes 5 to 6 percent on a $150,000 to $200,000 household. That is another $9,500 to $12,000 a year that stays in your pocket in Davie.

Add the two together and a typical relocating household saves $15,000 to $20,000 a year. For a Bergen County family the combined number often clears $20,000. Our full Davie cost of living breakdown shows how that flows through to groceries, utilities, and everyday spending too.

How Davie property tax is actually calculated

Florida does not use one flat rate. Your bill is the sum of several millage rates set by the county, the town, the school board, and a few special districts. One mill equals one dollar of tax for every thousand dollars of taxable value.

For 2026 the Broward County operating millage came down to 5.6658 mills, and the Town of Davie municipal rate sits at 5.8118 mills. The Broward County Property Appraiser lists every district on your parcel and shows how they stack into the total rate.

The number that makes Davie cheaper than New Jersey is not just the rate. It is the Florida homestead exemption. When the home is your primary residence you get up to $50,000 knocked off the taxable value. The first $25,000 applies to all taxes. The second $25,000 applies to everything except school taxes. On a $500,000 home that exemption alone saves you close to $900 a year, and the Florida Department of Revenue confirms the mechanics.

The first year sticker shock nobody warns you about

Here is the part that trips up buyers coming from New Jersey. You do not inherit the seller’s low tax bill.

Florida caps how fast a homesteaded property’s assessed value can rise. It is called Save Our Homes, and it limits the increase to 3 percent a year. Over time that cap holds a long time owner’s assessed value far below market value. When you buy that home, the cap resets. Your first year assessed value is the market value, which is usually your purchase price. So the tax bill you see on the current owner’s record is not the bill you will pay.

The Town of Davie and the county reassess the property to full market value the January after the sale closes. That is why some new owners open their first Florida tax bill and find it higher than what the listing showed. It is not a mistake. It is the reset.

The protection starts working for you in year two. Apply for homestead in your first year, and starting the next year your own assessed value is capped at 3 percent. From that point forward your Davie tax bill grows slowly and predictably while New Jersey bills keep climbing. That is where the decade long gap between the two states really opens up.

What Florida gives back on the insurance side

I will not pretend the tax savings comes free. Florida homeowners insurance costs more than New Jersey, and any honest comparison has to put that on the table.

A New Jersey policy often runs $1,000 to $2,000 a year. A Davie single family policy commonly runs $3,000 to $8,000 depending on the roof age, the construction type, and the flood zone. In some cases the insurance premium is larger than the property tax itself. There is relief in motion for 2026, with Citizens and several private carriers filing rate cuts, but you should budget for the higher number, not the promise. Our Davie home insurance guide walks through what actually moves your premium and how to lower it.

Even with the higher insurance, most New Jersey buyers still come out ahead by a wide margin. The property tax and income tax savings usually run two to four times the insurance increase. The point is not that insurance erases the win. The point is that you compare the full monthly cost, not the tax rate on its own.

How to compare the full monthly cost before you buy

Do not compare tax rate to tax rate. Compare total monthly carrying cost to total monthly carrying cost. Here is the exact sequence I run for relocating buyers.

1. Take the Davie purchase price and multiply by 1.29 percent for a first pass property tax estimate. Adjust up or down once you know the ZIP.

2. Subtract the homestead benefit if the home will be your primary residence.

3. Get a real insurance quote on the specific address, not a statewide average, because roof age and flood zone swing it hard.

4. Add any HOA dues, which many Davie acreage and no HOA properties do not carry at all.

5. Add your New Jersey state income tax back into the comparison as savings, since Florida does not charge it.

6. Compare that full Florida monthly number against your current New Jersey monthly number, tax and insurance included.

When you run all six steps the Davie number almost always lands lower for a New Jersey household, and now you know why instead of guessing. If you are earlier in the process, our New Jersey to Davie relocation checklist covers the timeline and the paperwork, and the Davie closing cost guide shows what you pay at the table.

Frequently Asked Questions

Do I really save money moving from New Jersey to Davie once insurance is included?

Yes, for most households. The property tax and income tax savings together usually run $15,000 to $20,000 a year, while the higher Florida insurance adds a few thousand. The net result stays strongly positive. Compare full monthly cost, tax and insurance combined, to confirm it for your specific home.

Why is my first Davie tax bill higher than the seller’s?

Because the Save Our Homes 3 percent cap resets when the home changes hands. Your first year assessed value is market value, usually your purchase price, not the seller’s long capped value. Your own cap protection begins the year after you apply for homestead.

What is the effective property tax rate in Davie, Florida?

The Davie median effective rate is about 1.29 percent, and it varies by ZIP. It runs closer to 1.04 percent in 33331 and closer to 1.69 percent in 33317. New Jersey by contrast runs 1.89 to 2.46 percent, the highest in the nation.

Does Florida have a state income tax?

No. Florida charges zero state income tax. New Jersey takes roughly 5 to 6 percent on a $150,000 to $200,000 household, so a relocating buyer saves an additional $9,500 to $12,000 a year on income tax alone.

How much is the Florida homestead exemption worth in Davie?

Up to $50,000 comes off your taxable value on a primary residence. The first $25,000 applies to all taxes and the second $25,000 excludes school taxes. On a $500,000 Davie home that saves close to $900 a year, and it also unlocks the 3 percent annual cap going forward.

Ready to run your own numbers?

If you are moving from New Jersey to Davie, I will build you the full side by side. Your current New Jersey cost, your projected Davie cost, tax and insurance and income tax included, on real addresses you are considering. Book a Davie strategy call at https://bit.ly/daviestrategycall or call (954) 235-5783 and we will get the actual number in front of you before you make an offer.

Contact

Anthony Spitaleri

Coldwell Banker, Weston office serving Davie, Florida

Phone: (954) 235-5783

Web: livingindavieflorida.com

About the Author

Anthony Spitaleri is a Broker Associate with Coldwell Banker, one of the most established residential real estate brands, with approximately 2,700 offices globally, founded in 1906. A Davie native who returned home in 2025 after 13 years in Miami Beach, Anthony specializes in luxury homes and estates above $1 million, acreage and equestrian properties with no HOA, and relocation buyers moving to Davie from out of state. He created livingindavieflorida.com, the most in-depth independent Davie real estate resource available, with in-depth coverage of Davie’s gated communities, acreage and equestrian properties, and luxury estates, plus original weekly market data, interactive tools, Town Council recaps, and a 24/7 AI concierge. Anthony has been licensed in real estate since 2013 (BK3281907), is a Certified Strategic Coach through Coaching Services International (CSI), an active member of the Davie Cooper City Chamber of Commerce, and a weekly volunteer at Bit by Bit Therapeutic Riding Center in Davie. Learn more about Anthony.