Here's how much cutting property taxes could save you in Pensacola

Florida was once a place people dreamed of retiring to, and it wasn't just because of its palm trees and emerald waters. The state's tax policies were attractive to businesses, snowbirds, retirees and anyone else interested in stretching their dollar out as much as possible.

Those tax policies haven't changed much since 2020, but plenty of other things have, including an explosive rise in the cost of living in the state. In April, Florida Tax Watch, a nonpartisan government watchdog, published a report that showed cost-of-living growth surging to 5.8% per year in the 2020s, nearly five times the annual 1.3% in the 2010s.

Prices are rising globally, but lawmakers in the Sunshine State just voted to put an amendment to cut property taxes on homestead properties on the midterm ballot in November. They say that the measure could help give the majority of homeowners some extra breathing room during these economically burdensome times.

Local governments rely heavily on property taxes to support everything from schools and infrastructure maintenance to police and other emergency services.

Research from the Florida Policy Institute estimates that Florida counties and municipalities would have to find a way to recuperate about $4.8 billion annually in lost tax revenue. Higher sales tax and service fees, raising taxes on non-homestead properties or simply cutting existing services are a few options counties could leverage to offset the lost revenue.

Pensacola and Escambia County voters who head to the polls on Nov. 3 will get a chance to vote on the measure, titled "Save our Homes from Excessive Property Taxes." Here's how much they could expect to save if the amendment is approved.

Quick note about the data: These averages were calculated using the assessed values for homestead properties from the respective area in 2025. The figures are baseline estimates focused solely on the proposed expansion of the homestead exemption; no other exemptions were factored. The data was provided by the Florida Department of Revenue.

How much Escambia County homeowners could save from property tax cut

The average assessed value for homestead properties in Escambia County is $174,939. The property tax bill for the typical homestead is around $1,809 per year, or about $151 per month.

Here's what that tax bill would look like if the new property tax amendment passes:

• Estimated year‑1 savings: $804 per year, $67 per month
• Estimated year‑2 savings: $1,005 per year, $84 per month

How much Pensacola homeowners could save from property tax cut

Pensacola's average assessed homestead value is $210,721. The average tax bill comes out to $2,868 per year, or $239 per month.

Here's what that tax bill would look like if the new property tax amendment passes:

• Estimated year‑1 savings: $1,165 per year, $97 per month
• Estimated year‑2 savings: $1,872 per year, $156 per month

How much downtown Pensacola homeowners could save from property tax cut

The Downtown Improvement Board is a special district that encompasses Pensacola's downtown urban core. The average assessed homestead value is around $195,107, and the average tax bill is $2,892, or $241 per month.

Here's what that tax bill would look like if the new property tax amendment passes:

• Estimated year‑1 savings: $1365 per year, $114 per month
• Estimated year‑2 savings: $1,981 per year, $165 per month

How much Century homeowners could save from property tax cut

The town of Century has an average assessed homestead value around $58,766. Average annual property taxes runs about $595 per year, or about $50 per month.

Here's what that tax bill would look like if the new property tax amendment passes:

• Estimated year‑1 savings: $280 per year, $23 per month
• Estimated year‑2 savings: $280 per year, $23 per month (no change)

How much Pensacola Beach homeowners could save from property tax cut

The average assessed homestead value on Pensacola Beach is $477,123. That puts the average property tax bill at $5,566, or about $464 per month.

Here's what that tax bill would look like if the new property tax amendment passes:

• Estimated year‑1 savings: $736 per year, $61 per month
• Estimated year‑2 savings: $1,472 per year, $123 per month

What's the most Escambia, Pensacola homeowners could save from property tax cut?

The maximum amount of first-year savings a homesteader can expect to receive can be found quickly by looking at the area's non-school millage rate. Here is the maximum amount Escambia County homeowners can expect to save based on where they live in the county:

Why are Pensacola Beach's savings so low?

The first-year expansion to a $150,000 non‑school exemption wipes out a large share of the non‑school‑taxable value for typical homes in other parts of Escambia County, and the second‑year jump to $250,000 pushes many of those homes’ non‑school taxes all the way to zero.

On Pensacola Beach, though, the average homestead is much higher in value, so even after a $250,000 non‑school exemption, about $227,123 of value remains subject to non‑school taxes.

Pensacola Beach’s non‑school millage is also considerably lower than Pensacola’s, at 7.3595 mills compared to 11.649 mills. Because every extra dollar of exempt value only saves tax at that non‑school rate, a lower rate means each $100,000 of new exemption produces fewer dollars of savings.

Non‑school millage makes up a smaller share of the total property tax bill on Pensacola Beach, so the homestead expansion translates into smaller dollar savings there than in higher‑rate areas.