A Snowbird’s Guide to Buying a Second Home on the Treasure Coast: Taxes, Rentals, Insurance

Buying

Oct 24

Quick answer: Buying a second home on the Treasure Coast means no homestead exemption, a 10 percent yearly cap on increases in its non-school assessed value, association rules and rental taxes if you rent it, and different insurance and loan rules than a primary home. The homestead exemption goes only to a home that is your permanent residence on January 1 (s. 196.031(1)(a)), and Amendment 3 on the 2026 general election ballot would lower that cap to 5 percent beginning January 1, 2027 if 60 percent of voters approve. Rental restrictions an association adopts before you take title apply to you, rentals of 6 months or less are subject to the 6 percent state tax, and a condo rented that way in St. Lucie, Martin or Indian River County also falls under the county's 5 percent tourist development tax, per DOR's Form DR-15TDT (R. 10/26); I did not confirm how that tax treats houses. Canadian and other foreign buyers also face the IRS's 183-day substantial presence test and, on a later sale, FIRPTA withholding, which are questions for a cross-border tax adviser.

Here is what the statutes and agencies say about buying a second home here, as I read them on October 24, 2026, and who to ask about each part.

Can I get the homestead exemption on a second home in Florida?

No. The exemption requires that on January 1 you hold title and "in good faith" make the property your permanent residence or that of a legal or natural dependent (s. 196.031(1)(a), 2026 Florida Statutes). A winter home that is not your permanent residence does not qualify.

Subsection (6) also bars a person "receiving or claiming the benefit of an ad valorem tax exemption or a tax credit in another state where permanent residency is required" for it. That subsection names other states, not other countries, but the permanent residence test applies to everyone.

How much can property taxes go up on a second home?

A home without the homestead exemption that has "nine or fewer dwelling units" falls under s. 193.1554. In the first year it is assessed at just value, the property appraiser's market value (subsection (2)). After that, the change in assessed value "may not exceed 10 percent of the assessed value of the property for the prior year" (subsection (3)), for all levies other than school district levies. The cap limits assessed value, not the tax bill itself. After a sale, it goes back to just value as of the next January 1 (subsection (5)).

Hypothetical second home	Amount	Basis
First assessment	$400,000	Just value, s. 193.1554(2)
Market value the next January 1	$460,000	Assumed
Highest non-school assessed value	$440,000	10 percent of $400,000 added, s. 193.1554(3)
Value for school levies	$460,000	Not capped
Non-school value under a 5 percent cap	$420,000	If Amendment 3 passes, from January 1, 2027

Amendment 3 (CS/HJR 1-F), on the 2026 general election ballot, would cut that cap to 5 percent beginning January 1, 2027 if 60 percent of voters approve; the result is not known as of October 24, 2026. See my Amendment 3 post and why a seller's tax bill can mislead a buyer.

What if I later make Florida my permanent home?

The property appraiser treats intent to establish a permanent residence as "a factual determination" (s. 196.015), weighing factors such as (a) a declaration of domicile recorded in the county's public records, (e) Florida voter registration, (f) a Florida driver license and (h) the address on your federal income tax returns. Ask the appraiser about the homestead side and a CPA or tax adviser about your home state.

Can the HOA or condo association stop me from renting it?

Often, yes, and a buyer is usually bound. For homeowners' associations, s. 720.306(1)(h)1. says a rental restriction "enacted after July 1, 2021" applies only to an owner who "acquires title to the parcel after the effective date," or who consents. Under (1)(h)2., though, an amendment to "prohibit or regulate rental agreements for a term of less than 6 months" or to "prohibit the rental of a parcel for more than three times in a calendar year" applies to all owners.

For condominiums, s. 718.110(13) says an amendment "prohibiting unit owners from renting their units or altering the duration of the rental term," or limiting how many times owners may rent, applies only to owners who consent and to those who "acquire title to their units after the effective date of that amendment," with no short-term exception like the HOA statute's. If renting matters to you, have a Florida real estate attorney review the declaration, amendments and rules before you sign.

Renting it out: the license and the taxes

The Department of Business and Professional Regulation (DBPR) requires a vacation rental license "if you are renting an entire unit more than three times in a calendar year" for periods under 30 days or one calendar month, whichever is less, or if it is advertised as regularly rented. Its guide, viewed October 24, 2026, lists a $50 application fee and a $10 Hospitality Education Program (HEP) fee plus the license fee, $170 for a full year or $90 for a half year for a single unit.

Taxes draw a different line. Florida's 6 percent tax on "the total rental charged" (s. 212.03(1)(a)) does not apply to a tenant with "a bona fide written lease for longer than 6 months in duration for continuous residence" (s. 212.03(4)). The county tourist development tax reaches rentals "for a term of 6 months or less" in the lodging its statute lists, which names condominiums and apartments but not single-family houses (s. 125.0104(3)(a)1.). The Department of Revenue's Form DR-15TDT (R. 10/26) lists it at 5 percent in St. Lucie, Martin and Indian River counties, "in addition to the 6% state sales tax and any applicable discretionary sales surtax," and cautions that not every county reports rate changes to DOR, so confirm the rate with the county.

So one three-month seasonal rental of a St. Lucie County condominium may need no DBPR license and still be taxed: on $12,000 of rent, $720 of state tax and $600 of tourist development tax, $1,320 before any surtax. I found no DOR or county statement on how the tourist tax applies to a house, so ask the county tax collector, and no Port St. Lucie vacation rental ordinance, so ask the city. My guest house and rental post covers how local rules fit.

Can I use a second home mortgage and still rent it?

Fannie Mae's Selling Guide (B2-1.1-01, October 5, 2022) says a second home "must be occupied by the borrower for some portion of the year," "is restricted to one-unit dwellings" and "must not be rental property or a timeshare arrangement," and the borrower must have exclusive control over it, with no agreement giving "a management firm control over the occupancy." If the lender identifies rental income, the loan can still be delivered as a second home "as long as the income is not used for qualifying purposes." If you plan to use a rental program, tell the lender before you apply.

Insuring a home you are not in all year

Citizens Property Insurance says of its HO-3 policy, "The owner must live in the home as their primary residence." Its DP-3 dwelling fire policy is available for "tenant-occupied properties" and "properties that otherwise may not qualify for an HO-3 or HO-8 policy," and its HO-6 condo policy is "Available to condominium-unit owners who live in the condominium unit." I found no Citizens page on seasonal or vacant homes and no policy text on vacancy clauses, so ask a licensed insurance agent which form fits and what the policy requires while you are gone.

For flood, federal law sets the NFIP's annual surcharge at $250 for "a residential property that is not the primary residence of an individual," against $25 otherwise (42 U.S.C. 4015a(b)). My Port St. Lucie flood zone post covers zones and Citizens' flood requirement.

Canadian and other foreign buyers: the 183-day test and FIRPTA

The IRS's substantial presence test is met with "31 days during the current year, and" "183 days during the 3-year period" ending with it, counting all of the current year's days, one-third of the prior year's and one-sixth of the year before that.

Days in the U.S. in each of 2024, 2025 and 2026	Weighted count for 2026	Test met?
120	120 + 40 + 20 = 180	No, under 183
150	150 + 50 + 25 = 225	Yes, though the closer connection exception may apply

The closer connection exception requires being "present in the United States less than 183 days during the year," a tax home in one foreign country "during the entire year," a closer connection to it, and no steps toward a green card. The IRS says "You must file Form 8840, Closer Connection Exception Statement for Aliens," attached to a return or mailed by the return due date.

When a foreign owner sells, the buyer withholds "15 percent of the amount realized" under FIRPTA (26 U.S.C. 1445(a)). There is no withholding if the buyer acquires the home "for use by him as a residence" for $300,000 or less (subsection (b)(5)), and 10 percent for such a residence up to $1,000,000 (subsection (c)(4)). The IRS says the residence rule requires an individual buyer who, or whose family, has "definite plans to reside at the property for at least 50% of the number of days the property is used by any person" in each of the first two 12-month periods after the sale; vacant days do not count, but days it is rented do. On a $600,000 sale, that is $90,000 withheld, or $60,000 if the residence rule is met. Because the buyer withholds, this matters when you buy from a foreign seller too. I did not research the Canadian side, so work through both countries' rules with a cross-border tax adviser.

Can I close without flying down?

A Florida online notary who is physically in Florida may act wherever the principal is, by audio-video (s. 117.265(1) and (2)). For a principal outside Florida, the notary must confirm the principal wants a Florida notary and Florida law (subsection (3)). Identity can be shown by remote ID presentation, credential analysis and identity proofing (subsection (4)(b)); if those checks fail, "the online notary public may not perform the online notarization." Ask the title company or closing attorney early whether your lender and every document will accept it.

Remote closings lean on email, and the FBI's Internet Crime Complaint Center (IC3) 2025 annual report describes cases of buyers "closing on a home when they received an email impersonating their legitimate attorneys" and of a compromised "title company" email with wire instructions. It counts 24,768 business email compromise complaints nationwide, across all industries, with $3,046,598,558 in losses. Across all complaint types, it ranks Florida third among states, with 71,843 complaints and $1,596,138,595 in losses. If money goes astray, the report says "time is of the essence": "Immediately, contact your financial institution and request a recall of the funds," and file a complaint at www.ic3.gov. Treat wire instructions that arrive by email with suspicion, and confirm them directly with your title company or closing attorney before you send money.

What I could not confirm

Beyond the gaps noted above, I did not read DOR's 2026 surtax table, and Citizens' HO-6 wording leaves unclear whether it fits a part-year owner. Before you write an offer:

Ask the association in writing for its minimum rental term, yearly limit and any approval process.
Ask the county property appraiser how the home will be assessed once the sale resets it to just value.
If you are not a U.S. citizen or green card holder, see a cross-border tax adviser about the 183-day test, Form 8840 and FIRPTA.

Questions snowbirds ask about buying a second home

Can I get the homestead exemption on a winter home in Florida?

Not unless it is your permanent residence on January 1, under s. 196.031(1)(a). A person receiving a residency-based property tax exemption or credit in another state is also barred, under s. 196.031(6).

How much can property taxes rise on a Florida second home?

After the first year, its non-school assessed value may rise no more than 10 percent a year, and it resets to just value after a sale (s. 193.1554). Amendment 3 on the 2026 general election ballot would lower the cap to 5 percent beginning January 1, 2027 if 60 percent of voters approve.

Can my HOA stop me from renting my second home?

HOA rental restrictions enacted after July 1, 2021 bind owners who take title afterward or consent, and an amendment limiting rentals under 6 months or more than three times a year binds every owner (s. 720.306(1)(h)). Condo rental amendments bind consenting owners and later buyers (s. 718.110(13)).

What taxes apply if I rent my Treasure Coast home short term?

Rentals of 6 months or less are subject to the 6 percent state tax plus any discretionary sales surtax, and DOR lists a 5 percent county tourist development tax in St. Lucie, Martin and Indian River counties, which the statute applies to condominiums among other lodging (ask the county about houses). DBPR requires a vacation rental license above three rentals a year of under 30 days or one calendar month, or when the unit is advertised as regularly rented.

I am Canadian. Will spending winters in Florida make me a U.S. tax resident?

It can under the IRS substantial presence test, which weighs 183 days over three years. The closer connection exception also requires fewer than 183 days in the year, a tax home and closer connection in one foreign country, no green card steps, and Form 8840 filed by the return due date, so review your days with a cross-border tax adviser.

Can I close on a Florida home without being there?

Florida allows online notarization by audio-video, with remote ID checks and identity proofing, under s. 117.265. Ask the title company or closing attorney whether your lender and documents will accept it.

Talk with William. Weighing a winter home on the Treasure Coast? Send me the communities you are considering, your price range and the months you expect to be here, by call or text. I will gather each community's rental rules and recent closed sales, flag the rules that would limit renting while you are away, and list the questions to take to your lender, insurance agent and tax adviser. Call or text (772) 800-2274 or send a message.

General information, not legal, tax, lending or insurance advice, and not a guarantee of any price, fee, date or outcome. Amendment 3 is on the 2026 general election ballot, DBPR fees and tax rates change, and I did not confirm a Port St. Lucie vacation rental ordinance or how the tourist development tax applies to houses; confirm with the county property appraiser and tax collector, DBPR, your association, a licensed insurance agent, your lender, a Florida real estate attorney and, for U.S. and Canadian tax questions, a cross-border tax adviser. References are as reviewed on October 24, 2026. William Merchant, REALTOR®, RE/MAX Gold. Each RE/MAX office is independently owned and operated. Equal Housing Opportunity.

Sources

second homesnowbirdsnon-homestead property taxvacation rental rulestreasure coast

William Merchant