Updated June 27, 2025
Taxable property values in Palm Beach climbed an average of 7.9 percent during the last year, according to preliminary data released Thursday by Palm Beach County Property Appraiser Dorothy Jacks.
The increase elevates the town’s total taxable property value to more than $34.5 billion, according to Jacks’ report. Among the county’s 39 municipalities, Palm beach is second only to Boca Raton, which stands at $40.2 billion.
Countywide, taxable values were up by an average of 8.2 percent to nearly $343 billion, according to Jacks’ office. The increase was largely driven by new construction, which has a net taxable value of just under $5.5 billion, according to Jacks.
“For the second time in our county’s history, new construction topped $5 billion,” Jacks said in a news release. “This is new value that is being taxed for the first time this year, adding revenue to many districts.”
Property values are flattening out in many areas of the county where the average increase was around 4 to 5 percent. Jacks said property values within the town of Palm Beach fared better overall because the town is so unusual.
“Because it is such a small group of properties (9,256 parcels out of about 682,000 parcels countywide) at such a high level of value, it’s not necessarily seeing the same economic dynamics as the rest of the county,” Jacks said. “Palm Beach is sort of its own special place.”
Bob Miracle, Palm Beach’s deputy town manager for finance and administration, said the 7.9 percent average increase in Palm Beach reflects a real estate market that has cooled considerably. Last year’s 9.5 percent jump followed dramatic double-digit increases of 18 percent and 13.3 percent in 2022 and 2023, respectively.
“The average price of homes sold in Palm Beach continued to go up during the past year, but the number of home sales has gone down during the past couple of years,” Miracle said.
The 7.9 percent average increase in taxable values does not mean the town will collect that much more in property tax revenue, Miracle said.
Annual increases in the assessed values of homesteaded properties are legally capped at 3 percent. Roughly half the properties on the island are homesteaded, Miracle said. (Assessments on properties without the homestead exemption are capped at 10 percent).
Whenever homesteaded properties are sold, they are reassessed at around 75 percent of their current market value. Miracle said the resulting “reset in valuation” results in more property tax revenue for the town, but that is occurring less often because the market has cooled.
Palm Beach typically collects 17 to 18 percent of the property taxes paid by property owners on the island. The remainder goes to Palm Beach County, the county schools, and other taxing districts.
The new taxable values are based on market conditions as of January 1, 2025.
Taxing authorities use the preliminary valuations to prepare their upcoming budgets and determine their property tax rates for the coming year. Palm Beach’s Town Council is scheduled to hold a public workshop on the town’s proposed 2025-26 budget on July 10, beginning at 9:30 a.m., at Town Hall. Final approval of the new budget and property tax rate occurs each year at two public hearings in September. The budget takes effect October 1.
Once the county tax roll is approved, the property appraiser’s office will prepare notices of proposed property taxes and non-ad valorem assessments. The forms show each property owner the value of their property, the proposed tax rates, and public hearing information. The notices will be mailed August 21.
A final certification of property value occurs prior to the November 1 property tax bills.
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