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Updated 2025 Tax Year

Bay County
Property Tax Guide

Everything you need to know about property taxes in Bay County, FL. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
4.05-5.75 mills (varies by municipality and special districts)
1st Due
Nov 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Bay County, Florida operates under the state's property tax system, which funds essential local services including schools, law enforcement, fire protection, infrastructure maintenance, and county operations. Property taxes are administered by the Bay County Tax Collector and are based on assessed values determined by the Bay County Property Appraiser. The county follows Florida's "Save Our Homes" law, which caps annual assessment increases at 3% for homesteaded properties, providing stability for long-term residents.

Effective tax rates in Bay County vary significantly by location within the county due to special taxing districts and municipal boundaries. For the 2025 tax year, millage rates range from approximately 4.05 mills in Lynn Haven to 5.75 mills in Mexico Beach, with Panama City at 4.7999 mills. These rates translate to roughly $4.05 to $5.75 per $1,000 of assessed value before any applicable tax credits or exemptions. Property owners should note that their specific tax rate depends on their exact location and which special districts serve their property, including school districts, water management districts, and municipal service areas.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
Bay County GeneralVariesCounty operations, services, infrastructure
School DistrictVariesBay County School District operations
Panama City Municipal4.7999City services (Panama City residents only)
Lynn Haven Municipal4.0500City services (Lynn Haven residents only)
Mexico Beach Municipal5.7500City services (Mexico Beach residents only)
NW FL Water Management0.0218Regional water management services
School DiscretionaryVariesAdditional school funding
Special DistrictsVariesFire districts, lighting districts, other local services

Rates shown are for the 2025 levy year. Total millage rates vary by property location and applicable special taxing districts. One mill equals $1 per $1,000 of assessed value. Contact the Bay County Property Appraiser for your specific millage rate based on your property's location and applicable districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Bay County, property taxes are due in two installments:

First Installment
Nov 1
Delinquent after Dec 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Bay County are additional property tax assessments that occur when there are changes in property ownership, value, or use during the tax year. The most common triggers include new construction completion, significant property improvements that increase assessed value, changes in property classification (such as loss of agricultural exemption), or correction of assessment errors. These supplemental assessments are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year remaining.

For example, if a homeowner completes a $100,000 home addition in Bay County that increases their assessed value by $80,000 (after homestead cap considerations), and the improvement is completed in January with a local tax rate of 4.80 mills, the supplemental tax would be approximately $384 ($80,000 × 0.0048) for the full year. The Bay County Tax Collector will issue a separate supplemental tax bill that becomes due according to the same schedule as regular property taxes, with payment due by March 31st of the following year.

Example Calculation

Example 1: $300,000 Property Value (with Homestead Exemption)

  • Market Value: $300,000
  • Homestead Exemption Applied: -$50,000
  • Net Taxable Value: $250,000
  • Tax Rate (Panama City example): 4.7999 mills
  • Annual Tax: $250,000 × 0.0047999 = $1,200
  • Monthly Escrow: $100

Example 2: $600,000 Property Value (with Homestead Exemption)

  • Market Value: $600,000
  • Homestead Exemption Applied: -$50,000
  • Net Taxable Value: $550,000
  • Tax Rate (Panama City example): 4.7999 mills
  • Annual Tax: $550,000 × 0.0047999 = $2,640
  • Monthly Escrow: $220

Example 3: $1,000,000 Non-Homestead Property

  • Market Value: $1,000,000
  • No Homestead Exemption: $0
  • Net Taxable Value: $1,000,000
  • Tax Rate (Panama City example): 4.7999 mills
  • Annual Tax: $1,000,000 × 0.0047999 = $4,800
  • Monthly Escrow: $400

Note: Homestead exemption requires application and approval. Rates shown use Panama City millage as example - actual rates vary by location within Bay County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Bay County require property tax escrow accounts to ensure timely payment of property taxes. Lenders typically collect 1/12th of the estimated annual property tax bill with each monthly mortgage payment, depositing these funds into an escrow account. Since Bay County property taxes are due March 31st annually, lenders usually make the tax payment on behalf of homeowners in late March. Property owners should receive an escrow analysis statement annually showing the account balance and any adjustments needed.

Homeowners are responsible for verifying that their lender has the correct tax information and payment amounts. The Bay County Tax Collector's office recommends that property owners review their tax notices even when taxes are escrowed, as changes in assessed value or millage rates can affect escrow calculations. If your lender fails to pay property taxes on time, you remain ultimately responsible for the taxes and any penalties. You can verify tax payment status and view your tax records online through the Bay County Tax Collector's website or by contacting their office directly.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are Bay County property taxes due? A: Property taxes are due March 31st annually. Tax notices are mailed by November 1st. Taxes become delinquent April 1st, and an installment plan deadline is available until April 30th.

Q: What homestead tax credit is available and how do I apply? A: Bay County offers up to $50,000 homestead exemption that reduces your taxable assessed value. This is NOT automatic - you must apply with the Bay County Property Appraiser by March 1st. The homestead also caps your annual assessment increases at 3% under Florida's Save Our Homes law.

Q: Are there other tax exemptions I can apply for? A: Yes, Bay County offers additional exemptions including disabled person exemptions, senior citizen exemptions, veteran exemptions, and first responder exemptions under Florida Statute §196.102. All require separate applications with specific deadlines and qualification requirements.

Q: How does the Save Our Homes assessment cap work? A: Save Our Homes limits annual assessment increases to 3% or the Consumer Price Index (whichever is lower) for homesteaded properties. This caps the growth of your assessed value, not your market value, providing tax stability for permanent residents.

Q: Can I appeal my property assessment? A: Yes, you can petition the Bay County Value Adjustment Board if you believe your assessment is incorrect. Appeals must typically be filed by July 1st following the assessment notice.

Q: What are the penalties for late property tax payment? A: Delinquent taxes accrue interest and penalties starting April 1st. Additional penalties apply for extended delinquency, and properties with delinquent taxes may eventually face tax certificate sales.

Q: Can I pay my Bay County property taxes online? A: Yes, the Bay County Tax Collector offers online payment options through their official website. Electronic payments, checks, and in-person payments are accepted.

Q: Why does my tax rate differ from my neighbor's? A: Tax rates vary within Bay County based on your property's location and which special taxing districts serve your area, including municipal boundaries, fire districts, lighting districts, and other local service areas.

Q: Is portability of Save Our Homes benefits available in Bay County? A: Yes, Florida law allows you to transfer up to $500,000 of Save Our Homes benefit to a new homestead property within Bay County or anywhere in Florida, subject to specific timing and application requirements.

Q: What happens if my mortgage company doesn't pay my property taxes? A: You remain responsible for property taxes even if your mortgage company fails to pay from escrow. Monitor your tax payment status through the Bay County Tax Collector and contact your lender immediately if payments are missed.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
Millage Rates | Bay County Tax Collectorbaycountyfltax.gov
02
State
Real Estate Property Taxesbaycountyfltax.gov
03
County
Bay County Florida Fiscal Year 2025 Tentative Budgetbaycountyfl.gov
04
County
Bay County Tax Collector | Chuck Perduebaycountyfltax.gov
05
A-Z Indexbaycountyfltax.gov
06
County
Ordinance#: 20-04 - Date: 1/22/2020 - AMENDING BAY COUNTY ...mcclibraryfunctions-stage.azurewebsites.us
07
Frequently Asked Questions - CivicPlus.CMS.FAQbaycountyfl.gov
08
Homestead Exemptionmiamidadepa.gov
09
01-21-09 Agendabaycountymi.gov
10
Untitledmcclibraryfunctions-stage.azurewebsites.us
All sources verified as of 2025 Tax Year

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