Data Analysis
The median Bay County house for sale showed a $3,487 property tax bill on November 6, 2026, on a $450,000 asking price, well below the roughly $5,530 the county's average rate implies at that price.
386 of 971 Bay County house listings with a 2025 or 2026 tax line showed a seller's bill under half the full-value figure at the asking price.
On November 6, 2026, the median single-family house for sale in Bay County asked $450,000 and showed a 2025 or 2026 property tax bill of $3,487, or 0.74 percent of price. At the county's average rate of about 12.28 mills, a bill at that price would be about $5,530 before exemptions. Of 971 houses with a usable tax line, 386, or 40 percent, showed a bill below half of the full-value figure. New houses showed a median bill of $748, and 94 percent were under half. Condos were the opposite: a median of $3,996 on $369,950, or 1.08 percent, with only 4 percent under half. All MLS figures are ours, computed from Central Panhandle Association of Realtors MLS records.
The 2026 bills went out November 1, and on November 3 voters approved Amendment 3, which raises the non-school homestead exemption starting in 2027. A buyer's bill is set on a new assessment near the purchase price, so the seller's number on a listing is a weak guide. Recent Panama City coverage includes downtown and St. Andrews homes in ZIP 32401, homes over $750,000 and long-listed condos. Completed-month figures are in our Panama City median price article, and monthly series are on the Panama City market data hub.
Why does a Bay County listing understate a buyer's tax bill?
Under Florida's Save Our Homes rule, a homesteaded property's assessed value can rise no more than 3 percent a year or the inflation rate, whichever is lower. Section 193.155 of the Florida Statutes resets the assessment to just value on the January 1 after a change of ownership. The seller's bill reflects years of capped growth; the buyer's first full bill does not. New houses can show a bill based on a vacant lot because the home was not finished by January 1.
Our Bay County property tax calculator uses about 12.28 mills for 2025-26, the Florida TaxWatch county average, with about 5.16 mills for schools. Our Bay County homestead exemption guide values today's exemption at about $485 a year.
How big is the gap for each type of home?
| Type (active, with a 2025 or 2026 tax line) | Listings | Median ask | Median listed bill | Bill as share of price | Under half |
|---|---|---|---|---|---|
| Single-family houses | 971 | $450,000 | $3,487 | 0.74% | 40% |
| New-construction houses | 181 | $365,000 | $748 | 0.15% | 94% |
| Resale houses | 790 | $469,450 | $3,853 | 0.83% | 27% |
| Condos | 600 | $369,950 | $3,996 | 1.08% | 4% |
| Townhomes and attached | 208 | $334,500 | $3,066 | 0.91% | 24% |
Source: Momentum Research, computed from Central Panhandle Association of Realtors MLS records, Bay County active listings, snapshot November 6, 2026. Listed tax bill is the seller's annual amount as reported on the listing. Deemed reliable but not guaranteed.
Condos showed the smallest gap because many are second homes or rentals that never had a homestead cap. Their bill as a share of price, 1.08 percent, was the highest of any type. Condo buyers also budget association fees, listed by community on our Bay County HOA fees page. Houses built in 2023 or later showed a median bill of $1,450, or 0.22 percent of price, and 65 percent were under half.
Which cities show the biggest gap?
| City (single-family) | Active | In contract | Active with tax line | Median ask | Median listed bill | Bill as share of price | Under half |
|---|---|---|---|---|---|---|---|
| Panama City | 710 | 168 | 461 | $336,333 | $2,700 | 0.70% | 44% |
| Panama City Beach | 510 | 113 | 362 | $664,950 | $4,864 | 0.76% | 33% |
| Lynn Haven | 89 | 26 | 71 | $399,500 | $3,574 | 0.93% | 25% |
| Southport | 43 | 24 | 22 | $368,900 | $2,862 | 0.64% | 50% |
| Mexico Beach | 39 | 2 | 33 | $875,500 | $5,789 | 0.42% | 61% |
| Youngstown | 17 | 9 | 15 | $315,000 | $252 | 0.09% | 80% |
Source: Momentum Research, Central Panhandle Association of Realtors MLS records, snapshot November 6, 2026. City follows the listing address; median ask and bill use listings with a tax line. In contract counts Pending and Active Under Contract. Deemed reliable but not guaranteed.
Mexico Beach stood out among the coastal towns, with a median listed bill of $5,789 on an $875,500 asking price and 61 percent of houses under half the full-value figure. Youngstown's $252 median reflects new houses still taxed as lots.
Does the gap change with price?
| House asking price | Active | In contract | Median listed bill | Under half |
|---|---|---|---|---|
| Under $300,000 | 301 | 97 | $1,779 | 45% |
| $300,000 to $399,999 | 308 | 91 | $2,912 | 39% |
| $400,000 to $599,999 | 387 | 91 | $3,837 | 33% |
| $600,000 to $999,999 | 244 | 52 | $5,495 | 34% |
| $1 million to $1,999,999 | 112 | 12 | $8,781 | 49% |
| $2 million and up | 67 | 2 | $17,622 | 58% |
Source: Momentum Research, Central Panhandle Association of Realtors MLS records, snapshot November 6, 2026. Median bill and under half use listings with a 2025 or 2026 tax line. Deemed reliable but not guaranteed.
The gap was widest at both ends. Under $300,000, much of the low-bill supply is new construction. At $1 million and up, 179 houses were for sale against 14 in contract, and more than half showed a bill under half the full-value figure.
What does Amendment 3 change for a Bay County buyer?
Amendment 3 raises the homestead exemption from non-school taxes from $50,000 to $150,000 on January 1, 2027, and to $250,000 in 2028. School taxes keep the $25,000 exemption. Using our calculator's school and non-school split and holding rates unchanged, a homesteaded buyer at Bay County's $450,000 median house price would owe about $5,040 on 2026 rules, $4,330 on 2027 rules and $3,620 on 2028 rules. Second homes get no homestead exemption, though their yearly non-school assessment cap drops from 10 percent to 5 percent. Buyers who become Florida residents after December 31, 2026 wait five years for the larger exemption. See our Amendment 3 passed guide and Amendment 3 calculator.
What does this mean for buyers and sellers?
For buyers, budget taxes from the price you expect to pay, not from the listing. A new house showing a $748 bill will be reassessed once the home is on the roll, and a resale house's capped value resets after the sale. Our Florida property tax calculator handles the math. For sellers, a buyer's lender escrows taxes on the new assessment, so your own bill understates the next owner's monthly cost. Monthly pace is in our Panama City Market Pulse.
People also ask
What is the property tax rate in Bay County, Florida?
Bay County's 2025-26 county average is about 12.28 mills, about 5.16 of it for schools, based on the Florida TaxWatch figures in our calculator. City and special district levies vary.
Why are property taxes on Panama City listings so low?
Many sellers have owned for years under the Save Our Homes cap, and new houses are often still taxed as lots. On November 6, 2026, 40 percent of Bay County house listings with a tax line showed a bill under half the full-value figure.
How much are taxes on a $450,000 house in Bay County?
At the county average rate, about $5,530 a year before exemptions, or about $5,040 with today's homestead exemption. The median house listing at that price showed $3,487.
Limitations
Only 1,779 of 2,654 active Bay County houses, condos and attached homes carried a 2025 or 2026 tax amount; many new homes have none and are excluded, as are listings under $50,000 and amounts above 6 percent of price. The full-value estimate uses one county average rate, and the school and non-school split behind the Amendment 3 figures comes from our calculator. Non-ad valorem assessments, city levies and special districts are not included. Amendment 3 results are unofficial until certified. This is a snapshot of Central Panhandle Association of Realtors MLS records taken November 6, 2026. Nothing here is tax or legal advice; the county property appraiser and tax collector set actual bills.
Sources
- Momentum Research, computed from Central Panhandle Association of Realtors MLS records, Bay County active and pending listings, snapshot November 6, 2026. Information is deemed reliable but is not guaranteed by the MLS to be accurate.
- Florida Statutes, section 193.155 (homestead assessment limit and change of ownership).
- Florida TaxWatch 2025 county average millage, as used in our Bay County property tax calculator.
- Amendment 3 (CS/HJR 1F) terms and unofficial result, as summarized in our Amendment 3 passed guide.
- Full monthly series and per-feed attribution: Panama City market data
Disclosure: Jon Brooks is a co-founder of Momentum Realty, a Florida real estate brokerage that owns and funds Florida Housing Intelligence. Momentum has a financial interest in Florida real estate transactions, including in markets named here. See our editorial standards.
Market statistics in this article are computed from MLS data licensed by Momentum Realty, and are current as of the date shown. Data may be preliminary and subject to revision by its source. This article is general information, not advice about any specific property, transaction, or financial decision, and is not a representation about any specific property, community, builder, or association.
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