Taxes & Insurance in Callaway
Callaway sits in Bay County, so it shares the same countywide millage stack, homestead exemption rules, and sales-tax disagreement as the rest of this cluster -- with real hurricane-driven insurance costs on top of an already-affordable purchase price.
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Learn moreThe Bay County millage stack
Bay County's total 2025 millage runs about 12.28 mills, of which roughly 5.16 mills fund schools, with the remainder covering county, municipal, and special-district services. For 2026, Bay County commissioners held the county's own operating millage steady at 5.4362 mills, kept the fire tax rate at 1.38 mills, and kept mosquito-control millage at 0.2000 mills. Bay County's overall effective property tax rate for 2025 is cited at about 0.85%. These layers stack on a specific parcel along with any city-specific Callaway millage, so no single number represents an actual bill -- check the Bay County Property Appraiser's site for a given address.
Homestead exemption and the Save Our Homes cap
Florida's 2026 homestead exemption for a primary residence totals $51,411, split between a fixed $25,000 slice applying to all levies (including school taxes) and a second, inflation-adjusted slice ($26,411 for 2026) applying to non-school levies only. Once homesteaded, the Save Our Homes cap limits annual assessed-value increases to the lesser of 3% or the change in CPI -- 2.7% for 2026. Given Callaway's low entry price, the fixed $25,000 homestead slice alone represents a genuinely larger proportional reduction in assessed value here than in a higher-priced Bay County market.
Sales tax: sources disagree on the exact combined rate
The Florida Department of Revenue's own discretionary sales surtax table lists Bay County's combined 2026 rate at 7% (the statewide 6% base plus a 1% county surtax); a separate aggregator (SalesTaxHandbook) cites a higher 7.5%. That's a real, disclosed disagreement between a state-agency source and a private aggregator -- confirm the current rate directly with the Florida Department of Revenue.
Insurance carries real, hurricane-driven costs -- get a Callaway-specific quote
This session did not independently source a Callaway-specific homeowners insurance average -- a genuine gap. Callaway sits close to Tyndall Air Force Base and shares the same Bay County hurricane exposure as its neighbors, so budget for real, ongoing homeowners insurance costs and confirm a specific address's FEMA flood zone through Bay County's FEMA Flood Zones and Maps portal (baycountyfl.gov) rather than assume a low-cost premium simply because the purchase price is low.
Key takeaways
- Bay County's 2025 total millage runs about 12.28 mills (roughly 5.16 for schools); the county held its own 2026 operating millage steady at 5.4362 mills, with fire tax at 1.38 and mosquito control at 0.2000.
- The 2026 homestead exemption totals $51,411 with a 2.7% Save Our Homes cap -- a proportionally larger benefit here given Callaway's lower purchase prices.
- Sources disagree on the combined sales tax rate: 7% per the Florida Department of Revenue's own surtax table versus 7.5% per a private aggregator.
- No Callaway-specific homeowners insurance average was independently sourced this session -- confirm a specific address's FEMA flood zone via Bay County's FEMA portal and don't assume a low premium just because the home price is low.
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