Sebastian set its city tax rate at the rollback rate. Here is what that means for your November bill.

Your property tax bill arrives in November, and one line on it belongs to the City of Sebastian. At a public hearing on September 14, the Sebastian City Council voted unanimously to set a tentative city tax rate of 3.3318 mills for the budget year that began October 1, 2026. Last year's final rate was 3.4455 mills.

The new number is the rollback rate. The council also adopted a tentative budget covering October 1, 2026 through September 30, 2027, across the general fund, special revenue, capital improvements, the golf course, the airport and the building department.

What a mill is

Property tax rates in Florida are set in mills. One mill is one dollar of tax for every $1,000 of taxable value. Taxable value is not the price your house would sell for. It is the assessed value the property appraiser sets, minus any exemptions you qualify for, such as the homestead exemption.

That is why two neighbors with similar houses can pay very different amounts. A homeowner who has had a homestead exemption for years usually has a much lower taxable value than a new buyer, because the homestead assessment cap limits how fast the assessed value can climb.

What the rollback rate means

The rollback rate is the rate state law calculates to bring in about the same property tax money as the year before, not counting new construction. When property values rise, the rollback rate is lower than last year's rate. If a city keeps last year's rate while values go up, Florida law treats that as a tax increase and the city must advertise it that way.

Choosing the rollback rate does not mean every bill goes down. If your taxable value went up this year, your city portion can still rise a little. It means the city as a whole is not collecting more property tax from existing homes and businesses than it did last year.

How the city balanced it

City staff told the council that holding the rate at rollback leaves a gap in the 2026–27 numbers, and that the budget uses about $262,000 of city reserves to close it. Reserves are the city's savings, kept for emergencies such as hurricanes. Whether to spend them to hold the rate down was one of the main budget debates this year, and it came up again at the October city council candidate forum.

The city's choice also sits next to Amendment 3 on the November 3 ballot, which would raise the homestead exemption on non-school property taxes and lower the yearly cap on non-homestead assessments. A city budget workshop estimated that, if it passes, Sebastian's budget would take a first-year hit of about $2.8 million.

What to do with your bill

1. Find the city line. Your bill lists each taxing authority separately: the county, the school board, the City of Sebastian and special districts. The city sets only its own line.
2. Compare it with your August TRIM notice. The Truth in Millage notice mailed in August showed your values and the proposed rates. If your taxable value looks wrong, the Indian River County Property Appraiser is the office to call.
3. Pay early if you can. Under Florida law, bills paid in November get a 4% discount, December 3%, January 2% and February 1%. The full amount is due by March 31.
4. Check your exemptions. If you own and live in your Sebastian home and do not have a homestead exemption, the filing deadline for next year is March 1.