Polycrystalline, fluorine doped tin oxide (SnO2:F) thin films were prepared by the low cost spray pyrolysis (SP) technique on glass substrates at 400 °C. To study the influence of annealing on the optical properties, the films were annealed in nitrogen atmosphere at 400 °C for 30 min. Scanning electron microscopy (SEM), energy dispersion X-ray spectroscopy (EDX), and transmittance spectroscopy were used to characterize the films. It is found that annealing reduces the transmittance and direct optical bandgap energy, and increases the reflectance, extinction coefficient, refractive index, real and imaginary parts of the dielectric constant, dispersion parameters, loss factor, and optical conductivity. These results are important for the use of tin oxide in solar cells and optoelectronic devices.