Introduction
If you're considering buying a property in Florida, understanding the ins and outs of the state's property taxes is essential. In this guide, we'll walk you through everything you need to know about Florida property taxes, from how they work to the rates in different counties. So grab a cup of coffee, sit back, and let's dive right in!
Florida Property Taxes
Property taxes in Florida are generally lower than the national average. The average effective property tax rate in the state is 0.80%, compared to the U.S. average of 0.99%. On average, homeowners in Florida pay $2,338 annually in property taxes, but keep in mind that this amount can vary significantly between counties.
How Do Florida Property Taxes Work?
The process of calculating property taxes in Florida starts with a property appraisal. Each county in the state has a property appraiser who assesses the value of every lot. The assessed value, which takes into account exemptions like the Save Our Homes assessment limitation, is used to determine the property tax rate.
One of the most common exemptions is the homestead exemption, which protects the value of owner-occupied residences from property taxes. It exempts the first $25,000 of the home's assessed value from all property taxes, with an additional $25,000 exemption for non-school property taxes. The Save Our Homes assessment limitation also caps increases in assessed value at 3% annually.
Florida Property Tax Rates
Property taxes in Florida are calculated using millage rates, which represent one-tenth of a percent. This means that for every $1,000 in home value, homeowners pay $1 in property taxes. The millage rates vary depending on the county, municipality, school board, and special districts.
Here's a look at the property tax rates and median tax payments for some key counties in Florida:
Miami-Dade County
Miami-Dade County, home to stunning beach-front properties, has an effective property tax rate of 1.01%, slightly higher than the national average of 0.99%.
Broward County
Located north of Miami-Dade, Broward County has one of the highest average effective property tax rates in the state at 1.20%. Homeowners in Broward County pay a median property tax bill of $3,375 annually.
Palm Beach County
While Palm Beach County boasts beautiful real estate, it also has higher property taxes. The county's average effective property tax rate is 1.11%, and the median real estate tax payment is $3,344.
Hillsborough County
Hillsborough County, which includes Tampa, has a median annual property tax payment of $2,677 and an average effective tax rate of 1.15%, higher than the state average.
Orange County
In Orange County, homeowners pay a median annual property tax bill of $2,621. The millage rate in Orlando, the county's largest city, varies between approximately 18.5 and more than 19.7 mills.
Pinellas County
Pinellas County, situated between Old Tampa Bay and the Gulf of Mexico, has property taxes below state and national averages. Homeowners in Pinellas County pay a median property tax of $2,107 per year, and the average effective tax rate is 0.96%.
Duval County
The average effective property tax rate in Duval County is 0.97%. This means that the typical homeowner in Duval County pays around 1% of their home value in property taxes annually.
Lee County
Along the Gulf Coast, Lee County has an effective property tax rate of 1.03%, with a median annual tax payment of $2,432.
Polk County
Situated between Tampa and Orlando, Polk County has an average effective property tax rate of 0.97%. The median annual property tax bill in the county is $1,578.
Brevard County
Property taxes in Brevard County are slightly lower than state and national averages. The average effective property tax rate is 0.92%, with a median annual tax bill of $2,013.
Conclusion
Understanding Florida property taxes is crucial when purchasing a home in the Sunshine State. Keep in mind that tax rates and payments can vary significantly between counties, so it's essential to review the specifics for the area you're interested in. If you have further questions about property taxes and their impact on your financial plans, consulting a financial advisor can provide valuable insights.