Florida Property Tax Calculator

Florida property tax is a local tax levied on real estate to fund public services like schools, roads, fire departments, and law enforcement. CALCULATION FORMULA: Property Tax = (Assessed Value - Exemptions) ÷ 1,000 × Millage Rate COMPONENTS EXPLAINED: • Assessed Value: Usually the market value of your property • Exemptions: Homestead ($50,000) plus any additional exemptions • Millage Rate: Tax rate per $1,000 of taxable value EXAMPLE: • Property Value: $400,000 • Homestead Exemption: $50,000 • Taxable Value: $350,000 • Millage Rate: 18.5 mills • Annual Tax: ($350,000 ÷ 1,000) × 18.5 = $6,475 Florida has NO state income tax, so property taxes are a primary revenue source for local governments.

The Florida Homestead Exemption is a constitutional provision that reduces property taxes on your primary residence. EXEMPTION AMOUNTS: • First $25,000: Exempt from ALL property taxes • Next $25,000: No exemption (taxed normally) • Next $25,000: Exempt from NON-SCHOOL taxes only • Total effective exemption: Up to $50,000 ELIGIBILITY REQUIREMENTS: 1. Property must be your PRIMARY residence 2. You must own the property as of January 1st 3. You must be a Florida resident 4. Must be a U.S. citizen or permanent resident HOW TO APPLY: • Apply at your county Property Appraiser's office • Deadline: March 1st each year • Submit proof of residency (FL driver's license, voter registration) • Once approved, renews automatically each year SAVINGS EXAMPLE (20 mill rate): • Without Homestead: $400K × 20/1000 = $8,000 • With Homestead: $350K × 20/1000 = $7,000 • Annual Savings: $1,000

A millage rate (mill rate) is the property tax rate expressed as mills per $1,000 of assessed value. One mill equals $1 in tax per $1,000 of property value. MILLAGE RATE BY MAJOR FLORIDA COUNTIES: • Miami-Dade: 18.5 mills (~1.85% effective rate) • Broward: 19.2 mills (~1.92% effective rate) • Palm Beach: 17.8 mills (~1.78% effective rate) • Orange (Orlando): 20.1 mills (~2.01% effective rate) • Hillsborough (Tampa): 19.5 mills (~1.95% effective rate) • Duval (Jacksonville): 18.9 mills (~1.89% effective rate) • Pinellas: 18.2 mills (~1.82% effective rate) • Lee: 16.5 mills (~1.65% effective rate) WHAT MILLAGE PAYS FOR: • County services: 3-5 mills • School district: 6-8 mills • City/municipality: 2-4 mills • Special districts: 1-3 mills • Water management: 0.5-1 mill IMPORTANT: Rates change annually when local governments set budgets. Always verify current rates with your county.

Florida offers several additional property tax exemptions beyond the standard homestead: SENIOR CITIZEN EXEMPTIONS: • Age 65+ with income ≤ $35,000: Additional $50,000 exemption • Long-term senior (25+ years in FL): Potentially higher exemption • Must file annually with income documentation DISABILITY EXEMPTIONS: • Total and Permanent Disability: Full exemption possible • Combat-related disabled veterans: Varies by disability % • Surviving spouses of disabled veterans may qualify VETERAN EXEMPTIONS: • $5,000 exemption for all veterans with honorable discharge • Disabled veterans: Additional based on disability rating • 100% disabled veterans: Full exemption • Surviving spouse: May inherit exemption WIDOW/WIDOWER EXEMPTION: • $500 additional exemption • Must not remarry to maintain eligibility OTHER EXEMPTIONS: • Blind persons: $500 exemption • First responders (killed in line of duty): Full exemption for spouse • Deployed military: Tax deferral available APPLY AT: Your county Property Appraiser's office with supporting documentation.

Florida property taxes are due annually with a discount schedule for early payment: PAYMENT SCHEDULE & DISCOUNTS: • November: 4% discount if paid • December: 3% discount if paid • January: 2% discount if paid • February: 1% discount if paid • March: Full amount due (no discount) • April 1st: Taxes become DELINQUENT DELINQUENT TAXES: • 3% interest begins immediately • Additional 1.5% per month • Property can be sold at tax certificate sale • Redemption period available PAYMENT OPTIONS: • Online payment (credit card or bank transfer) • Mail (postmark must be within discount period) • In-person at Tax Collector's office • Some counties offer installment plans INSTALLMENT PAYMENT PLAN: • Apply by April 30th for following year • Quarterly payments (June, September, December, March) • Approximately 6% effective discount • Avoid lump sum March payment ESCROW ACCOUNTS: Most mortgage lenders collect property tax monthly through escrow and pay on your behalf to capture the discount.

Save Our Homes (SOH) is a Florida constitutional provision that limits property tax assessment increases on homesteaded properties. HOW SOH WORKS: • Annual assessed value increase capped at 3% or CPI, whichever is LOWER • Only applies to homesteaded properties • Does not cap the tax rate (millage), only the assessment SOH BENEFIT EXAMPLE: • Year 1 Assessed Value: $300,000 • Market value increases 10% to $330,000 • SOH Cap: 3% increase maximum • Year 2 Assessed Value: $309,000 (not $330,000) • Tax savings accumulates over time PORTABILITY: • You can transfer up to $500,000 of SOH savings to a new Florida home • Must apply within 3 years of selling previous home • "Upsizing": Full savings portable • "Downsizing": Proportional savings portable PORTABILITY CALCULATION: • Previous home market: $400K, assessed: $300K (SOH savings: $100K) • New home market: $500K • Portable savings: $100K × ($500K ÷ $400K) = $100K (capped) • New assessed: $500K - $100K = $400K LOSS OF SOH: • Selling property (but portable) • Losing homestead status • Death (passes to surviving spouse if on title)

Florida property taxes are moderate compared to other states, but the lack of state income tax makes the overall tax burden lower. FLORIDA VS OTHER STATES (Effective Property Tax Rates): • New Jersey: 2.42% (Highest in US) • Illinois: 2.16% • Texas: 1.80% • Florida: 0.89% (Below national average) • California: 0.76% • Hawaii: 0.28% (Lowest in US) FLORIDA'S TAX ADVANTAGES: • No state income tax • No estate tax • Homestead exemption ($50,000) • Save Our Homes 3% cap • Portability of SOH savings • Various additional exemptions TOTAL TAX BURDEN COMPARISON: When considering all taxes (property, income, sales): • Florida ranks 47th in total state/local tax burden • Approximately 8.9% of income • National average: 11.2% CONSIDERATIONS FOR NEW RESIDENTS: • Property taxes may be higher than some states • But NO state income tax saves 3-13% of income • Net savings depends on your income level • Higher earners benefit most from no income tax

If you believe your property assessment is too high, you have the right to appeal. GROUNDS FOR APPEAL: • Market value is overestimated • Property has defects not reflected in value • Comparable properties assessed lower • Incorrect property information (sq ft, bedrooms, etc.) APPEAL PROCESS: 1. INFORMAL REVIEW (Free) • Contact Property Appraiser's office • Provide comparable sales evidence • Often resolves issues quickly 2. VALUE ADJUSTMENT BOARD (VAB) • File petition by deadline (usually 25 days after TRIM notice) • Filing fee: $15-50 • Present evidence to hearing officer • Decision typically binding 3. CIRCUIT COURT (Expensive) • For large disputes only • 60 days from VAB decision • Attorney recommended EVIDENCE TO GATHER: • Recent comparable sales • Independent appraisal • Photos of property defects • Repair estimates • Previous assessment records KEY DATES: • TRIM Notice: August (shows proposed assessment) • Appeal Deadline: Usually 25 days after TRIM • VAB Hearings: September-November • Final Tax Bill: November

Rental and investment properties have different tax treatment than primary residences in Florida. KEY DIFFERENCES: • NO Homestead Exemption available • NO Save Our Homes cap protection • Assessment rises to full market value each year • Higher effective tax burden TAX CALCULATION FOR INVESTMENT PROPERTIES: • Full market value assessed (no $50K exemption) • Same millage rates as residential • Higher taxes than comparable homesteaded property EXAMPLE COMPARISON ($400,000 property, 18.5 mills): Primary Residence (Homesteaded): • Taxable: $350,000 • Annual Tax: $6,475 Investment Property: • Taxable: $400,000 • Annual Tax: $7,400 • Difference: $925/year higher DEDUCTIONS FOR LANDLORDS: • Property taxes are tax-deductible expense • Reduces federal income tax liability • Part of Schedule E rental income calculation SHORT-TERM RENTAL CONSIDERATIONS: • Tourist development taxes may apply (6-12%) • Sales tax on rentals under 6 months • Additional local regulations • Higher insurance requirements 1031 EXCHANGE: • Defer capital gains when selling investment property • Must identify replacement property within 45 days • Close on replacement within 180 days

Property tax responsibilities change during real estate transactions in Florida. AT CLOSING: • Property taxes are PRORATED between buyer and seller • Based on calendar year (Jan 1 - Dec 31) • Seller credits buyer for their portion of year PRORATION EXAMPLE (Closing June 15): • Annual Tax: $6,000 • Seller's portion: Jan 1 - Jun 14 = 165 days • Buyer's portion: Jun 15 - Dec 31 = 200 days • Seller credits buyer: $6,000 × (165/365) = $2,712 HOMESTEAD TRANSFER ISSUES: • Homestead exemption does NOT transfer automatically • Buyer must apply separately • Deadline: March 1st of following year • Taxes will be higher without exemption SOH PORTABILITY FOR BUYERS: • If moving from another FL homesteaded property • Can transfer up to $500K in SOH benefits • Must apply within 3 years of selling previous home • Same application as homestead FOR SELLERS: • SOH cap removed upon sale • New assessment at current market value • Portability allows transfer to new FL home NEW CONSTRUCTION: • Assessed at market value when completed • No SOH history to start • Homestead exemption available if primary residence IMPORTANT: Work with your closing agent/attorney to ensure proper tax proration and exemption applications.

Property taxes are a significant component of monthly housing costs that many buyers overlook. IMPACT ON MONTHLY PAYMENT: • Property tax typically adds $300-800/month to housing cost • Must be included in debt-to-income calculations • Lenders require escrow for property taxes AFFORDABILITY EXAMPLE ($400,000 home, 18.5 mills): Without Homestead: • Annual Tax: $7,400 • Monthly Addition: $617 With Homestead: • Annual Tax: $6,475 • Monthly Addition: $540 • Monthly Savings: $77 FULL HOUSING COST CALCULATION: • Principal & Interest: $2,148 (at 7%, 30-year) • Property Tax: $540/month • Homeowners Insurance: $200/month • HOA (if applicable): $300/month • TOTAL: $3,188/month COUNTY COMPARISON ($400K home with homestead): • Miami-Dade (18.5 mills): $540/month • Broward (19.2 mills): $560/month • Palm Beach (17.8 mills): $520/month • Orange (20.1 mills): $586/month • Lee (16.5 mills): $482/month BUYER TIPS: • Factor property taxes into budget BEFORE house hunting • Compare millage rates between counties • Ask about any special assessments • Check if home qualifies for exemptions • Request tax history from seller

Special assessments are additional charges on property for specific local improvements or services. COMMON SPECIAL ASSESSMENTS: • Street improvements/paving • Sidewalk installation • Water/sewer connections • Stormwater drainage • Street lighting • Fire/rescue services • Solid waste collection HOW THEY DIFFER FROM PROPERTY TAX: • Tied to specific improvement, not general revenue • May be one-time or annual • Not based on property value • Often charged per lot or front footage • May be paid off in lump sum SPECIAL ASSESSMENT EXAMPLES: • Road paving: $50-150/year for 10-20 years • Sewer connection: $3,000-10,000 one-time • Stormwater: $100-300/year • Fire rescue: $150-400/year COMMUNITY DEVELOPMENT DISTRICTS (CDD): • Common in newer Florida developments • Funds infrastructure built by developer • Annual fee: $1,000-4,000+ • Runs 20-30 years typically • Paid through tax bill BUYER DUE DILIGENCE: • Request disclosure of all assessments • Check for pending improvements • Review CDD payment schedule • Factor into affordability calculation • Ask if assessments are paid off HOW TO FIND ASSESSMENTS: • County Property Appraiser website • TRIM notice (August) • Seller disclosure • HOA documents