Decoding Property Taxes: What Homeowners Should Know in Florida

Owning a home in Florida offers incredible benefits, from sunny weather to no state income tax. However, understanding property taxes is crucial for both first-time buyers and seasoned homeowners. Let’s break down Florida property taxes and what they mean for you.

1. How Are Property Taxes Calculated?

In Florida, property taxes are based on the assessed value of your property. This value is determined annually by your local property appraiser and reflects the market value minus any exemptions.

• Millage Rate: Taxes are calculated using a "millage rate," which is a tax rate applied per $1,000 of assessed value.

• Example: If your home’s assessed value is $300,000 and the millage rate is 15 mills, your property tax would be $4,500 annually.

2. Save Our Homes (SOH) Cap

One unique benefit for Florida homeowners is the Save Our Homes (SOH) Cap, which limits the annual increase in assessed value for homestead properties to 3% or the Consumer Price Index (CPI), whichever is lower.

• Benefit: Helps long-term homeowners save money as market values increase.

• Eligibility: Only applies to properties with a homestead exemption.

3. Property Tax Exemptions

Florida offers several exemptions to reduce the taxable value of your home:

• Homestead Exemption: Reduces the taxable value by up to $50,000 for primary residences.

• Additional Exemptions: For seniors, veterans, and persons with disabilities.

• Portability: You can transfer your SOH savings to a new Florida home, reducing your tax burden further.

4. When Are Property Taxes Due?

Property taxes in Florida are due annually, with bills typically mailed out in November. You can save money by paying early:

• Discounts:

• 4% if paid in November.

• 3% in December.

• 2% in January.

• 1% in February.

5. How Property Taxes Impact Home Buyers

When purchasing a home, it’s essential to account for property taxes in your budget. Taxes on a newly purchased property may increase based on its sale price. Be sure to:

• Review the Property Tax History: Understand the current and potential future tax liabilities.

• Consult Your Real Estate Agent: At Burnham Group, we help buyers estimate property taxes and explore exemptions.

6. Property Taxes for Investment Properties

If you’re buying a second home or investment property, note that non-homestead properties do not qualify for the SOH cap or homestead exemptions.

• Tax Rates: These properties may have higher taxable values and rates.

• Plan Ahead: Incorporate taxes into your investment strategy.

Partner With Burnham Group for Your Real Estate Journey

Understanding property taxes is just one part of owning a home in Florida. At Burnham Group, we guide our clients through every step, ensuring transparency and confidence in their decisions.

If you have questions about property taxes or need expert advice on buying or selling your home, contact Yvonne Burnham (239.825.3505) or Eddie Burnham (239.734.0776) today