As a potential property owner in Florida, there are many things you need to become educated on. How do you obtain financing? What is the benefit of a home inspection? How much are closing costs? How can I get the best price on a home? What is the school district rating?
Waypoint Real Estate Group can help. Today we would like to help clear the fog a bit by de-mystifying the topic of how Florida property tax is calculated.
The Florida property tax system differs from many other states. The formula itself is fairly simple:
(Assessed Value) X (Millage Rate) = Your Yearly Tax Bill
Millage Rate is simply another term for Tax Rate. Millage rates can be obtained through the county property appraiser’s website where the property is located.
The simple definition of Assessed Value is the value of the property as determined by the county the property resides in. The guidelines in determining the values take into account the size, location, upgrades and recent comparable sales. Values of homes can rise or fall from year to year depending on various factors such as the changes made by a homeowner (i.e. adding a swimming pool), or if a sink hole occurred in the immediate area. An automated system is used to adjust value changes and the valuation work takes place in September, October and November. The re-assessment value changes occur on January 1st based on the valuation work done at the end of the previous year.
Florida homeowners who use their property as a primary residence (meaning that you live in the property for at least six months out of the year) can take advantage of the Florida Property Tax Homestead Exemption. Homestead can reduce your taxable value on your home as much as $50,000, saving you approximately $750, annually. More importantly, your assessed value, which is used to calculate your property taxes, cannot increase more than 3% annually after you are granted the exemption.
To find out more about Florida Property Tax you can visit the local county property appraiser’s office or go to their website. There you will be able to view up to date tax bills on any property, see the millage rates, and in some cases use a tool that allows you to estimate taxes.
For Orange County Florida property tax information, visit www.ocpafl.org.
For Osceola County Florida property tax information, visit www.property-appraiser.org
Waypoint Real Estate Group serves Central Florida, specializing in Celebration, FL.