How Florida Property Taxes Work for New Homeowners

If you’re buying your first home in Florida, welcome! Beyond sunshine and palm trees, there’s something else to get familiar with: Florida property taxes.

Let’s break down what they are, how they work, and how to manage them.

Florida Has No State Income Tax… But Property Taxes Still Apply

Florida is one of only a few states without a state income tax. That’s great for take-home pay—but the state makes up for it in part through local property taxes.

These are collected by your county and city to pay for services like:

• Public schools
• Roads and infrastructure
• Police and fire departments
• Parks and libraries

How Are Property Taxes Calculated?

Florida property taxes are based on the assessed value of your home multiplied by the local millage rate.

Assessed Value = What the county thinks your property is worth (usually lower than market value)
Millage Rate = Tax rate set by your local authorities (1 mill = $1 per $1,000 of assessed value)

Example:
Assessed Value: $300,000
Millage Rate: 18 mills
Tax Bill: 300 x $18 = $5,400 annually

When Do You Pay Florida Property Taxes?

• Tax bills are issued each November
• They cover the calendar year, but are paid in arrears
• You get a discount for early payment:
  • 4% off in November
  • 3% in December
  • 2% in January
  • 1% in February
  • Full amount due by March 31

Can You Lower Your Property Tax Bill?

Yes—as a new homeowner, you may qualify for:

• Homestead Exemption: Reduces your assessed value up to $50,000 if the home is your primary residence
• Senior Exemptions
• Disability or Veteran Exemptions
• Portability: Transfer part of your tax savings if you moved from another Florida property

Be sure to apply for exemptions by March 1 of the year following your purchase.

Watch Out for Tax Surprises

When you buy a home, the previous owner’s exemptions may no longer apply. That means your first full tax bill could be higher than expected.

This is called the “tax reset” or “recapture effect.”

Pro tip: Ask your agent or title company to request an estimate of post-sale taxes during closing.

Final Advice

Florida property taxes are manageable—if you plan ahead.

📞 Call Michael Renick at 941.400.8735 to estimate your taxes and learn how to reduce them as a new homeowner in Florida.

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