How Florida Property Taxes Work for New Buyers
How Florida Property Taxes Work for New Buyers
Buying a home in Florida? While you won’t pay state income tax, you will pay local property taxes.
Here’s how it works—and what every new buyer needs to understand.
How Are Florida Property Taxes Calculated?
Florida property taxes are based on your home’s assessed value, not necessarily its market value.
Formula: (Assessed Value – Exemptions) x Millage Rate = Annual Taxes
Each county sets its millage rate, which is the tax per $1,000 of taxable value.
What Is the Homestead Exemption?
If you make the Florida home your primary residence, you can apply for the Homestead Exemption, which:
- Reduces the taxable value by up to $50,000
- Caps annual assessment increases at 3% (“Save Our Homes” benefit)
This can save you hundreds to thousands annually.
Apply by March 1 of the year following your purchase.
What About Reassessments?
When a home changes hands, its assessed value is typically reset to the purchase price.
This is why your taxes may be higher than the seller’s.
Budget for a new tax estimate based on your own sale price, not what’s listed on Zillow.
Local Rates Vary
Sarasota, Manatee, and other Gulf Coast counties each have their own:
- School district levies
- Municipal assessments
- Special district fees (like CDDs)
Ask your agent for a full tax estimate before making an offer.
What to Expect at Closing
Lenders usually collect:
- 3–12 months of taxes in escrow
- Prorated taxes from the seller
Ask your title company or closing agent for a clear tax prorations sheet.
Final Thought
Florida property taxes are manageable—but only if you understand how they work.
📞 Call Michael Renick at 941.400.8735 to get a personalized Florida tax estimate and avoid surprises after closing.
How to Purchase New Construction in Florida
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