What to Know About Florida Real Estate Taxes When Buying

Buying a home in Florida? You’ll want to understand how real estate taxes work.

Here’s what buyers need to know to avoid surprises.

How Are Property Taxes Calculated in Florida?

Taxes are based on:

• Assessed value: Set by the county property appraiser
• Millage rate: Varies by county, city, school district

Formula: (Assessed Value – Exemptions) x Millage Rate = Taxes Owed

When Are They Paid?

• Paid in arrears (you pay this year’s taxes in November of this year)
• Usually prorated at closing between buyer and seller
• If escrowed, paid by your lender from your escrow account

What Happens After You Buy?

After closing:

• County reassesses the property based on your purchase price
• New tax bill may be higher than seller’s previous bill

That’s called the “Save Our Homes cap reset”

What About Homestead Exemption?

Florida residents may apply for a Homestead Exemption if the home is their primary residence:

• Up to $50,000 exemption
• Caps annual value increases at 3%
• Must apply by March 1st of the year after purchase

How It Affects Your Mortgage Payment

If you escrow:

• Taxes included in your monthly payment
• Expect an increase after reassessment (in year 2)
• Your lender will conduct an annual escrow analysis

Tips to Avoid Surprises

• Don’t base your estimate on the seller’s old bill
• Use the county tax estimator tool based on your purchase price
• Apply early for Homestead Exemption if eligible

Final Thought

Real estate taxes are a key part of your Florida home budget.

📞 Call Michael Renick at 941.400.8735 to estimate your Florida taxes and plan ahead with confidence.

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