How Are Florida Real Estate Taxes Calculated?

Discover tax information for real estate in the Sunshine State.

Each state has its own way of calculating real estate taxes. Residents living in Florida or those considering becoming a real estate owner in Florida should understand how the state goes about calculating and levying taxes on real estate property.

Tax Authority

According to the Florida Constitution, each county in the state has the right to assess and collect property taxes. When the county collects property taxes, it is collecting the taxes on behalf of the state of Florida. Even though the tax is paid to the state, the state allocates the taxes to the county and city governments and the school districts to cover costs of the area.

Calculation Formula

Florida real estate property tax falls to the responsibility of the county where the property is located, so each year the county tax assessor in Florida goes out in the field and evaluates each property located in the county. From this assessment, the county assessor determines the market value of each property. From the market value, the county assessor then deducts any exemptions or other limitations (such as homestead exemption). The net of the calculation is the taxable value, which is then multiplied by the millage rate set by the county each year. For example, if the market value of a home is $200,000 and a $25,000 homestead exemption applies to the home, then the taxable value of the home is $175,000. If the millage rate for the county is five mills, then the property taxes due are $875 ($200,000 -- $25,000 = $175,000 x .005 = $875).

Public Hearings

Each county in Florida sets the millage rate for real estate taxes. While each county is responsible for setting the rate, the public also plays a role in accepting the millage rate. Before a millage rate can be adopted in Florida counties, a public hearing is held. At the public hearing, the millage rate is included in the presentation of the proposed budget for the county. Attendees of the meeting can ask the county representatives questions and make comments on the budget and on the millage rate before it is adopted for use by the taxing authority.

Homestead Exemptions

Florida is one of the states in the country that does allow for a homestead exemption. A homestead exemption is a reduction of the market value of a home for tax calculation purposes. In Florida, homestead exemptions are only offered to owners of primary residences. The cap for homestead exemptions in Florida is $50,000.

Time Frame

Florida county assessors conduct assessments on an annual basis. Homestead exemptions remain on Florida properties unless ownership status changes. Homestead exemption also places a cap on how much taxes on a homesteaded property can increase each year, which is established by Amendment 10 to the Florida Constitution.

References

• Department of Revenue: Florida Property Tax