Florida Property Taxes Explained in Simple Terms

Florida property taxes are payable by all property owners in the state of Florida—including businesses, individuals, landlords, and people who inherit property as part of an estate. If you are a property owner in Florida, it’s important to know how much property tax you owe so that you can take advantage of any exemptions and discounts and complete your property tax payment on time.

How Real Property Taxes Are Calculated

Each County Establishes Tax Rates

Each year, every county board in Florida sets taxation rates for all properties in that county. These rates are “millage rates” which equate to $1 for each $1,000 or one-tenth of a percent (0.001) of the taxable value of your home.

Property Appraisal

After the millage rates are set, the assigned property appraiser establishes property values for each lot in the county through a systemic analysis of market data. After the appraisal process is complete, the county property appraiser's assigned values are modified with exemptions to find the assessed value.

Truth in Millage Notice

The appraised value and assessed value of each property are communicated to homeowners on a Truth in Millage (TRIM) notice. If you think the appraised value is too high—i.e. higher than what you would receive if you sold your home—you have 25 days to file an appeal to the county adjustment board. Otherwise, the property values and exemptions are confirmed and added to the tax collector's tax roll.

Collecting Taxes

The tax collector is the person responsible for mailing each tax bill to property owners, collecting taxes, and distributing revenue to the relevant institutions. The tax collector also collects tangible personal property taxes, issues tax certificates, and returns unused funds to the local taxing authorities.

The timeline for collecting taxes is:

• November 1 - tax bills mailed to homeowners

• March 31 - tax payments due

• April 1 - any unpaid property taxes are considered delinquent and subject to penalties

The tax bill each homeowner receives includes the real property tax, tangible taxes, and Non-Ad Valorem assessments, which are unit-based levies for sewage, streetlights, and road improvements and are not affected by home value. Tangible personal property taxes are assessed against furniture, fixtures, and equipment in a rental property or business as well as structural additions to mobile homes.

Florida Property Tax Exemptions

Some reductions in property taxes are available in the form of taxpayer exemptions. A Florida tax professional from Golden Apple (a leading Jacksonville accounting agency) can explain these exemptions to you in detail along with the associated savings. If you are eligible for an exemption or discount, tax planning services can help you take full advantage of the exemption.

Homestead Exemption

The homestead exemption is available to owner-occupiers in the state of Florida, protecting them against sudden increases in their assessed home value, from creditors, and from issues arising from the death of a spouse.

The homestead exemption reduces your property's taxable value by $25,000 for all property taxes and by a further $25,000 for property taxes besides school taxes. It also makes you eligible for the Save Our Homes assessment limitation, which places a cap of 3% or the rate of inflation (whichever is less) on the annual increase in the assessed value of your home.

Active-Duty Military and Veteran Exemptions

Florida residents who are active-duty military members or military veterans may be eligible for several property tax exemptions and discounts. Disability-related discounts are related to the level of disability.

• Active-duty military personnel can rent out their homestead property while they are serving the country without losing their homestead exemptions. (section 196.061, Florida Statutes)

• Military personnel who are deployed in certain designated operations may be exempt from property taxes for the portion of the tax year that they are deployed. Use Form DR-501M. (section 196.173, Florida Statutes)

• Certain disabled veterans (and their surviving spouses) may be eligible for a $5,000 reduction in the assessed value of their homestead or investment property. (Form DR-501, section 196.24, Florida Statutes)

• Certain disabled veterans (and their surviving spouses) may be eligible for a total exemption from ad-valorem property taxes. (sections 196.081 and 196.091, Florida Statutes)

• Veterans aged 65 and above who are disabled (either partially or permanently) may also be eligible for discounts on property taxes. These discounts carry over to the veteran's surviving spouse under certain conditions. (Form DR-501, section 196.082, Florida Statutes)

Senior Exemptions

Seniors who meet certain requirements may be eligible to take a further $50,000 off their property's taxable value in addition to the homestead exemption. This benefit applies to people who:

• Live in the property they own

• Are 65 years of age or older

• Do not have a household income over the limit (Form DR-501 and Form DR-501SC, section 196.075(2), Florida Statutes)

Some governing authorities may allow a homestead exemption equal to the assessed value of the property for people aged 65 and above who:

• Own property worth less than $250,000

• Have lived at that address for at least 25 years

• Have a household income below the income limitation (same forms as above)

Additional Exemptions

Several additional exemptions are available for owner-occupiers with a permanent disability or another specified criterion.

• A quadriplegic person's homestead is exempt from all ad valorem taxation. (section 196.101(1), Florida Statutes)

• The homestead of a paraplegic, hemiplegic, legally blind, or wheelchair-bound owner-occupier is exempt from property taxes as long as the total gross income of all residents in the home is below the limit. Use Form DR-416 for total and permanent disability and Form DR-416B for the legally blind. (section 196.101, Florida Statutes)

• Widows, widowers, blind people, and totally and permanently disabled people are exempt from paying taxes on property to the value of $500. Use Form DR-501. (section 196.202, Florida Statutes)

• The surviving spouse of a Florida first responder who died in the line of duty is exempt from paying property taxes. Residency and service requirements apply. (section 196.081(6), Florida Statutes)

• The assessed value of a homestead property may be reduced if the appraisal value was raised due to the owners building living quarters for their natural or adoptive parents or grandparents. Use Form DR-501PGP. (section 193.703(1), Florida Statutes)

• The assessed value of a property cannot be increased due to the installation of a renewable energy source device. This applies to devices installed on or after Jan 1, 2013. (section 193.624, Florida Statutes)

How Florida Property Tax Is Used

When you're paying several hundred (or thousand) dollars in property taxes, it helps to know where these funds go. In Florida, property taxes are mostly used for public services that create safer and more pleasant neighborhoods, including:

• Local levies

• Land improvements

• Garbage pickup

• Recreational services

• Protective services

• First responders

• Law enforcement

• Schools

The rest of the funds are used for government services, government infrastructure, and municipal employees' pay.

Payment Options

Homeowners and businesses that owe property taxes can pay in one of three ways:

• Online

• In-person

• By mail

If you have a mortgage, it's possible that your property taxes have been added to the mortgage payments automatically and there is no further action required.

Assistance with Paying Property Taxes in Florida

Homeowners who have been adversely impacted by the COVID-19 pandemic may be eligible for assistance from the Homeowner Assistance Fund (HAF). This program aims to prevent delinquencies, loss of utilities, and homelessness by providing relief with:

• Mortgage payments

• Home insurance

• Utilities

• Property taxes

• Fees

• Internet

Know Your Rights and Responsibilities When it Comes to Florida Property Taxes

Property taxes in Florida depend on several factors, including the value of your home, which (if any) kinds of additions you have made, and whether you qualify for certain exemptions and discounts.

If you think you may be eligible for an exemption or discount on your business real estate or homestead taxes, it's best to consult with a Florida accountant. Good tax planning today could save you money tomorrow and put you in the best possible position for a healthy financial future.