Important Property Tax Information for First-Time Homebuyers in Florida

Important Property Tax Information for First-Time Homebuyers in Florida

When purchasing a home, you are concerned with out-of-pocket expenses, loan programs, debt to income ratios, credit scoring, and the list goes on and on. However, you can’t forget about the practical parts of homeownership which starts after loan closing. Understanding property tax information for First-Time Homebuyers in Florida is a big part of those next steps.

In today’s short video, I will explain how property taxes in Florida are calculated, walk through important deadlines, and discuss other important items such as property tax exemptions.

But before we get started, if you are looking to take advantage of the No Down Payment USDA Loan, remember to download our USDA Blueprint for Success with the link below. This free guide is designed to help walk you through the USDA qualifying process step-by-step and is a great educational resource for the homebuying community.

Navigating Property Taxes for First-Time Homebuyers in Florida

If you’re a first-time homebuyer in Florida, congratulations on this exciting milestone! Alongside choosing your dream home and navigating the loan process, understanding property taxes is essential to budget accurately and avoid surprises down the line.

1. Understanding Florida’s Property Tax Structure

In Florida, real property taxes are based on the value of the property as determined by your county’s Property Appraiser. Every year, your local taxing authorities, such as county governments, school boards, special districts, and municipalities within a county set millage rates (tax rates), which determine how much you’ll owe.

Here is a further explanation on millages rates per the Florida Department of Revenue:

“Millage is a tax rate defined as the dollars assessed for each $1,000 of value; one mill is one dollar per $1,000 of assessed value. Mathematically the equation is: Taxable value ÷ 1,000 × millage rate = Property Tax Owed.”

2. Florida Property Tax Due Dates

Property taxes in Florida become payable on November 1 each year and can be paid through March 31 of the following year without penalty. These taxes fund essential community services, including schools, emergency response, and public infrastructure, making them a key part of supporting your local area as a new homeowner.

Pursuant to Florida Statute 197.343, Real Estate Property Taxes become delinquent on April 1.

3. Key Property Tax Exemptions for Florida Homeowners

Florida offers several property tax exemptions that can significantly reduce your tax bill such as:

• Homestead Exemption: If your new home is your primary residence, homeowners can save up to $50,000 on their taxable value with the Florida Homestead Property Tax Exemption as follows:
• The first $25,000 of this exemption applies to all taxing authorities.
• The second $25,000 excludes School Board taxes and applies to properties with assessed values greater than $50,000.

As a result of these savings, it is crucial to apply for this as soon as possible after purchasing your home.

• Homestead Exemption Portability: Florida allows homeowners to transfer, or “port,” some or all of their homestead exemption savings from a previous property to a new one within the state. This portability can be applied when buying a new home, helping to maintain savings and keep property taxes more affordable.
• Additional Exemptions: Other exemptions, such as those for veterans, seniors, and persons with disabilities. Remember to check with your local property appraiser’s office to see what you qualify for.

4. Save Our Homes (SOH) Cap

Florida’s “Save Our Homes” cap limits how much the assessed value of a homesteaded property can increase each year, providing long-term savings. The SOH cap limits the annual increase in the assessed value of homesteaded properties to 3% or the change in the National Consumer Price Index (CPI), whichever is less. This is a huge benefit because it protects homeowners from steep annual property tax increases.

However, when a property has been sold, any seller property tax exemptions and cap are removed at the end of that year and a new market and assessed value, based on market sales, is established for the next year. This new valuation can cause property taxes to increase in subsequent years.

5. Important Florida Property Tax Deadlines

Applying for the homestead exemption and other applicable exemptions are time-sensitive. Florida typically requires you to apply by March 1 of the year after you purchase your property. Missing this deadline could mean waiting an additional year to see these savings.

However, if you have missed the March 1 deadline, please check with your local Property Appraiser to see if you have any Florida Homestead late filing options available.

6. Budgeting for Property Taxes

If your property taxes are included in your mortgage escrow account, this setup ensures your taxes are paid on time, avoiding potential penalties. As previously mentioned, when there is a transfer of ownership, this triggers a reassessment in property tax and your first-year tax bill may be higher than the prior owner’s property taxes, as a result it is important to not based your future budget on what the prior owner was paying in property taxes.

Summary – Property Tax Information for First-Time Homebuyers in Florida

Understanding property taxes as a first-time homebuyer helps you plan financially and take advantage of all the benefits Florida offers. For more detailed information on exemptions and deadlines, the Florida Department of Revenue provides further Property Tax Information.

As an FHA, VA, and USDA Approved Lender, we will walk you through the loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!

Call/Text: (863) 593-2001
800-806-9836 Ext. 280
SeanS@MPLX.org

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.