How are Real estate taxes calculated?

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How are Real estate taxes calculated?

 

Florida real estate taxes can vary widely from one municipality to the next because of complex rules that determine the value of a property. In order to determine how much someone will pay in Florida real estate taxes, this sequential process is followed:

Appraiser Determines Just Value

The property appraiser assesses all real property on January 1. This is often between 85 and 95 percent of the value of the home. A new homeowner’s assessed value is the just value. For other property owners in which the property is their homestead, the following year’s assessed value cannot legally be increased by more than 3% or by the Consumer Price Index, whichever figure is less. For non-homestead properties, an increase in appraised value can be up to 10% each year.

Exemptions and Limitations Are Made

Limitations and exemptions are then subtracted from the original figure. These may include the homestead exemption, veteran’s exemption, widow’s exemption or other limitations or exemptions permitted by the state or county. Once these deductions are made, the new figure becomes the property’s taxable value.

Millage Rate Is Applied

The final number that is used in this computation is the millage rate, which is established by the taxing district. The taxing district determines this rate by dividing its total proposed budget by the total taxable value of all real property in the taxing district. The millage rate is the amount that is applied per $1,000 of assessed value. For example a millage rate of “25” would result in $25 per $1,000 of the assessed value. For a home with a taxable value of $1,000,000, the tax liability based on this computation would be $25,000. Property owners may receive a discount for paying taxes early.

If you are interested in buying or selling property, call Alex Larmier at 786-301-5357, or email the team at theteam@mymiamiexperts.com.