What is Property Tax in Florida

Property Management Blog

As a property management company in Palm Coast, FL, we understand that buying a home is a significant investment. One factor that home buyers should consider when purchasing a property is property tax. Property tax in Florida is a significant expense for property owners and can often be a source of confusion and frustration. In this article, we aim to provide a comprehensive guide on what home buyers in Florida should know about property tax.

What is Property Tax? 

Property tax is a tax levied on real estate properties, including homes, commercial buildings, and vacant land. In Florida, property tax is levied by the local government and is used to fund public services such as schools, fire departments, and police departments. The tax rate is determined by the county property appraiser's office and is based on the assessed value of the property.

Assessed Value

The assessed value is determined by the county property appraiser's office and is based on several factors, including the property's location, size, and condition. The assessed value is then multiplied by the millage rate to determine the property tax amount. Home buyers should review the tax assessments of properties they are interested in and ensure that they are accurate.

Homestead Exemption

Florida offers several property tax exemptions to homeowners, including homestead exemptions for primary residences. Homestead exemption is a legal provision that provides a significant reduction in property taxes for homeowners who use their property as their primary residence. The exemption allows homeowners to exempt up to $50,000 from the assessed value of their property, resulting in a lower property tax bill.

Additional Exemptions 

Florida also offers additional exemptions for seniors and disabled persons. These exemptions can significantly reduce the property tax burden for eligible homeowners. Home buyers should research the available exemptions and factor them into their overall budget and financial planning.


If you disagree with the assessment of a property's value, you have the right to appeal. Property owners can file an appeal with the county property appraiser's office to challenge their assessed value. An appeal may be filed if there is an error in the assessment, the property has been over-assessed, or the property owner believes that the property value has decreased due to market conditions. Home buyers should be aware of the appeals process and factor it into their decision-making process.

Tax Payment

Property taxes in Florida are assessed annually, with bills typically issued in November and due by March of the following year. Property owners who fail to pay their taxes on time may face penalties and interest charges, and in some cases, may even face the risk of losing their property through a tax sale. Home buyers should be aware of the property tax payment schedule and factor it into their overall budget and financial planning.

Payment Plans

To avoid penalties and interest charges, property owners should make sure to pay their property taxes on time or arrange a payment plan with their local government. Home buyers should also research the property tax rates in their area and factor them into their overall budget and financial planning.

Additional Tips to Lower Property Tax

There are some additional tips that can help home buyers in Florida to lower their property tax bills. One effective strategy is to keep the property well-maintained and make improvements that can increase its value. This can help to increase the property's overall value, but also the taxable value, as the assessed value will be based on the property's condition.

Challenge assessments

Another strategy is to challenge the assessment of the property's value. Home buyers can hire a professional appraiser to assess the property's value and compare it to the assessed value provided by the county property appraiser's office. If discrepancies are found, an appeal can be filed and evidence presented to support the claim.

Tax incentives or abatement's

It's also important to be aware of any tax incentives or abatement that may be available in the area. For example, some local governments may offer tax breaks to property owners who invest in energy-efficient improvements, such as solar panels or energy-efficient windows.

Stay up-to-date on any changes in property tax law

Home buyers should also stay up-to-date on any changes in property tax laws in Florida. Property tax laws can change frequently, and it's important to stay informed of any changes that could affect the property tax bill. Subscribing to local government newsletters and attending local government meetings can help to stay informed.

Property Tax and Home Affordability 

When considering purchasing a home in Florida, it's important to factor in property tax when determining home affordability. Property taxes can significantly impact monthly mortgage payments, and buyers should ensure that they can comfortably afford their mortgage payments with the added expense of property tax.

It's important to research property tax rates in the area where you're considering purchasing a home. Property tax rates can vary widely depending on the location and the assessed value of the property. Home buyers should factor in the property tax rates when comparing homes in different areas and determine which areas offer the most affordable property tax rates.

Tax is a recurring expense 

Furthermore, it's worth noting that property tax is a recurring expense that home buyers should factor in when creating a long-term financial plan. Homeowners should be prepared to pay property tax for as long as they own the property. This means that property tax should be considered as a part of the ongoing expenses associated with homeownership, along with mortgage payments, utilities, and maintenance costs.

Tax rates can fluctuate

It's also important to note that property tax rates can fluctuate over time. The assessed value of a property can increase or decrease based on various factors, such as market conditions and changes in the property's condition. This means that property tax bills can also fluctuate over time. Homeowners should be prepared for changes in property tax rates and factor them into their long-term financial planning.

Work with professionals

Finally, it's important to work with professionals when it comes to property tax. Real estate agents, property managers, and tax professionals can help home buyers navigate the complex world of property tax and ensure that they are making informed decisions. By working with experienced professionals, home buyers can ensure that they are taking advantage of all available tax benefits and exemptions, while also avoiding any potential pitfalls.


In conclusion, property tax is an important consideration for home buyers in Florida. By understanding the tax laws, taking advantage of available exemptions and appeals, and staying on top of tax payments, home buyers can help ensure that they are meeting their tax obligations while still maintaining financial stability and security. Additionally, by factoring in property tax when determining home affordability and creating a long-term financial plan, home buyers can make informed decisions and achieve their dream of homeownership in Florida. As a property management company in Palm Coast, FL, we are here to assist home buyers with any questions or concerns they may have about property tax and other aspects of property ownership. We are committed to helping our clients achieve their goals and enjoy the benefits of homeownership in Florida.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.

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