Florida offers new residents a compelling combination of lifestyle, business access, and tax advantages. The state's favorable tax environment is one of the many reasons buyers are drawn to South Florida, especially those establishing a primary residence with long-term ownership in mind.
Regardless of where you're moving from, it's important to understand how property taxes work in Florida, including potential savings opportunities. Our team at The Keyes Company has more on what you can expect from property taxes when you relocate to Florida.
What New Florida Residents Should Know About Property Taxes
How Florida Property Taxes Are Calculated
Florida doesn't use a flat property tax rate like some other states; instead, it calculates taxes based primarily on the home's assessed value, along with exemptions and local millage rates. The assessed value of the home is based on an appraisal by the county property appraiser, and may differ from the current market value, particularly over time as assessment limits take effect.
The taxable value of your home comes from subtracting any exemptions that you have available from the assessed value of the home. There is a wide range of potential exemptions available, depending on your circumstances when you relocate and after you have moved to the state. The local government then applies millage rates, which can vary significantly by municipality.
Get to Know the Florida Homestead Exemption
The Florida Homestead Exemption is one of the key property tax exemptions that many people will qualify for, and can reduce the taxable value of your primary residence by up to $50,000, though the structure of the exemption means a portion does not apply to school taxes.
There are a few key guidelines to qualify for the Homestead Exemption:
- You must be a Florida resident
- Your home must be your primary residence as of January 1 of that year
- You must legally own the property and structures on it
- You must be the owner, not a renter
- You may only claim one homestead exemption on your primary residence
The Homestead Exemption also provides a variety of legal protections. The standard deadline to apply is March 1, though if that date falls on a weekend or holiday, it may be extended to the next business day. It's well worth applying once you meet the requirements.
Benefits of the Save Our Homes Cap
The Save Our Homes Cap is another key benefit of owning real estate in Florida, offering long-term predictability by limiting annual increases in assessed value. It's a constitutional amendment to the state constitution that caps the yearly increase in your home's assessed value at 3 percent or the Consumer Price Index, whichever is lower in a given year.
Since the assessed value is key to property tax calculations, this can help protect homeowners from sharp increases in taxable value, even as market values rise.
Portability and Property Taxes
If you live in Florida for a time and eventually decide to move to a new home within the state, some of your key tax benefits can travel with you. The portability rule allows you to transfer up to $500,000 of your Save Our Homes assessment difference to a new residence, as long as you're moving in-state.
Ready to Plan Your Relocation to Florida?
When you're ready to plan for your move to South Florida, your real estate team should be your greatest asset. Our team at The Keyes Company is here to help you navigate every step, from understanding property taxes to identifying opportunities that align with your long-term goals. Get in touch to learn how we can support your relocation to Florida.
