Property taxes in Florida can be a bit confusing. A common question we get is why are the taxes so high or so low on a particular property or how much are my property taxes going to be? The answer involves a number of factors.
- Individual assessed value of a home, which is different from sale price or asking price. Every home is assessed separately not based on its sale price but on formulas used by the county appraiser’s office. We find almost every home is assessed lower than actual market value but every home is different. We have seen homes assessed values vary from 70% to 90% plus of current market value.
- Property tax exemptions may be in place on the home:
- Homestead which provides up to $50000 in reduction of taxable property values. This for resident homeowners. Homes which are not homesteaded will have higher tax bills.
- Special exemptions may be in place for certain seniors or persons with permanent disabilities. These can further reduce taxes on a specific home.
- The taxable value on a home which has been homesteaded for a number of years is generally lower than one which has not been homesteaded. A homesteaded home can only increase in taxable value by 3% a year or the consumer price index whichever is lower. For example, if home values go up by 10% taxable value only goes up from less than 1% to 3% depending on cpi that year. A new buyer will pay the full assessed value less any exemptions they qualify for. An exception is a buyer selling a Florida homesteaded residence may transfer all or part of their homestead benefit to their new home.
- There is up to a year delay in assessment changes. For instance, a new construction home built in 2016 will be taxed on lot tax value until 2017.
- Some homes have special assessments such as utility expansion fees which are added to the tax bill. These can add several thousand dollars per year to a tax bill. These vary in amount and length of payment depending on the area the home is in. Not all homes have these special assessments.
How much will my taxes be when I buy a home?
The Lee county property appraiser site has a tax estimator which can you use or call us to talk. Generally, we find taxes to be about 2% of the taxable value and taxable value 80-90% of market value less exemptions you qualify for. Special assessments if any are added to that.
For questions about taxes or real estate in general call:
Ross Winchel
Broker/Associate
Koffman and Associates
Century 21 Sunbelt Realty
239-898-1214
Ross.Winchel@gmail.com
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