Frequently Asked Questions About Property Tax
How much will my Property Tax be?
Your Property Tax amount will be estimated at ~2% of YOUR purchase price of the Property.
When will I be billed for Property Tax?
In Broward County, we are billed once per year (in November) for Property Taxes.
I am buying a Bank Owned Foreclosure. How much will my Property Tax be? Please see the information below and contact the Property Appraiser's Office if you have further questions about estimated Taxes. Their number is 954-357-6830.
The Property Tax Appraiser's Office provided the following information in reference to Tax Assessments for Bank Owned Foreclosure purchases:
"If you purchase a property in a foreclosure, your actual purchase price might not reflect the market value used for determining your taxes. The Florida Department of Revenue (DOR) issued an advisory opinion that foreclosures generally should not be used for assessment purposes -- but Property Appraisers MIGHT qualify a foreclosure sale if the property was listed for sale on the MLS open market and the property is in normal/good condition. Tax Year 2009 was the first time in which DOR allowed foreclosure sales to be qualified in determining assessments. We believe -- and DOR agrees -- those MLS-listed foreclosure sales are arm's length "normal market condition" sales under the current recessionary economic conditions and reflect market values. "
I am buying a Property sold through Short Sale. How much will my Property Tax be?
Your Property Tax amount will be estimated at ~2% of YOUR purchase price of the Property.
How much is the current Owner paying for Property Tax?
Your Property Tax amount will be estimated at ~2% of YOUR purchase price of the Property and IS NOT based on what the current Owner is paying for Property Tax.
What is the Property Tax amount for Canadians, Europeans, and other Foreign Buyers?
Your Property Tax amount will be estimated at ~2% of YOUR purchase price of the Property. Foreign Buyers are not charged a higher Property Tax amount than Domestic Buyers.
I am buying a Condo or other Property that's located within a Community that's governed by an Association. Are Property Taxes included in the monthly HOA/Maintenance/Association amount that I will pay?
No, Property Tax IS NOT included in the HOA amount.
Are there State Taxes on Property in Florida?
No, there are not. Unlike some States (i.e. California, New York, New Jersey, and others), the State of Florida DOES NOT charge a State Income Tax and this is a distinct advantage for Florida Property Owners.
Are Property Tax Discounts available?
Yes, they are. If you are a legal Resident of the State of Florida AND the Property you're purchasing will be used as your Permanent Residence/Primary Residence/Homestead, various Homestead Exemptions are available in addition to the Save our Homes Amendment for Homestead Owners which caps the Tax assessed market value of your Home from increasing more than 3% in any year. Because Property values typically increase in the future and Homestead Property Owners are enjoying savings through the Save Our Home Amendment Tax cap, Homestead Property Owners accrue more savings on Taxes as their length of property Ownership time increases (i.e. a Homestead Property Owner who's owned a Home for 20 years might only be paying $10,000 per year on Taxes for a Property that would be assessed $30,000 per year in Taxes for a new Owner). Scroll below for additional details about Homestead Tax Discounts.
What are the IRS Tax savings when purchasing a Home?
When you purchase a home, the items that you will be able to itemize as deductions on your yearly Tax Return include the amount of your Property Tax and the amount of the Interest paid on your Mortgage. How much YOUR specific savings will equal will depend on your Income Tax bracket and the amount of your standard Income Tax deduction. Obviously, these amounts vary from one person to the next. Consult a Tax professional in order to determine what YOUR individual Tax savings will be when purchasing a Home.
On January 29, 2008, Florida voters overwhelmingly approved Amendment 1 to grant added tax relief to property owners. The new Florida Constitutional Amendment doubles the homestead exemption to $50,000; gives homesteaded owners the "portability" right to move Save Our Homes benefits to a new homesteaded property; grants businesses and mobile home residents a $25,000 break on tangible personal property taxes; and caps annual increases for non-homesteaded properties to no more than 10%. Most importantly, the proposal fully preserved our existing 3% Save Our Homes cap.
Homesteaded owners do NOT need to apply for the additional savings, as the $50,000 homestead exemption amount will be automatically applied starting this year. The Florida Department of Revenue (DOR) has drafted some initial forms and guidelines -- and is now working on drafting the administrative rules and additional forms to implement the rest of these new benefits. Click here to visit the DOR website tracking these developments. You can also read the enabling legislation for the amendment by clicking here if you'd like to learn more.
If you had homestead on one Florida property in and are now seeking to move your homestead to a new location in:
Please return the completed portability form to the Broward County Property Appraiser's Office, 115 South Andrews Avenue, Room 111, Fort Lauderdale, Florida 33301); or by emailby email (attach in PDF format); or by fax (954.357.8474).
If you are a Broward business owner, filing your tangible personal property tax return with our office will also serve as your application for the new $25,000 exemption on tangible personal property.
The Amendment overview:
Increases the Homestead Exemption from $25,000 to $50,000. This additional exemption of $25,000 will only apply if the assessed value of the property exceeds $50,000. There are very few properties in South Florida assessed for less than $50,000; therefore, most properties in our area would receive the full additional exemption. However, this additional $25,000 exemption would not apply to the school district levies. Since the school district taxes represent approximately 40% of South Florida tax bills, the additional $25,000 exemption would be equivalent to about $15,000, making the new total annual homestead exemption equivalent to about $40,000. Assuming an average South Florida millage rate of 2 mils, a $40,000 exemption will save the homestead taxpayer about $800 per year, or about $300 more than the current homestead exemption saves.
Gives Homesteaded Owners the "portability" right to move Save Our Homes benefits to a new Homesteaded property (preveiously, you were unable to do that).
“Portability” allowing homestead property owners to transfer up to $500,000 of “assessment difference” to a new home. The amount of the “assessment difference” is the difference between the “just market value” and the “tax assessed value” of the owner’s current home. Homestead property owners purchasing a new home of equal, or greater, value will be allowed to transfer 100% of their “assessment difference”. The amount of “assessment difference” which can be transferred when the new home’s “just market value” is less than the old home’s “just market value”, will be reduced by the same percentage difference existing between the values of the two homes. For example, if the assessment difference which has accumulated in the old home is $500,000 and the old home’s value is $1,000,000 and the new home’s value is $600,000, the owner would be limited to using only 60% of his or her “assessment difference”, or $300,000, to reduce the tax assessed value of the new home. If the Amendment passes, owners who qualified for homestead exemption on January 1, 2008 will be allowed to transfer their “assessment difference” from a property where they held a homestead exemption in 2007. If an owner qualifies for homestead exemption for a new home by January 1st of any particular after 2008, they may transfer their “assessment difference” from a homestead property that they owned in either of the two immediately preceding years. All other features of the Save Our Homes Amendment would remain intact, including the limit of increase upon the annual tax assessed value to a percentage no greater than the previous year’s CPI or 3%, whichever is less.
Grants Businesses and Mobile Home Residents a $25,000 break on tangible personal property taxes. Allowance of a $25,000 annual exemption for business tangible personal property. This exemption would also include school district levies. Tax savings would be equal to about $500 per year.
Caps annual increases for non-Homesteaded properties to no more than 10% (this would help Landlords and others who own properties that aren't their Primary Residences). Currently, there are no Tax Increase Caps in existence for non-Homesteaded Properties. Limit the increase of non-homestead property tax assessed values to 10% per year for levies of all taxing authorities other than school districts. The assessment increase limitation would apply until there is an ownership change or until there is an improvement to the property that increases its just market value by at least 25%.
The proposal also fully preserves the existing 3% Save Our Homes cap.