Home buyers often have very common questions regarding property taxes when they are buying a home.
Everyone’s first question is “how much my tax bill will be?”
Home buyers will often look at how much the seller paid in property taxes and assume theirs will be exactly the same.
Please keep in mind the tax bill doesn’t usually stay the same when a house sells.
The seller may have qualified for Homestead Exemption which will provide an exemption for up to $50,000 in the assessed value of the property. There may be additional tax discounts for seniors, disabled homeowners, veterans, etc. that the seller qualified for as well.
Also, in 1995 Florida passed the Save Our Homes amendment which states that property taxes can only increase by 3% per year. This means if the seller owned the home for a long time and the value of the home has appreciated during that period the property taxes will increase when the county reassesses the home once the sale is complete.
You can search on the county Property Appraiser’s website for an estimate of next year’s taxes.
The other tax question buyers frequently ask is when do I pay my taxes?
Florida property taxes are paid in arrears, or at the end of the year for the year being taxed. You may pay them as early as when the bill arrives in November, but they will not be considered late until April.
If you have a mortgage your lender will typically divide your tax amount by 12 and add that amount to your monthly mortgage payment. Then they place the money in an escrow account used to pay the tax bill annually. If you don’t have a mortgage you will receive a tax bill from the county in November.
If you have additional questions I can help with please let me know.
Kelly Harden, Realtor®
Mihara & Associates, Inc.