As a homeowner in Florida, it is important to understand property taxes, as well as how much you owe each year. While the Sunshine State doesn’t tax income at the state level, there are other tax obligations that Floridians have – including those that are levied on real estate.
For example, if you are the owner of personal and/or business property in Florida – including space that is rented out to others – you must still pay real property taxes. This is the case, regardless of the value of that property. Therefore, if you’re planning to build a new custom home, you will have to factor in the cost of this tax obligation.
How exactly are the taxes on Florida real estate determined?
There are a couple of key factors that are considered. First, the local tax assessor will appraise the property and assess its value as of January 1st. Next, various exemptions and assessment limitations will be reviewed in order to determine whether or not the taxable value of the property may be reduced.
Then, the millage rate will be factored in. This equates to one-tenth of one percent. Therefore, the millage rate is equal to $1 in tax for every $1,000 in your home’s value. The actual tax rate that you are charged can vary, depending on which county the property is located in.
For instance, the average effective property tax rate in Brevard County is 0.90%, while the rate in Orange County stands at 1.01%. You can locate your local county’s property appraiser’s website by going to the Florida Department of Revenue at: https://floridarevenue.com.
If you’re thinking about building a new custom home in Central Florida, give us a call to discuss the floorplan, cost, and time frame for completion. We look forward to helping you turn your dream home into a reality.
Sources:
Florida Department of Revenue. https://floridarevenue.com/property/Pages/Home.aspx
Florida Property Tax. H&R Block. https://hrblock.com/tax-center/filing/states/florida-property-tax/
