How Is Property Tax Calculated in Florida?

Understanding how property tax is calculated in Florida is an important aspect of homeownership. Property taxes fund local government services like schools, infrastructure, and public safety. These taxes vary across locations and depend on property characteristics. Understanding the calculation process directly impacts annual financial obligations.

Determining Property Value

The county property appraiser establishes a property’s assessed value each year as of January 1. This process starts with determining the “Just Value,” which is the property’s market value. Appraisers consider recent sales of comparable properties, the property’s physical characteristics like size, age, condition, and location, and for commercial properties, its income-producing potential.

Once a property is homesteaded, the “Save Our Homes (SOH) Amendment” (Florida Statute 193.155) limits annual increases in its assessed value. This amendment restricts the annual increase to the lesser of 3% or the percentage change in the Florida Consumer Price Index (CPI). This limitation can create a disparity between a property’s market value and its assessed value over time, benefiting long-term homeowners. When a homesteaded property is sold or changes ownership, the Save Our Homes cap is removed, and the property is reassessed at its Just Value for the new owner.

For non-homesteaded properties, such as rental or commercial properties, a “10% Non-Homestead Cap” applies. This cap limits the annual increase in assessed value to no more than 10% of the prior year’s assessed value, applying to residential properties with nine or fewer dwelling units that do not receive a homestead exemption. This limitation helps stabilize tax increases for properties not covered by the Save Our Homes Amendment. Just Value represents the market value, while Assessed Value is the value used for tax purposes after applying statutory limitations.

Applying Exemptions and Taxable Value

After the property appraiser determines the assessed value, various exemptions can reduce this value to arrive at the “Taxable Value.” This is the amount upon which property taxes are calculated. Exemptions directly impact a homeowner’s tax bill by lowering the portion of the property’s value subject to taxation.

The most common exemption is the Homestead Exemption (Florida Statute 196.031). To be eligible, the property must be the owner’s primary residence, and they must be a permanent Florida resident. This exemption offers two tiers: an initial $25,000 reduction applies to all taxing authorities, and an additional $25,000 applies to the assessed value greater than $50,000, but only for non-school taxes.

Florida provides other exemptions that can reduce a property’s taxable value.
The Senior Citizen Exemption (Florida Statute 196.075) provides up to $25,000 for homeowners aged 65 or older, if their household income does not exceed a specified limit.
The Widow/Widower Exemption (Florida Statute 196.202) offers a $5,000 reduction for Florida residents who are widows or widowers.
Disability Exemptions (Florida Statutes 196.081, 196.091, and 196.101) offer varying levels of exemption for permanently and totally disabled persons, including veterans with service-connected disabilities, those confined to wheelchairs, or the legally blind.
First Responder Exemptions are available for certain totally and permanently disabled first responders and their surviving spouses.

The Taxable Value is determined by subtracting all applicable exemptions from the Assessed Value. For instance, if a property has an assessed value of $100,000 and qualifies for a $50,000 homestead exemption, its taxable value would be $50,000.

Understanding Millage Rates

Millage rates are important for calculating property taxes, representing the tax rate applied to each $1,000 of taxable value. One mill equals one dollar of tax for every $1,000 of taxable value. These rates are not uniform across the state; various local taxing authorities determine their own millage rates.

Different governmental entities, such as county governments, city governments, school boards, and special assessment districts (e.g., water management districts), establish their individual millage rates. Each authority sets its rate based on its annual budget requirements and the total taxable value within its jurisdiction. This process involves public hearings where proposed rates are discussed and adopted.

A property owner’s total millage rate is the sum of all applicable individual millage rates for their geographic location. For example, a property might be subject to separate millage rates for the county, city, and school board, which combine to form the overall rate. The final adopted millage rates are then applied to the taxable value of properties to determine the tax liability.

Calculating Your Property Tax Bill

The calculation of a property tax bill follows a simple formula: Property Tax = (Taxable Value / 1,000) x Total Millage Rate. This formula converts the taxable value into units of $1,000, then multiplies it by the combined millage rate.

For example, if a property has a taxable value of $100,000 and the combined total millage rate for all applicable taxing authorities is 15 mills, the property tax would be calculated as ($100,000 / 1,000) x 15 = $1,500. This shows how taxable value and millage rates determine the final tax amount.

Homeowners receive a “Notice of Proposed Property Taxes,” known as a TRIM (Truth in Millage) Notice, annually in August. This notice is not a bill but an informative document detailing the proposed assessed value, approved exemptions, proposed millage rates from each taxing authority, and the calculated proposed tax amount. The TRIM notice provides transparency, allowing property owners to review their proposed tax calculation before the final bill is issued, and includes contact information for inquiries.

Challenging Your Property Assessment

Property owners who believe their assessment is inaccurate have a formal process to challenge it. The initial step is often an informal review with the County Property Appraiser’s office. This discussion allows owners to present evidence, such as comparable sales data, professional appraisals, or photos, to support a claim for a revised valuation.

If an agreement is not reached during the informal review, a property owner can file a petition with the Value Adjustment Board (VAB) (Florida Statute 194.011). The VAB is an independent body that reviews disputes concerning property values and exemption denials. Petitions must typically be filed within 25 days of the TRIM notice mailing, usually by mid-September.

The VAB hearing allows property owners to formally present their case; the VAB often appoints a special master to hear evidence and issue a recommendation. Issues that can be appealed include the property’s assessed value and the denial of an exemption. This process ensures property owners have avenues to address concerns regarding their property tax assessments.