Taxes
Government and Taxes
State and Local Taxes
10 Min Read | Aug 7, 2023
By Ramsey
There are plenty of reasons to love Florida! There’s warm weather year-round, beautiful beaches up and down both coasts, some of the best amusem*nt parks in the country, property taxes . . . wait, what was that last one?
While Florida is one of only a handful of states with no state income tax, there are other ways local governments try to collect their “fair share”—including property taxes on any real estate you own in the Sunshine State.
If you’re wondering how property taxes work in Florida, who exactly owes this tax, and how much you might owe on the land underneath your feet, you’ve come to the right place. Let’s dive right in!
How Does Florida’s Property Tax Work?
A property tax is paid by someone—an individual or a business—who owns a piece of real estate. How much you owe depends on how much your home is worth and the tax rate set by your local government.
According to the Florida constitution, all property tax rates are set by the state’s local governments—including county governments, city governments and school districts—and all the revenue from those taxes goes straight to them. That means the state itself actually doesn’t see or use any of that money.
Usually, local governments will charge property taxes using a millage rate. Take a deep breath, because millage rate can get a little confusing. Millage is a tax rate defined as the “dollars charged for each $1,000 of value.”1 One mill equals one dollar of tax for every $1,000 of your property’s assessed value. We’ll get more into this a little later.
Property taxes are also based on the market value of your property, which is determined by Florida’s property appraisers at the beginning of each year. Property appraisers also review and apply exemptions, assessment limitations, and classifications that could lower your property's taxable value.
Then tax collectors are responsible for sending you your property tax bill (if you don’t already pay your property tax through your mortgage) and collecting your tax payments. They’re the folks who will answer questions about payment options and give refunds if you happen to overpay on your property taxes.
After collecting what you owe, the tax collector sends all that property tax money to your local governments. Then they’ll put those tax dollars to work! In Florida, property taxes are used to fund public schools and infrastructure, including roads, libraries and some medical services.
Who Pays Property Tax in Florida?
Every homeowner in Florida will have to pay property taxes based on their home’s value and the property tax rates in their county or city. But homeowners aren’t the only folks who are on the hook for property takes.
If you run a business that owns property, own any rental properties in the state (this includes those of you who live in another state), or inherited property from a loved one as part of their estate, guess what? You owe property taxes on those properties.
And there’s no minimum or maximum of property tax you could owe in Florida. Whether you have a $5,000 shack in the Everglades or a beach house in Tampa, you will owe real property taxes on that property.
How Is Property Tax Calculated in Florida?
Your property tax rate (and how much you’ll owe) depends on a few different factors, including the county you live in, the exemptions you qualify for, and the value of your home. Here’s the basic equation to help you figure out how much you owe in property tax:
(Taxable Value of Your Property / 1,000) x Millage Rate = Property Tax Owed
Taxes don’t have to overwhelm you. See what’s best for your situation—and services you can trust.Here’s a scenario to help paint the picture a little more clearly. Let’s say you own a home in Orlando, which is located in Orange County, and your county appraiser looks at your property and determines your home is worth $350,000.
But you might not owe taxes on the entire value of your property if you qualify for certain exemptions. For example, if you qualify for the homestead exemption (more on that later), that allows you to write off up to $50,000 worth of value from your home. Now you’ll only pay property tax on $300,000 of your home’s value. Nice!
Let’s say that the millage rate for Orange County is five mills. Remember, one mill equals $1 in property tax for every $1,000 of your home’s value. So in this case, you would pay $5 in property tax for every $1,000 of your home’s assessed value.
So, using the property tax equation we showed you above, here’s how you would calculate how much you owe:
($300,000 / 1,000) x 5 mills = $1,500
In this case, you would owe $1,500 in property tax for the year to Orange County. If that amount is included in your monthly mortgage payment, that means you’ll pay about $125 each month in property taxes as part of your payment.
What Are the Average Property Tax Rates in Florida?
According to the Tax Foundation, Florida ranks No. 26 when it comes to property taxes paid as a percentage of housing value, with an effective property tax rate of 0.91%.2
But remember, not everyone in Florida has the same property tax rate. A homeowner living in the suburbs somewhere in the Florida Panhandle, for example, won’t pay the same property tax as the owner of a high-rise condo in downtown Miami.
Okay, so before we drop this huge table in your lap, we need to explain it a bit—particularly the term average effective property tax rate. Yeah, that’s not a phrase you hear every day (we don’t hear it every day either and taxes are, like, our thing).
Governments take joy in making things complicated for some reason, which is why your regular property tax rate is set by your local government in millage rates (remember that?). And like we just showed you, trying to calculate how much you owe using millage rates can feel like you’re back in eighth grade algebra class. Shudder.
Enter the effective property tax rate,which is the percentage of your home’s actual market value that you’ll pay in property taxes each year. All you have to do is multiply what your home is worth by the effective property tax rate, and that’s roughly how much you should expect to pay in property tax.
For example, if the effective property tax rate in your county is 1% and your house is worth $300,000, that means you’ll owe about $3,000 in property taxes. It’s that simple!
Here are the average effective property tax rates for every county in Florida:
County | Median Home Value3 | Median Annual Property Tax Payment4 | Average Effective Property Tax Rate |
Alachua County | $296,920 | $2,313 | 0.78% |
Baker County | $216,380 | $1,180 | 0.55% |
Bay County | $306,820 | $1,336 | 0.44% |
Bradford County | $157,200 | $909 | 0.58% |
Brevard County | $341,280 | $1,801 | 0.53% |
Broward County | $432,230 | $3,008 | 0.70% |
Calhoun County | $127,210 | $614 | 0.48% |
Charlotte County | $348,270 | $2,064 | 0.59% |
Citrus County | $254,670 | $1,103 | 0.43% |
Clay County | $333,790 | $1,732 | 0.52% |
Collier County | $523,690 | $2,807 | 0.54% |
Columbia County | $214,450 | $1,301 | 0.61% |
DeSoto County | $138,940 | $1,178 | 0.85% |
Dixie County | $104,390 | $560 | 0.54% |
Duval County | $310,060 | $1,861 | 0.60% |
Escambia County | $255,040 | $1,212 | 0.48% |
Flagler County | $399,900 | $2,103 | 0.53% |
Franklin County | $244,930 | $1,218 | 0.50% |
Gadsden County | $122,500 | $765 | 0.62% |
Gilchrist County | $166,920 | $957 | 0.57% |
Glades County | $97,480 | $891 | 0.91% |
Gulf County | $235,300 | $1,232 | 0.52% |
Hamilton County | $107,350 | $678 | 0.63% |
Hardee County | $124,750 | $1,102 | 0.88% |
Hendry County | $144,240 | $1,192 | 0.83% |
Hernando County | $284,080 | $1,380 | 0.49% |
Highlands County | $202,970 | $1,006 | 0.50% |
Hillsborough County | $384,150 | $2,326 | 0.61% |
Holmes County | $104,880 | $520 | 0.50% |
Indian River County | $354,780 | $1,892 | 0.53% |
Jackson County | $129,310 | $651 | 0.50% |
Jefferson County | $177,950 | $1,151 | 0.65% |
Lafayette County | $126,350 | $869 | 0.69% |
Lake County | $322,590 | $1,899 | 0.59% |
Lee County | $371,350 | $2,354 | 0.63% |
Leon County | $288,960 | $2,000 | 0.69% |
Levy County | $160,650 | $918 | 0.57% |
Liberty County | $126,470 | $894 | 0.71% |
Madison County | $109,820 | $847 | 0.77% |
Manatee County | $410,980 | $2,318 | 0.56% |
Marion County | $245,660 | $1,376 | 0.56% |
Martin County | $429,190 | $2,701 | 0.63% |
Miami-Dade County | $467,940 | $2,964 | 0.63% |
Monroe County | $816,090 | $3,567 | 0.44% |
Nassau County | $396,210 | $1,983 | 0.50% |
Okaloosa County | $359,930 | $1,623 | 0.45% |
Okeechobee County | $155,100 | $1,124 | 0.72% |
Orange County | $399,630 | $2,461 | 0.62% |
Osceola County | $355,500 | $1,982 | 0.56% |
Palm Beach County | $453,330 | $3,088 | 0.68% |
Pasco County | $300,970 | $1,634 | 0.54% |
Pinellas County | $373,910 | $1,923 | 0.51% |
Polk County | $267,940 | $1,398 | 0.52% |
Putnam County | $140,910 | $1,054 | 0.75% |
St. Johns County | $505,720 | $3,077 | 0.61% |
St. Lucie County | $344,390 | $2,395 | 0.70% |
Santa Rosa County | $336,170 | $1,502 | 0.45% |
Sarasota County | $438,640 | $2,409 | 0.55% |
Seminole County | $408,850 | $2,148 | 0.53% |
Sumter County | $398,790 | $2,645 | 0.66% |
Suwannee County | $145,720 | $956 | 0.66% |
Taylor County | $98,960 | $665 | 0.67% |
Union County | $150,530 | $856 | 0.57% |
Volusia County | $312,990 | $1,785 | 0.57% |
Wakulla County | $211,590 | $1,363 | 0.64% |
Walton County | $481,460 | $1,424 | 0.30% |
Washington County | $154,110 | $699 | 0.45% |
How to Pay Property Taxes in Florida
Do you pay your mortgage every month? Then chances are you’re already paying your property taxes. That’s because most mortgage payments include partial payments for your Florida property taxes that go into an escrow account each month. When your property tax is due, your mortgage company pays it for you from that account.
Just to make sure, look at your current monthly mortgage statement when you get a chance—there should be a line item on your statement that lists your property tax.
If not, then that means you’ll probably have to pay your county’s tax collector directly. The Florida Department of Revenue can help you access each county’s payment options.5
How to Lower Your Florida Property Tax Bill
Do you want to reduce how much you pay in property tax? Of course you do! The good news is that Florida offers severalproperty tax exemptions that can lower your tax bill if you qualify for them.
The most common exemption is the homestead exemption, which helps thousands of Florida homeowners save money on property taxes each year. Here’s how it works: If you own property and it’s your permanent residence (or the permanent residence of one of your dependents), then the homestead exemption could decrease your home’s taxable value by up to $50,000.6
There are also exemptions available for several other groups of folks in Florida:
- Property owners with disabilities
- Widows and widowers
- Senior citizens
- Veterans and active-duty military service members
- Spouses of first responders who died in the line of duty
- Properties with specialized uses7
Veterans in particular can qualify for four different types of exemptions, and widows and widowers are entitled to a $5,000 exemption (as long as they haven't remarried and weren't divorced when their ex-spouse died).8 Legally blind homeowners are also entitled to a $5,000 exemption.9
Get Help From a Tax Pro
Whether you’ve lived in Florida your whole life or you’re thinking about moving down there for the first time, property taxes are part of the deal. And if you’re planning a move to Florida, you’ll have more than just property taxes to think about.
Our network of RamseyTrusted tax pros in the Sunshine State can help you plan for any new tax situations you could face if you decide to make Florida your new home state.
Find your tax pro today!
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About the author
Ramsey
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.
