Q:  What are the real estate taxes on this home?

A:  We are asked this question daily.  In Florida, this is absolutely the wrong question to ask if you’re trying to estimate the taxes on a home you’re considering for purchase.  (Please keep in mind that the following pertains to Florida real estate taxes and are not necessarily true for other states)

Current taxes on any home in Florida can me misleading and not an indication of what a new owner can expect to pay.  By law, Florida residential property is taxed at the just market value of the property as determined by the local property appraiser.  Real estate taxes vary from county to county as the rates are set by the local governing authorities.   These appraisals are redone for every property in each county every year by the local property appraiser as required by Florida law.  When a property sells (assuming an arms-length transaction) the county appraiser will appraise at a value at or near the selling price, as this will be assumed to be the current market value.  Adjustments may be made if the owner decides to homestead the property (making it their primary residence) thus receiving a $50,000 deduction from their just market value (some restrictions apply).  Additionally, if the homeowner has some disabilities there may be additional deductions available to claim.  A good site for viewing homestead exemption rules can be found at the Martin County Property appraiser’s page here.

If the home has been owned for a long time and homesteaded, the taxable value is most likely much less than the just market value of the home, as increases in the home’s value are capped at a maximum of 3% or change in the CPI as outlined by the Save Our Homes act of 1992  ( View the amendment here ).  A new homeowner could expect to pay considerably more in taxes on such a home.

Alternatively, if you are interested in a relatively new home that was purchased during the height of the real estate boom, the current valuation on such a property may be much more than the actual value and you may expect to pay a lot less in real estate taxes depending on the purchase price of such a home.

If you are considering purchasing a home or condo in Florida, search for the property appraiser of the county in which the property is located.  Chances are the property appraiser will have a website and a tax estimator.  For instance, here’s the tax estimator for Martin County and one for Saint Lucie County.  Alternatively, when you ask your trusted Realtor, the question should be: “What do you estimate my real estate taxes will be on this property?”

For more information, visit our website or call us at (772) 888-2885.
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