Florida Property Tax Guide: Structure, Exemptions and Steps

A huge amount of your income goes to real estate taxes. Whether you are a Floridian homeowner or about to buy a home in Florida, it is important to understand Florida property tax. With important changes coming in 2025, understand how taxes impact your finances.

This guide covers the basics of Florida property taxes, the structure of exemptions, how to access tax records, and a 5-step process to file property tax. It gives you the info you need for effective property management in Florida.

In 2025, Florida's average property tax rate is expected to remain at 0.80%, below the national average of 0.99%. Homeowners typically pay around $2,338 annually in property taxes, though this varies by county.

With the recent approval of Amendment 5, you can expect adjustments to their homestead exemptions based on inflation. This will lead to greater savings for homeowners over time.

Property taxes in Florida are calculated based on the assessed value of your property and local millage rates set by taxing authorities. Each January 1, county appraisers assess property values.

These assessments are used to determine tax bills, which are sent out in late October or November. Homeowners must pay their taxes by March 31st of the following year.

NOTE: Florida does not have a state income tax, making property taxes a primary revenue source for the government.

Florida offers several property tax exemptions to reduce taxable value. These are as follows:

• Florida Homestead Exemption: It reduces taxable value by up to $50,000. Eligibility requires legal or equitable title and permanent residency.

• Veterans' Disability Exemption: It provides a $5,000 exemption for eligible veterans with a 10% or greater VA-certified service-connected disability.

• Senior Citizen Exemption: It offers an additional $50,000 exemption for Florida residents 65 or older.

• Widow/Widower Exemption: This is a $5,000 exemption for permanent Florida homeowners.

Homeowners can visit their county's property appraiser's website for property tax records. Most counties, like Nassau, provide an online property search tool.

These platforms allow you to search by owner name, address, or parcel number to view assessed values, exemptions, and tax history. This helps homeowners understand their tax obligations. It also informs them of potential savings from exemptions.

When a Florida homeowner passes away, their property is reassessed for tax purposes. If there is no surviving spouse, the "Save Our Homes" cap is lost, which had previously limited tax increases. As a result, the property is taxed at its full market value, leading to a significant tax increase.

Furthermore, heirs must make the inherited property their primary residence by 1 January of the following year to keep any homestead exemptions. Otherwise, they will lose those benefits.

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Part-time Florida residents may be eligible for tax exemptions, but only if they meet specific requirements. However, to claim a homestead exemption, you must be a full-time resident with the home as your primary residence.

Part-time residents may be eligible for other discounts, such as for seniors or veterans if they fulfill residency criteria. To establish residency, documentation such as a Florida driver's license or voter registration is necessary.

If part-time residents fail to meet these criteria, they will not be eligible for Florida's property tax discounts.

To file property tax in Florida, follow these 5 steps:

• Determine Eligibility: Check if you are eligible for exemptions like the Homestead Exemption. You must be a Florida resident and occupy the property as your permanent residence.

• Gather Required Documents: Collect necessary documents, including a Florida driver's license, Social Security numbers, and proof of voter registration. If applicable, provide documentation of previous residency and any existing exemptions.

• Complete the Application: Fill out the exemption application form (Form DR-501 for Homestead) accurately. Include your property identification number and indicate the type of exemption you are applying for.

• Submit Your Application: File your completed application by March 1 to ensure consideration for the current tax year. Applications can be submitted in person or mailed to your county's property appraiser's office.

• Await Confirmation: After submission, track your application status. In August, you will get a Notice of Proposed Property Taxes TRIM. It will detail any exemptions and the estimated tax due.

In addition to property taxes, Florida imposes a state sales tax of 6%, with local surtaxes potentially adding up to 2%. Short-term rental income is subject to state sales tax and may also be subject to local discretionary sales surtax.

It's crucial to understand these extra taxes for your budget. Property taxes also fund local services, like schools and safety.

As of January 2025, Florida's property tax landscape is evolving. The median property tax stands at $1,459 annually for a home valued at $182,400, equating to an effective rate of 0.80%.

Understanding the tax system is important for homeowners and prospective buyers. By understanding tax rates, exemptions, and recent legislative changes, you can make informed decisions and potentially reduce your tax burden.

If property taxes remain unpaid in Florida, they become delinquent on April 1. A 3% penalty is added, and by May, the property may be advertised for tax certificate sale. Continued non-payment can lead to a tax deed sale, where the property may be sold to recover owed taxes.

Florida provides exemptions from property tax for eligible veterans. Veterans who have been honorably discharged and have at least a 10% disability connected to their service can get a $5,000 exemption. Plus, veterans who are totally and permanently disabled may be eligible for a full exemption from tax on their homestead property.

The average property tax rate in Florida is approximately 0.80% of the assessed value. However, rates vary by county and property value.

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