Figuring the home tax for a new home in Florida sounds like a daunting task but in reality it is much easier than you might think. There are a couple figures that you will need to know in order to complete the task of figuring your home tax.
These numbers include the Just Value of your new house, any Assessment Limitations. Applicable Exemptions and the millage rate for your county.
This may sound like a lot of information to find but it’s quite simple. Let me explain what each figure is and you will see what I mean. The Just Value is really the market value of your house. The Assessment Limitations are government programs that offer a tax break i.e. Save Our Homes. When you Subtract the Assessment Limitations from the Just Value you are left with the “Assessed Value:”
- Just Value (Market Value) – Assessment Limitations (i.e. Save Our Homes) = “Assessed Value”
Applicable Exemptions are any tax exemptions that you might qualify for such as the Homestead Exemption. There is quite a long list of possible exemptions so you might want to consult a property tax expert to make sure you are receiving the benefits of all possible exemptions. When you subtract the Applicable Exemptions from the Assessed Value we determined above you are left with the “Taxable Value.”
- Assessed Value – Applicable Exemptions = “Taxable Value”
The last part of the equation is determining the millage rate. The millage rate can be found on the website of the County Assessor’s office or you could simply call the Property Tax Collectors Office.
Once you have these two figures, Taxable Value and millage rate, computing the home tax for a new house in Florida is as easy as plugging these numbers into a simple formula. The formula states:
- Taxable Value X Millage Rate / 1000 = Total Property Taxes
To show you how you would actually compute your home tax lets use the follow numbers in our example. Say you purchased a new home in the state of Florida which has a market value of $500,000 and the millage rate of your county is 3.055. You also qualify for $100,000 in Save Our Home Protections and a $50,000 Homestead Exemption. Our calculations would look something like this.
- $500,000 (Market Value) – $100,000 (Assessment Limitations – Save Our Homes) = $400,000 (Assessed Value)
- $400,000 (Assessed Value) – $50,000 (Applicable Exemptions – Homestead) = $350,000 (Taxable Value)
- $350,000 (Taxable Value) X 3.055 (Millage Rate) / 1,000 = $1,069.25
After plugging our numbers into our formula we arrive at a total property tax of $1,069.25.
As you can see once you have the couple of amounts necessary to plug into the simple equation figuring your home tax for a new home in the state of Florida is not all that difficult.