Property taxes are an essential point to consider when buying a home. Taxes can have a significant impact on your ability to afford the property. If you are considering a home in a place like Destin or Miramar Beach, you must know about property taxes on the Emerald Coast.
This guide covers property taxes at the time of writing. Readers should note that property taxes in Florida are complicated, and the codes can change. Buyers should always research current tax codes when looking for a home.
Florida bases property taxes on the property’s assessed value. The county assessor for your respective county will determine values every year. It is important to note that assessed value and appraised value are different. A home’s appraised value is more like the property’s market value. The assessed value accounts for exemptions.
Florida calculates property taxes using millage rates. One mill equals $1 for every $1,000 property value. The millage rate in Okaloosa County is 3.8308. It is 6.0953 in Santa Rosa County. Walton County has a millage rate of 3.6363. With that said, the millage rate is not an effective tax rate. A homeowner’s rate can vary significantly depending on exemptions and other factors.
Florida levies property taxes annually. The dates for paying property taxes are the same in the Emerald Coast as they are across the state. Homeowners must have their property taxes paid by March 31. Tax authorities will apply penalties starting April 1.
However, there are benefits to paying property taxes early. Emerald Coast property owners can pay their taxes starting November 1 of the tax year. If the owner pays by November 30, they can enjoy a discount of 4%. There is a 3% discount for paying in December, a 2% discount for January, and a 1% discount for February.
Homebuyers should also consider the value of homestead exemptions. You can apply for homestead status if the home is your primary residence. The homestead exemption can reduce the home’s assessed value by as much as $50,000. That means your tax assessment won’t account for the exempt value of the home.
A property with homestead status may also enjoy protection under the Save Our Homes amendment. This law limits the amount a home’s assessed value can increase for the purposes of taxation. The cap is 3% for the amount assessed value can increase in one year. That means a sudden jump in property values won’t result in an equal increase in your taxes.
Are you interested in buying or selling property on Florida’s Emerald Coast? Click here to contact Mike Jones. Mike is a local real estate expert with extensive knowledge of the market. He can help you achieve your real estate goals on the Emerald Coast.
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