Property Taxes in Florida: What Buyers Ask & How You Can Answer
One of the most common sources of confusion for new Florida buyers? Property taxes. From millage rates to Homestead exemptions, the system is very different from many other states. Here are answers to some of the most frequent buyer questions—so you can guide your clients with confidence.
1. Why Are Property Taxes Prorated at Closing?
Because Florida property taxes are paid in arrears (for the previous year), they are prorated between buyer and seller based on the closing date. That means the buyer will pay a portion of the current year’s taxes, even if the actual bill hasn’t arrived yet.
2. When Are Taxes Due?
Tax bills typically arrive in November and are due by March 31st of the following year. Discounts apply the earlier they’re paid—up to 4% off if paid in November.
3. What is the Homestead Exemption, and Do I Qualify?
The Homestead Exemption can reduce the taxable value of a primary Florida residence by up to $50,000 and cap annual tax increases. To qualify, buyers must occupy the home as their permanent residence by January 1 and apply by March 1 of the following year.
4. Will My Taxes Change After I Buy?
Yes, potentially. A home’s assessed value resets after a change in ownership, which may cause the taxes to increase. It’s important to explain that the seller’s current tax bill may not reflect what the buyer will pay in the future.
Pro Tip: If a buyer has detailed or technical questions, bring in your trusted title partner or recommend they speak to the local property appraiser’s office.