Florida Property Tax: Understand How It Works

When purchasing a property in the United States, many Brazilians face questions about fixed costs and legal obligations. One of the most important—and often overlooked—is property tax in Florida.

With specific rules, benefits for residents, and a competitive tax rate, the state's tax system is considered more flexible than in much of the country. Below, we explain how it works and present updated simulations to facilitate understanding.

Rate below the national average

The average effective property tax rate in Florida is 0.82%, lower than the US average of 0.90%. This means that, proportionally, taxpayers in Florida pay less than in states like New Jersey (2.23%) or Illinois (2.05%).

To illustrate: If you purchase a home with a market value of $300,000, the average annual tax bill would be approximately $2,460—although this amount varies from county to county, depending on the local millage rate and applicable exemptions.

How tax is calculated

The tax is levied on the property's assessed value , which may be lower than market value. This assessed value is calculated by the county property appraiser based on real estate market data and applies the exemptions provided by law.

Homestead Exemption

If you live in the property permanently, you can claim the homestead exemption , which reduces the taxable value and protects the property from excessive tax increases.

Practical example: Property with an assessed value of US$250,000 :

• $25,000 exempt from all taxes (first homestead tier)

• Next $25,000 (from $25,000 to $50,000) is taxable

• Additional $25,000 (from $50,000 to $75,000) exempt from city taxes only (not exempt from school taxes)

• Remaining US$175,000 is fully taxable

With the exemption applied, the final effectively taxable amount is reduced by up to US$50,000 , generating significant savings.

Increase Limitation: Save Our Homes

Homeowners who reside in the property are also protected by the Save Our Homes (SOH) rule , which limits the annual increase in assessed value to 3% or inflation, whichever is lower .

This means that even if your property's market value increases by 10% in a year, its assessed value for tax purposes cannot increase by more than 3%—a clear advantage in rapidly appreciating markets.

TRIM Notice: Review every year

Every year, property owners receive a TRIM Notice (Truth in Millage) with updated property assessment values and tax projections. If the estimated value is higher than what you believe to be the actual market value, you can appeal to the county within 25 days of receiving it.

How fees work

Taxes are calculated based on the millage rate . Each mill represents $1 of tax for every $1,000 of taxable value . Rates are set by local agencies such as counties, municipalities, school districts, and special services agencies.

For example, a rate of 16 mils means $16 in tax for every $1,000 of taxable value . A property with a taxable value of $200,000 would have a tax liability of $3,200 per year , before exemptions are applied.

Property taxes in Florida are relatively low, especially when compared to states like New York, California, or Illinois. With mechanisms like the homestead exemption and Save Our Homes, the system offers tax predictability and protection for resident taxpayers.

For those planning to invest or live in Florida , understanding this structure is essential for making sound financial decisions. And to ensure you're taking full advantage of the benefits, it's worth enlisting the support of a local real estate expert.