Mortgage Glossary
Property Tax
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Property tax is an annual tax levied by local governments based on a property's assessed value, paid through escrow on most mortgages.
What Property Tax means
Florida has no state income tax but relies on property taxes, which average roughly 0.8%–1.1% of value. The Homestead Exemption reduces the taxable value of a primary residence.
Florida example
A Florida homeowner with a $400,000 home and the $50,000 Homestead Exemption is taxed on $350,000. Save Our Homes also caps annual assessment increases at 3% for homesteaded property.
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