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.
What it is
Property tax is the yearly tax your county charges based on your home's assessed value. It funds schools, roads, and local services.
Lenders often collect it monthly through escrow and pay it for you.
Florida notes
Florida has no state income tax, but property taxes still apply, and a homestead exemption can lower yours. Rates vary by county.
We build property taxes into your payment estimate. Reach out and we will show your true monthly cost.