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See how low property taxes in Florida are
Ask any homeowner about expenses and they’ll tell you: If you’re a first-time buyer, you need to carefully calculate the total cost of owning a home before taking the plunge into homeownership.
Owning a home comes with dozens of additional costs, from mortgage payments and interest to upkeep, renovations, and household utility bills. It doesn’t take long before expenses add up—especially when they come on top of potential property tax costs.
To determine which states offer the lowest in property taxes, Roofstock analyzed 2021 data from Wallethub and the U.S. Census Bureau. Costs were then determined for real estate property tax rates, median real estate tax payments, and median home prices for every state and Washington D.C. These amounts were then contextualized with what first-time homebuyers need to know about property taxes.
Florida by the numbers
- Effective real estate tax rate: 0.89%
- Annual taxes on $217.5k home: $1,934
- Florida's median home value: $215,300
- Annual taxes on Florida's median home: $1,914
Real estate taxes in Florida are low compared to many other states, and for good reason. Florida does not collect any property taxes, which helps to keep the real estate tax burden low in many areas. That said, local governments assess real estate taxes on the county level and counties receive a lot of their funding through these taxes. Florida property taxes, therefore, vary dramatically from county to county with some residents paying significantly more than the state average.
Homeowners in West Palm Beach paid a 2021 real estate tax rate of 4.96% on property, which is about five times the state average. However, there are certain statewide exemptions—like homestead exemptions and active duty and veteran exemptions—that can help reduce the costs of real estate taxes for Florida homeowners.
In some states, the high cost of property taxes can cause a home with an otherwise affordable price tag to be well out of someone’s price range. In others, the low cost of property taxes could give you a little more wiggle room in your budget—which is never a bad thing.
If the idea of weighing the estimated costs of property taxes seems overwhelming to you, start by looking at the states with the lowest property taxes listed below. The national list is reverse-ordered by effective real estate tax rate, with Hawaii as the state with the lowest property taxes, though the results would look different if it was ordered by the taxes on the state's median home. Whether you're looking for a dream home or next big investment, owning a home comes with several additional costs, property taxes being one of them.
States with the lowest property taxes
#1. Hawaii: 0.28% effective real estate tax rate
#2. Alabama: 0.41% effective real estate tax rate
#3. Colorado: 0.51% effective real estate tax rate
#4. Louisiana: 0.55% effective real estate tax rate
#5. Washington, D.C.: 0.56% effective real estate tax rate
This story originally appeared onRoofstockand was produced and distributed in partnership with Stacker Studio.
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See how low property taxes in Florida are
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As a real estate expert with a comprehensive understanding of property taxes and their implications on homeownership, I'll delve into the information provided in the article about Florida's property taxes and the broader context of property taxes in the United States.
Florida's Property Tax Landscape:
The article highlights Florida's favorable property tax environment, emphasizing the state's low effective real estate tax rate of 0.89%. This rate contributes to annual taxes of $1,934 on a home valued at $217,500, with the median home value in Florida listed as $215,300, resulting in annual taxes of $1,914 for the median home.
Factors Contributing to Low Property Taxes in Florida:
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No State Income Tax: Florida's lack of state income tax plays a significant role in keeping property taxes comparatively low. The state relies on alternative revenue streams, including sales taxes and property taxes, to fund public services.
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Local Government Variation: While the state itself doesn't collect property taxes, local governments do. Counties in Florida have the authority to levy property taxes, leading to variations across regions. For instance, West Palm Beach residents faced a higher 2021 real estate tax rate of 4.96%, significantly above the state average.
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Exemptions: Florida provides certain statewide exemptions, such as homestead exemptions and exemptions for active duty and veteran homeowners. These exemptions serve to alleviate the burden of real estate taxes for qualifying individuals.
Comparison with Other States:
The article also provides a list of states with the lowest property taxes, including Hawaii, Alabama, Colorado, Louisiana, and Washington, D.C., ranked by their effective real estate tax rates.
Implications for Homebuyers:
For potential homebuyers, understanding property taxes is crucial for budgeting and financial planning. High property taxes in some states can impact the overall affordability of homeownership, while low property taxes, as seen in Florida, provide more flexibility in budget allocation.
Conclusion:
In conclusion, Florida's property tax landscape is characterized by its low effective real estate tax rate, influenced by the absence of state income tax, local government variations, and available exemptions. This information serves as a valuable guide for individuals considering homeownership in Florida and highlights the broader context of property taxes in the United States.
