When purchasing a luxury home in South Florida, property taxes are something you should research and factor into your purchase costs. These taxes are determined by the local governments and the following is an explanation of each item they consider.

• • Property Tax Rate: Florida's property tax rates are typically expressed as millage rates, which represent the amount per $1,000 of assessed property value. The rates vary by county and municipality but generally range from 0.8% to 2% of the property's assessed value.
  • Assessed Value: The assessed value is determined by the county property appraiser and may differ from the market value. It takes into account factors like property size, location, and improvements. In Florida, there are also homestead exemptions that can reduce the assessed value for primary residences.
  • Homestead Exemption: Florida offers a homestead exemption of up to $50,000 for primary residences, which can significantly reduce the taxable value of a property. This exemption is particularly beneficial for luxury homeowners using the property as their primary residence.
  • Additional Taxes and Fees: In addition to the basic property tax, some areas may have additional taxes or fees for things like schools, utilities, or special districts, which are included in the overall property tax bill.
  • Save Our Homes Cap: Florida has a "Save Our Homes" amendment that limits the annual increase in assessed value for homesteaded properties to 3% or the Consumer Price Index, whichever is lower. This cap helps to mitigate increases in property taxes due to rising property values.
  • Because property tax rates and assessments can vary significantly by location and the specific details of the property, it’s essential for prospective buyers or homeowners to consult with a local tax advisor or the county property appraiser’s office for the most accurate and up-to-date information regarding property taxes for luxury homes in a specific area of Florida.