Property Tax Question

[Shabby]

Follow me on this:
Here in Seattle my property taxes are 1.23% on a taxable home value of $611k or $7512 annually.
The house is actually worth $892k, so my actual property tax rate is 0.84%

I am budgeting for a new primary home in Florida, likely Delray Beach area.
It appears that property tax rates are 1.31%.
My question is, what home value will they use for this?
The price I pay for the house? The price they feel the house is worth?

 

[pb4uski]

In our area of Florida they use assessed values for property taxes. In theory, the assessed values are supposed to be fair value, but in our area the value is routinely significantly lower than recent transaction prices.

I think you can get a real good idea on what your property taxes will be by looking up property taxes online for houses similar to what you plan to buy.. . just be careful to adjust for any homesteading adjustments.

FWIW, our appraisal for last year was ~83% of what we paid earlier in the year, and the tax was ~1.4% of what we paid... so 1.3% doesn't sound out of line but we are on the other side of the state.

 

[Texas Proud]

Here in Texas if the assessed value of the property if higher than what you paid you can protest and get it reduced to what you paid....

 

[Shabby]

be careful to adjust for any homesteading adjustments.

I've heard that term, but what is it?

 

[CRLLS]

Here in Texas if the assessed value of the property if higher than what you paid you can protest and get it reduced to what you paid....

And likewise, if you pay more than the previous owner's assessed value here in IL, then the value will be raised. You would be hard pressed to argue against the assessor setting that value to your home.

 

[ShokWaveRider]

Where we at in FLA we have a 50k homestead Exemption (Adjustment) n a PRIMARY home. So if your home is assessed at $500k you pay taxes on $450k. There are some exceptions for School Taxes and if you are 65 or older you get an additional exemption.

 

[pb4uski]

I've heard that term, but what is it?

Where we at in FLA we have a 50k homestead Exemption (Adjustment) n a PRIMARY home. So if your home is assessed at $500k you pay taxes on $450k. There are some exceptions for School Taxes and if you are 65 or older you get an additional exemption.

What ShokWaveRider said. Plus, IIRC if you are homesteaded there are also limits on how much your assessment and/or property taxes can increase in a given year.... but I don't know much about them but if the property you are looking at is homesteaded and these come into play for the seller then what you pay may be quite higher than what the seller is currently paying.

 

[CRLLS]

In IL, assessed value is roughly 1/3 the fair market value. The "Homestead Exemption" is given to owner-occupied homes. It gives a small break to the homeowner (about 6K in assessed value) vs a landlord on the same property. There is also a senior homestead exemption which also reduces the assessed value by another 4K. There is no protection against increasing assessments or taxes in upcoming years. There are Senior freezes and Senior deferrals, but those are different beasts and are means tested.

 

[Texas Proud]

And likewise, if you pay more than the previous owner's assessed value here in IL, then the value will be raised. You would be hard pressed to argue against the assessor setting that value to your home.

Actually in Texas they do not raise it to the purchase price.... they use that to adjust everybody for the next year, but for some reason the price you paid is not what is used if it is over assessed value...

 

[ShokWaveRider]

Remember Florida Taxes RE taxes are a little higher than others, not as bad as Texas but still a little high. We have no State Income Tax and for the most part Sales tax is acceptable (6.5%, but we buy most things on line so it does not affect us that much, yes even the BIG stuff).

My current Tax percentage is 1.49% So if your assessed Value is $860k RE Tax is around $12.8K

 

[pb4uski]

It might be more helpful and relevant to the OP if we focus on Florida.

 

[hopeisnotaplan]

Follow me on this:

Here in Seattle my property taxes are 1.23% on a taxable home value of $611k or $7512 annually.

The house is actually worth $892k, so my actual property tax rate is 0.84%



I am budgeting for a new primary home in Florida, likely Delray Beach area.

It appears that property tax rates are 1.31%.

My question is, what home value will they use for this?

The price I pay for the house? The price they feel the house is worth?

The assessed value of my home in SW Florida is roughly 78% of the actual value. So, similar to your situation now. I’m basing the actual value on known sales of like property in my neighborhood very recently. So it’s an estimate. Also, as a Florida resident you would get a homestead deduction off the assessed value. (I don’t, but you said yours would be a primary).

 

[meierlde]

Remember Florida Taxes RE taxes are a little higher than others, not as bad as Texas but still a little high. We have no State Income Tax and for the most part Sales tax is acceptable (6.5%, but we buy most things on line so it does not affect us that much, yes even the BIG stuff).

My current Tax percentage is 1.49% So if your assessed Value is $860k RE Tax is around $12.8K

Note that in Texas you can somewhat control property taxes by staying outside incorporated areas. For example because I live in unincorporated areas i pay 1.55% but if I lived in the nearby city I would pay 2.05% or so.
Plus you can sometimes compare school district taxes. (I suspect the same thing applies in Florida that unincorporated land pays lower property taxes than land inside incorporated areas) (Now the property tax savings might be made up by the costs to provide services the city provides)

 

[MissMolly]

In Kentucky, the first year the tax bill is based on whatever the property had previously been assessed at (they always use the value as 01/01/XX of the year) . The 2nd year it is based on the purchase price. However, if a reassessment occurs after purchase, then it is based on the reassessed amount. We also have Homestead exemptions for folks over 65.

 

[ShokWaveRider]

The assessed value of my home in SW Florida is roughly 78% of the actual value. So, similar to your situation now. I’m basing the actual value on known sales of like property in my neighborhood very recently. So it’s an estimate. Also, as a Florida resident you would get a homestead deduction off the assessed value. (I don’t, but you said yours would be a primary).

Mine in NE Florida is 46% of Actual Value because of homestead limitations.

 

[Bamaman]

My best friend lives in University Park in North Dallas. When his property taxes hit $50k, he sold and moved into a luxury apartment.

Taxes in Florida are also very high. You often also have any high HOA fees. And homeowners insurance is another major expense.

But neither state has any personal property taxes. They will get you coming, or going however.

 

[socca]

I am budgeting for a new primary home in Florida, likely Delray Beach area.
It appears that property tax rates are 1.31%.
My question is, what home value will they use for this? The price I pay for the house? The price they feel the house is worth?

Learn how to use the Palm Beach County gov't real estate related websites. You'll have a huge strategic advantage as a buyer if you do. In addition, you'll find answers to questions like the one you asked.

 

[Sunset]

My best friend lives in University Park in North Dallas. When his property taxes hit $50k, he sold and moved into a luxury apartment.

Taxes in Florida are also very high. You often also have any high HOA fees. And homeowners insurance is another major expense.

But neither state has any personal property taxes. They will get you coming, or going however.

FL property tax is cheap compared to IL (the highest or second highest property tax in the country)

 

[Danmar]

RE taxes in Arizona quite low-about .5% of market.