Naples Florida Real Estate Taxes
I received a question today, that my answer could be informative for potential purchasers of Naples FL real estate.
I have another question for you. A friend of mine living in Florida, told me the way to figure out how much you’ll be paying in taxes is, it’s $12.00 per $1,000 in Florida. Is this true for all of Florida or just certain parts? Also how much is it per $1,000 in Naples?
First, let’s look at how real estate taxes are calculated.
Taxable value x tax rate = annual real estate taxes.
Every year all the county appraisers throughout the state of Florida reassess properties as of January 1st, based upon market activity in the preceding calendar year. The reassessment gives us what is termed market assessed value. The market assessed value can be reduced by the Save Our Homes exemption (homesteaded properties can only increase a maximum of 3% of the previous year’s assessed value) and the homestead exemption. The resulting figure is called taxable assessed value.
There is no overall Florida real estate tax rate. Each county determines their tax rate based upon what is budgeted to run the county and/or city governments, schools, fire districts, etc. Within each county there are what is called Millage Areas or tax rate areas. In Collier County the Naples area there are over 280 such areas. The range of tax rates runs from a low of $10.8694 per $1,000 up to a maximum of $16.1439 per $1,000. The average for the Naples area is $12.48626 per $1,000 and median is $12.4374.
Generally, we use the formula of 80% of the purchase price x 1.25% or 1% of the purchase price. For example, a purchase price of $200,000 would yield $2,000 per year for real estate taxes annually.
Due to how the assessed value works, it becomes very important for you as potential purchaser of real estate to work with a real estate professional that can use available information to inform you of what real estate taxes could be on a property given the existing tax rate as well as determining what the appropriate taxable assessed value for the proposed purchase.
Please be aware that the tax rates and method of estimating real estate taxes will be significantly different if you are considering purchasing in the Bonita Springs FL real estate or Estero FL real estate markets.
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