Edgewater Ownership Cost Intelligence
Property Taxes, Homestead & Why the Seller’s Tax Bill Can Mislead a Buyer
A buyer’s property tax can be very different from the seller’s. The useful estimate is based on the property’s value after the purchase and the exemptions the new owner may actually qualify for.
Market value (“just value”)
The property appraiser’s estimate of the property’s market value.
Assessed value
The value used for tax purposes before exemptions, after any assessment limits that apply.
Taxable value
The assessed value after exemptions. Property taxes are calculated from this number.
After purchase
Why the buyer’s tax bill can change after purchase
Florida’s Department of Revenue explains that after a change of ownership, the previous owner’s exemptions are removed and the property is reassessed for the following January 1. That is why the buyer’s tax bill can be substantially different from the seller’s.
Use the Miami-Dade Property Appraiser tax estimator
A buyer should estimate taxes using a current expected market value and the exemptions that may actually apply to the buyer—not the seller’s history.
Miami-Dade Property Tax Estimator →
Back to topHomestead
Homestead can reduce taxable value and start Save Our Homes protection
Florida homeowners who use the property as their permanent residence may qualify for Homestead Exemption. The exemption can reduce taxable value by as much as $50,000 and can also make the property eligible for Save Our Homes protection.
Save Our Homes
After the first year, Save Our Homes generally limits annual increases in assessed value for an eligible homestead to 3% or the applicable CPI change, whichever is lower.
Portability
An eligible Florida homeowner may be able to carry some or all of the Save Our Homes benefit from a previous Florida homestead to a new one.
Buyer budgeting
Keep these three tax numbers separate when comparing condos
| Number | Use | Do not confuse it with |
|---|---|---|
| Seller’s current tax bill | Useful as history and for closing prorations | The buyer’s future recurring tax burden |
| Buyer’s estimated post-purchase tax | Use this for the buyer’s ownership budget and condo comparison | The final guaranteed tax bill |
| Buyer’s homestead / portability scenario | Potential exemption and future Save Our Homes benefit | An automatic benefit without eligibility and filing |
Official references
Property-tax sources used for this guide
- Florida Department of Revenue — Property Tax Information for First-Time Florida Homebuyers
- Florida Department of Revenue — Homestead, Save Our Homes and Portability
- Miami-Dade Property Appraiser — Tax Estimator
- Miami-Dade Property Appraiser — Exemptions & Benefits
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