Property Taxes in Tampa Area
Estimating amount of real estate property taxes in Tampa Bay
1. USE TAX ESTIMATORS:
You can go to County Property Appraisers’ websites to estimate the amount of tax you would have to pay on a property:
- Hillsborough County Tax Estimator
- Pasco County Tax Estimator – Go to Records Search > Put in property address > Click on “Estimate Taxes”
2. OR CALCULATE THE ESTIMATE YOURSELF:
STEP 1: Determine taxable value
Taxable Value = Assessed value – Tax exemptions (such as homestead exemption)
For example, if property is assessed at $425,000 and is claimed as homestead, the taxable value would be (roughly)
STEP 2: Determine tax rate
Tax Collector uses millage rate to determine the amount of taxes owed. Millage rate is the amount per $1000. For example, 20 mills equals 2%, or millage rate of 21.6383 equals 2.16383% You can look up current millage rates on County Tax Collectors’ websites:
STEP 3: Estimate amount of tax owed
Amount of ad-valorem taxes owed = Taxable Value x Tax Rate
For example, $375,000 x 2.16383% = $8,114.36
AD VALOREM TAX – property tax based on value
The real estate taxes (property taxes) are based on the value of real property, hence the term “ad valorem tax”, which means “according to value”.
To determine the value, the assessed value of the land and improvements are arrived at separately and then combined to reflect a single assessed value.
Property characteristics such as location, size and condition are looked at when determining the value, as well as construction materials used and year built.
If a home is sold during the year, the sale price becomes a factor for consideration in assessing the value.
Keep in mind that the assessed value may not always conform to the market value. Nevertheless, the market value and the purchase price are the best numbers to use to estimate the amount of property taxes you would have to pay.
HOMESTEAD EXEMPTION – reduces the taxable value
You can claim homestead exemption if you hold the legal title and use the home as a permanent residence.
If you own a few properties, only one can be claimed as homestead.
Claiming the property as a homestead reduces the amount of property taxes owed.
You must reside in the home and have a legal title to the property as of January 1 to be eligible to file for the homestead exemption for that year.
First-time applicants must file an application with the county property appraiser’s office on or before March 1.
Amount of homestead exemption for properties over $75,000 is $50,000 from city and county taxes and $25,000 from school taxes. Rules change every few years, so check with County Appraiser website.
For example, if your homesteaded property’s assessed value is $425,000:
Your base for city and county taxes would be $425,000 – $50,000 = $375,000
Your base for school taxes would be $425,000 – $25,000 = $400,000
CAPS ON HOW MUCH THE ASSESSED VALUE MAY INCREASE
The Save Our Home amendment of Florida Constitution caps how much the assessed value of homesteaded property may increase in a given year.
The assessed value of homesteaded property may increase 3% per year at most.
This benefits homeowners during periods when home values rise and keeps homes affordable.
OTHER THINGS TO KEEP IN MIND
Non-ad valorem taxes may be applicable to a property including special assessments for roads, fire, garbage, lighting, drainage, water, sewer or Community Development District fees (CDDs)
To get an idea of what these non-ad valorem taxes might be, you can go to Tax Collector’s website and search by address:
Property taxes are deductible from Federal income taxes, including CDDs – consult with your CPA for details.