Know Your Future Real Estate Taxes Before You Buy!
Every year, your property is re-assessed on January 1st, and the dollar amount will be different than the previous years assessed value. That is a fact.
When you buy a home, you inherit the previous owner’s taxes, until you get re-assessed on January 1st of the next year. On November 1st of the next year, your new tax amount is due. So if you buy a home in 2012, your real estate taxes will not change until November 1st, 2013. If you get an FHA or VA loan, or if you escrow for taxes and insurance, December of the following year is when your monthly payment changes.
How Much Will The Real Estate Taxes Be? 3 EZ Steps to Estimate Your Future Real Estate Taxes
Click on “Homebuyer’s Tax Estimator” on the right side of the window below
Enter the desired purchase price. Click the homestead box (if applicable) and any other applicable deduction.
Scroll down and you will see your estimated future taxes.
For a more accurate calculation, simply do purchase price times 85% minus 50,000 (only if you plan to file for homestead exemption) divided by 1,000, times the mileage rate for the city you want to live in.
That number will be your future ESTIMATED real estate taxes. As long as you file for homestead, your Assessed Value will not increase more than 3% per year.
Taxes for current owners with homestead exemption will have a cap increase of 3%. Investment property will cap out at 10%. And new homeowners will be re-assessed according to the new purchase price (except for foreclosures and short sales---re-assessed at market value)
How Much Will My Monthly Payment Change? Only for VA or FHA
A portion of your mortgage monthly payment goes towards the taxes that are going to be paid in November. So when the mortgage company goes to pay the taxes, they will be either short, on target, or over with the amount of money they have collected from you.
The shortage or overage will depend on the difference between the new and old real estate taxes. If you are over, they will most likely send you a check for the difference, and your monthly payment will decrease by the difference divided by 12. If you are short, you will have to send them a check to cover the difference, and your monthly payment will increase based on the shortage divided by 12.
Example: New Taxes are $4,800.00
a) Previous Owner taxes were $7,500.00. They will most likely send you a check for $2,700.00, and your monthly payment will decrease by $225.00. You will have to ask your lender to send you the check.
b) Previous Owner taxes were $2,500.00. You must send a check for $2,300.00 and your monthly payment will increase by $192.00. Your lender will ask you for the check.
Do you want to estimate your future taxes? Click below "Homebuyer's Tax Estimator"
#1 REMAX AGENT IN FLORIDA BASED ON CLOSED SALES for July 2010, individuals. See Proof
Filing for Homestead and Other Exemptions
All legal Florida residents are eligible for a Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if they qualify. The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. While a complicated formula is used to explain this -- as the additional $25,000 only applies to the non-schools portion of your tax bill -- the bottom line is that the basic homestead exemption saved a Broward homeowner in 2011 anywhere from $648 to $1,147 (depending upon your city's millage rate) in annual tax savings for all homes with a value of $75,000 or higher.
You are entitled to a Homestead Exemption if, as of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you. By law, January 1 of each year is the date on which permanent residence is determined. You may file for Homestead online, or you may file by visiting our office or at any of our community outreach events held throughout Broward.
The timely filing period for Homestead Exemption for 2012 was March 2, 2011 through March 1, 2012. The absolute deadline to LATE FILE for any 2012 exemption -- if you missed the March 1, 2012 timely filing deadline -- is September 18, 2012. State law (Sec. 196.011(8), Fla. Stat.) does not allow late filing for exemptions after this date, regardless of any good cause reason for missing the late filing deadline.
What You Need When Filing for Homestead
When filing an application you must bring the following items listed below. To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co- owners) must file in person on jointly held property. In the case of a husband/wife ("Tenants by the Entirety") or Joint Tenants with Right of Survivorship ("JTRS"), any one owner may qualify for 100% coverage -- although it is always highly advisable to have all eligible owner-occupants to file.
1. Proof of Ownership: In general, the recorded Deed or Co-op Proprietary Lease must be held in the name(s) of the individuals applying for Homestead. You do not need to bring a copy of the deed or co-op lease if the document has already been recorded in the Official Records of Broward County. If the PROPERTY IS HELD IN A TRUST, WE ALSO NEED EITHER A NOTARIZED CERTIFICATE OF TRUST OR A COMPLETE COPY OF THE TRUST AGREEMENT. Note: Most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.
2. Proof of Permanent Florida Residence -- preferably dated prior to January 1 of the tax year for which you are filing -- is established in the form of: A. FOR ALL APPLICANTS: Florida's Driver's License (or -- for non-drivers only -- a Florida I.D. Card) is REQUIRED. Note: You must surrender to DMV any out-of-state regular driver's license. You MUST also have either of the following: 1. Florida Voter's Registration; or 2. Recorded Declaration of Domicile. B.FOR NON-US CITIZENS, you MUST have the items listed above AND proof of permanent residency, asylum/parolee status (or other "PRUCOL" status).
3. If you or your married spouse have a Homestead Exemption in any other county, state or country (or an equivalent permanent residency-based exemption or tax credit, such as New York's "S.T.A.R." exemption) on another property you also currently own, you will NOT be eligible for a homestead in Broward until after you surrender the exemption in that other jurisdiction.
The State-approved application form requests certain information for all owners living on the premises and filing: • Current employers of all owners • Addresses listed on last I.R.S. income tax returns. • Date of each owner's permanent Florida residence. • Date of occupancy for each property owner. • Social Security numbers of all owners filing. • Social Security number of any married spouse of the applicant, even if the spouse is not named in the deed and is not filing).
Note: The amount of the homestead exemption protection granted to an owner residing on a particular property is to be applied against the amount of that person's interest in the property. This provision is limited in that the proportional amount of the homestead exemption allowed any person shall not exceed the proportionate assessed valuation based on the interest owned by the person. For example, assuming a property valued at $40,000, with the residing owner's interest in the property being $20,000, then $20,000 of the homestead exemption is all that can be applied to that property. If there are multiple owners, all as joint tenants with rights of survivorship, the owner living at property filing receives the full exemption.
Widows, widowers, permanently disabled persons, and qualified senior citizens on fixed-incomes are entitled to additional tax-saving exemptions. With the exception of the $5,000 Veteran's Disability Exemption and the Historic Property Exemption, a Homestead Exemption is required by law as a pre-condition for obtaining any of the following additional exemptions:
$500 Disability Exemption: One letter or certificate from a Florida-licensed physician stating that you are totally and permanently disabled.
$500 Widows/Widower's Exemption: Spouse's death certificate, newspaper clipping or memorial card.
Additional $25,000 Low-Income Senior Exemption: Filing period is January 1 through March 1 of each year. Applicant must be 65 years of age or older as of January 1 (even if other household members are under age 65) and the total household adjusted gross income for last year (2011) must not exceed $27,030. This exemption must be applied for annually (and the annual renewal process is fast and easy). For additional information, please click here.
$5,000 Veteran's Disability Exemption: A copy of your Certificate of Disability from the U.S. Government or the U.S. Department of Veterans Affairs (or its predecessor agency). The disability must be military service-related and incurred during a period of wartime service or by misfortune. The service-related disability must be to a degree of at least 10% before January 1. The surviving spouse of an eligible disabled veteran may also claim this exemption, provided he/she has not remarried. Note: The veteran must be a permanent resident of the State of Florida. For surviving spouses, the deceased veteran must have been a permanent resident of Florida at the time of his/her death.
Full Exemption for Veteran's Service-Connected Total and Permanent Disability: A certificate from the US Government or US Department of Veterans Affairs. Any honorably discharged veteran with a service-connected total and permanent disability, surviving spouses of qualifying veterans and spouses of Florida resident veterans who died from service- connected causes while on active duty as a member of the US Armed forces are entitled to an exemption on real estate used and owned as a homestead.
Deployed Military Exemption: US military documentation which clearly shows the applicant's dates of active duty military service deployed outside the United States during the immediate prior year in support of one of the designated military operations (Operation Enduring Freedom, Operation Iraqi Freedom, Operation New Dawn, Operation Noble Eagle or Operation Odyssey Dawn). This exemption requires the holder to submit new supporting documentation each year to retain these valuable savings. This exemption grants total exemption to an additional percentage of your assessed value, based upon the percent of the prior year you were deployed overseas in support of one of the specified military operations.
Additional Exemption for Combat-Wounded Florida Disabled Veterans: This exemption provides a additional discount from the amount of property taxes on the homestead of a partially or totally permanently disabled veteran, age 65 or older as of January 1, who was a Florida resident at the time of entering military service, and whose disability was combat- related. Under this new law, a veteran will receive a total exemption from property taxes equal to the percentage of combat-related disability (example: a 60% combat-related disability would exempt 60% of the total value of the homesteaded residence from ad valorem property taxes). Please provide us with documented proof your disability was combat related (i.e., copy of Purple Heart Medal award paperwork), a certificate from the US Government or US Department of Veterans Affairs attesting to the percentage of your permanent disability, and documentary proof you were a Florida resident when you entered the military. Note: Florida law does not provide for a surviving spouse exemption in this category.
$500 Disability Exemption for Blind Persons: A certificate from the Division of Blind Services of the Department of Education or the United States Department of Veterans Affairs certifying the applicant to be blind is required.
Full Exemption for Totally and Permanently Disabled Persons: Certificates from two licensed doctors of this state or a certificate from the US Department of Veterans Affairs. To be entitled to this exemption, you must be a (1) quadriplegic or (2) paraplegic, hemiplegic or other totally and permanently disabled person who must use a wheelchair for mobility or who is legally blind. For persons entitled to this exemption under number two (2) above, the prior year (2011) gross income of all persons residing in or upon the homestead shall not exceed $26,350. This amount is adjusted annually and a statement of gross income must accompany the application.
"Granny Flat" Exemption - Taxpayers who build additions onto an existing Homestead or perform extensive renovations to an existing Homestead to provide living quarters for a parent or grandparent may be entitled to a special exemption equal to the amount of the new construction (up to 20% of the homestead value). To be eligible, the property owner must have a Homestead Exemption on the property where the parent or grandparent quarters are constructed. The construction or reconstruction must be properly permitted and comply with all local land development regulations. Copies of all permits, certificate of occupancy, and plans must be submitted to the Property Appraiser’s Office. Construction or reconstruction must be substantially complete before January 1st of the year in which the reduction is requested. Application must be filed with the Property Appraiser’s Office annually on or before March 1st of each year. The occupant(s) of the quarters must be a parent or grandparent. The occupant(s) must be at least 62 years of age by January 1st of the year in which the reduction is requested. The occupant(s) must permanently reside on the property on or before January 1st. of the year in which the reduction is requested. The occupant(s) cannot receive any benefits requiring a declaration of permanent residency on any other property in any other County or State. The Broward County Property Appraiser’s Office will conduct a site visit annually upon review and prior to approval of the application for assessment reduction. You may download the Granny Flat application here (PDF format).
Historic Property Exemption - Is your property on the National or Florida Registers of Historic Properties? Then, under certain circumstance, you may be entitled to some special exemptions related to your assessed value. Click here (for historic properties in general) and here (for historic properties open to the public) to read the applicable statutes. Click here to download the historic property exemption application form (PDF format).
Non-Profit, Religious, Educational & Governmental Exemptions - Click here to learn more.
Homestead Exemptions are NOT Transferable ... But You Can Move Your Savings with Portability AND a new Homestead Application. Homestead Exemption does not transfer from property to property. If you had this exemption last year on another property and moved, you must file a new application for your new residence. Notify the Property Appraiser to cancel the exemptions on your former home. The sellers' exemptions will not carry over beyond the year of the sale: you MUST apply for your own exemptions.