Property Taxes 101

Property taxes are just one of the many types of taxes that Americans have to pay. Other common taxes include:

  • Income taxes
  • Sales taxes
  • Payroll taxes

States also collect taxes, and some states have no personal income tax at all. This means that their residents only have to pay property taxes and other state-level taxes. If you’re thinking of moving to a state with no income tax, keep in mind that property taxes can be very high.

For example, homeowners in New Jersey pay some of the highest property taxes in the country. The bottom line is that it’s important to stay on top of your property tax payments.

What are Property Taxes?

The implementation of property taxes is one of the most common ways that state and local governments generate revenue. In most cases, property taxes are based on the value of your property. Property values can be determined by a professional appraiser, and tax rates are set by the government.

The amount of property tax you pay each year is generally divided into two categories: real estate taxes and personal property taxes. Real estate taxes are levied on the value of your home, land, or other structures on your property.

Personal property taxes are levied on the value of your belongings, such as:

  • Cars
  • Boats
  • RVs
  • Jewelry

In some states, property taxes are paid in quarterly installments, while in others they are paid annually.

What Impacts Property Taxes

The impacts of property taxes can influence the amount you pay annually for the property taxes.

How Often Do You Pay Property Taxes?

In Palm Beach County, the tax bills are mailed out in November and are payable by March 31st of the following year.

Property Tax Rates in the Other States

Property taxes in other states will vary for the following reasons:

  • The type of property being taxed (e.g. commercial, residential)
  • The assessed the value of the property
  • The tax rate is set by the state or local government

In general, states with higher property values will have higher tax rates. Texas has some of the highest property taxes in the nation, while Louisiana has some of the lowest.

Which States Don’t Have Property Taxes?

In the United States, every state has a minimum property tax. If you’re looking for a place to retire that has low taxes, these are some of the best states to consider. The following states have low property taxes:

  • Alaska
  • Hawaii
  • Alabama
  • West Virginia
  • Louisana
  • Wyoming
  • Delaware

What is a Homestead Exemption?

Homestead exemption is a deduction that allows homeowners to reduce the taxable value of their home by up to $50,000. The exemption can save homeowners hundreds of dollars each year in taxes.

How Does Homestead Exemption Work?

To qualify for homestead exemption, you must own and occupy your home as your primary residence as of January 1st. You must also file an application with your county’s appraisal district.

What Are the Benefits of Homestead Exemption?

The main benefit of the homestead exemption is that it lowers your property taxes. This can save you hundreds of dollars each year, which can be used to pay for other expenses such as home repairs or upgrades.

How Do I Apply for Homestead Exemption?

To apply for homestead exemption, you will need to submit an application to your county’s appraisal district. The application must be submitted by March 1st and must include supporting documentation, such as a deed or mortgage statement.

What Is the Difference Between Homestead Exemption and Homestead Credit?

Homestead exemption lowers your property taxes, while homestead credit provides a refund of taxes that were already paid.

Do All States Offer Homestead Exemption?

No, not all states offer homestead exemption. Some states, such as Florida and Texas, have very generous homestead exemption laws, while other states have no homestead exemption at all. If you’re a homeowner in a state with high property taxes, a homestead exemption can save you a significant amount of money each year. Be sure to check.

Property Taxes in Florida

Property Taxes in Florida and How It Plays into Purchasing a Home

Property taxes in Florida are some of the lowest in the nation. The state offers a homestead exemption that lowers your property taxes, while homestead credit provides a refund of taxes that were already paid.

These two programs work together to keep property taxes low for Florida homeowners.

If you’re considering purchasing a home in Florida, be sure to factor in these lower property taxes when budgeting for your new home. In 2021, a person can expect to pay Palm Beach County property taxes of 2.75 mills, or $2.75 per $1,000 of assessed value on their home.

Palm Beach County Property Tax Rates

Palm Beach County property taxes are calculated using your homes:

  • Assessed value
  • Taxable value
  • Local millage rate
  • Ad valorem taxes
  • Non-ad Valorem taxes.

Palm Beach County’s average tax rate is 1.02% of assessed home values—just below the national average of 1.1% and slightly higher than the Florida statewide average of 0.97%. At 1.02%, Palm Beach County homeowners will be responsible for paying an average of $2,679 in property taxes each year.

If you’re considering purchasing a home in Florida, be sure to factor in these lower property taxes when budgeting for your new home.

Dos and Don’ts of Property Taxes

When it comes to property taxes, there are some things to keep in mind:

  • First and foremost, don’t let your property taxes fall behind. If you do, you’ll end up owing a lot of money in interest and penalties.
  • It’s also important to know what your tax bill covers. Your tax bill should include a breakdown of the taxes you owe for each type of tax – county, state, and federal.
  • If you have any questions about your bill, don’t hesitate to contact your local tax office.

They can help you understand what you’re being charged for and why.

  • Another thing to keep in mind is that you may be able to deduct your property taxes on your federal income tax return.
  • Be sure to speak with your tax advisor to see if you qualify.

What Happens If You Don’t Pay Property Taxes?

If you don’t pay your property taxes, the government can seize your home and sell it to recoup the money you owe. Before this happens, you’ll usually get a notice in the mail saying that you’re behind on your payments and need to catch up.

If you don’t take care of the problem, a tax lien will be placed on your home, and the government can eventually foreclose on it. So, if you’re thinking of not paying your property taxes, think again.

Finalize Your Property with Galaxy Title & Escrow

It’s not worth risking your home over something that is relatively easy to take care of. Paying property taxes is just one of the many expenses that come with owning a home, but it’s an important one.

At Galaxy Title and Escrow in Fort Lauderdale, we provide a versatile skill set to help you reach your real estate goals. Our experience and diverse clientele are our calling cards. If you’re looking for a reputable full-service title company, reach out to us today.

Mitchell Issa (Reviewer)Property Taxes 101