Palm Beach County Property Taxes: How to budget for them
April 24, 2016 | Richard Sites
Florida, unlike other states, does not have an income tax. This means all governmental revenue has to come from other sources like property taxes, licenses and fees. When home buyers come to town, whether national or international, one question is sure to come up: What are the property taxes and how are they calculated?
In Palm Beach County, there are about 650,000 parcels of real estate that have to be assessed each year for taxation purposes. Of course on a scale like this, the system is completely automated, unless you officially question the value placed on your property whereby you get a personal appraisal.
So, each year the Property Appraiser’s office assigns an assessed value to your property and your annual tax is based on this amount. Without getting complicated about it, if you are moving here from another location the simplest way to budget for your tax bill is to figure it will be just under 2% of the final purchase price. No matter what the previous owner paid in taxes your bill will be based on the purchase price.
Assume you just paid $X for the property, the appraiser’s office assigns this as the latest assessed value. So, roughly you will be paying $20,000 for every $1 million in purchase price.
The most expensive home on the market right now is on the ocean in Manalapan and it listed at $195 million. The tax bill is just under $1 million per year.
This amount can increase each year unless you are a Florida resident and claim a “homestead exemption”. This exemption removes $50,000 in assessed value and limits the annual increase to only 3%.
In the “go-go” years of the early 2000’s when real estate prices were skyrocketing, tax bills could, an did, make huge jumps causing shock waves among buyers.
So now you know how to budget accordingly. Also, in county clubs like Jonathan’s Landing or Admirals Cove, you will have two other annual bills. They are the HOA and POA. Each community in these clubs had it’s own Homeowners Association which charges a monthly fee and then the entire development pays a Property Owners Association monthly to cover things like security. It is not uncommon for these fees to run several hundred a month each.
If you would like to have a conversation about your move to our area, please contact me directly at 561-762-4073 or use the form below.