What Is Property Tax?
Property tax is an annual tax assessed on real estate by local taxing authorities. The tax is calculated by multiplying the property's taxable value by the applicable millage rate. In Florida, property taxes fund county government, school districts, cities, water management districts, and special taxing districts such as fire rescue and library systems.
Florida does not impose a state income tax, which makes property tax the most significant revenue source for local government and one of the largest annual expenses for property owners.
How Florida Property Tax Is Calculated
The basic formula is:
Taxable Value × Millage Rate = Annual Property Tax
- Taxable value — The property's assessed value minus any exemptions (such as the homestead exemption).
- Millage rate — Expressed in mills (one mill = $1 per $1,000 of taxable value). Each taxing authority sets its own millage rate. Combined rates in Manatee County typically total 17 to 20 mills depending on location.
Example: A home with an assessed value of $350,000 and a $50,000 homestead exemption has a taxable value of $300,000. At a combined millage rate of 18 mills, the annual property tax is $5,400.
Florida Property Tax Calendar
- January 1 — Assessment date. The property appraiser determines value as of this date.
- March 1 — Deadline to file for homestead exemption.
- August — TRIM (Truth in Millage) notices mailed showing proposed assessed value and estimated tax.
- September — Deadline to file Value Adjustment Board petitions to challenge assessed value.
- November 1 — Tax bills mailed by the county tax collector.
- November — Early payment discount of 4% available.
- March 31 — Taxes due without discount. After April 1, taxes become delinquent with interest and penalties.
Property Tax Prorations at Closing
Florida property taxes are paid in arrears (you pay for the current year at the end of the year). At closing, the seller is credited a prorated amount for the portion of the year they owned the property, and this credit goes to the buyer. The buyer then pays the full tax bill when it is due in November. This proration appears on the Closing Disclosure.
Related Terms
- Assessed Value — The value property tax is calculated on
- Florida Homestead Exemption — Reduces taxable value
- Homestead Portability — Transfers assessment savings between properties
- Closing Disclosure — Shows property tax proration at closing
Barnes Walker Property Tax Guidance
Barnes Walker's attorneys handle property tax prorations on every closing and advise clients on exemption eligibility, assessment challenges, and how property taxes interact with estate planning. The firm also publishes in-depth analysis on Florida property tax policy at the Florida Property Tax Hub. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC