Property Taxes
Information about property taxes for new residents of Palm Beach County
If you’re moving to Palm Beach County you’ll want to know more about local property taxes and how they affect you.
Assessed Values
After every purchase of real property, the county’s Property Appraiser will normally reassess the market value and taxable value of the property. Generally, the methodology used differs from that used by a real estate appraiser, and also differs from the “market value” estimated by a real estate salesperson. You may find your home’s assessment is lower than these other estimates. If you feel the assessed value is too high, you should contact the property appraiser’s office to find out what the procedures, and time limits, are for appealing the assessment.
Save Our Homes Cap
If you own your principal residence and it qualifies and is filed as your homestead, increases to your property’s assessed value are capped to a maximum of 3% per year (or the inflation rate if lower). Given the recent increases in property values, this can save a lot of money. On the other hand, it can make moving to another home (even a less expensive home) more expensive, since the new home is reassessed. For example, if you purchased a home at $100,000 and now sell it for $200,000, then move to a $150,000 home, you may still face higher property taxes.
However, in 2008 voters ratified a constitutional amendment that provides for Portability. This allows some buyers to transfer their savings from their previous Florida residence. Check with your county’s Property Appraiser or Tax Collector for information on portability and how to apply.
Deductions/Exemptions
If your home is your principal residence, you may be entitled to claim certain deductions - reducing your assessed value to a lower taxable value. The biggest and most used deduction is the $25,000 homestead exemption, but other deductions exist - contact your county Tax Collector’s office to find out what you may qualify for.
Also, in 2008, this deduction has been doubled to $50,000.
You can file for an exemption at any time, but after March 1 they do not take effect until the next year. January and February are the busiest times for the tax collector’s office.
Millage Rates
Each taxing authority assesses a “millage rate” on taxable property, and in addition there may be certain non-ad-valorem (not based on the property’s value) taxes. To determine the various taxes on a particular property, contact your local authorities, or visit the related websites. In general, to estimate taxes on a property you are planning to buy, about 2% of its price per year will give a ballpark figure.
Payment of Taxes
In Palm Beach County, property taxes for the calendar year are paid in arrears, meaning at the end of the year. However, a discount is offered for early payment. Bills are mailed at the beginning of November, and most residents (or lenders, if funds for taxes are escrowed) pay their taxes during that month to take advantage of the discount.
Closing Procedures and Pro-rations
If you purchase a property between January and October, your closing agent will usually estimate the taxes that will be due in November, pro-rate them, and have the seller give you a credit for the taxes from the beginning of the year up until they sell the property.
If you purchase at the end of the year, the taxes will typically have been paid by the seller prior to closing, or the closing agent will handle the payment. The sellers will pay for their portion, and you will pay for the remaining time until the end of the year.
Note that since valuations don’t usually come out until August, you should be careful to monitor the estimates to ensure they are accurate. Particularly if you are purchasing a newly built home, since the parcel may have been assessed the prior year based only on the land value.
Please contact your county’s property appraiser and/or tax collector for the most up to date information on property taxes and exemptions.