If you own property in the Florida, local governments have the right under the Florida Constitution to charge "ad valorem taxes" (taxes based on property value), which are the largest source of community funding. Every year, on the first of January, property taxes are levied by your local tax authority. The property tax is based on the market value of the home, the current property tax rate (millage rate) and any assessment limitations or exemptions available in your jurisdiction.
Look up the millage rate. The millage rate is the rate at which properties are taxed and it is set by your local taxing authority. Contact your local county assessor in order to determine your millage rate. For the purpose of this example, assume the local millage rate is .5 percent.
Determine the market value of the home. This is the current value of the home based on local property values. You can ask your real estate agent or hire an appraiser for an estimate. Assume your property is valued at $500,000.
Determine any assessment limitations for your property. Contact your local tax authority for information on the assessment limitations available to you and your property. For instance, one common assessment limitation for Floridians is referred to as the Save Our Homes assessment. The purpose of the limitations is to reduce the assessed property value, which has the affect of lowering your property taxes. Assume your assessment limitition is $100,000.
Calculate the assessed value of the property. Subtract the assessment limitation from the market value of the property. The answer for this example is $500,000 minus $100,000 or $400,000.
Calculate the taxable value. Subtract any applicable exemptions, i.e. homestead, from the assessed value calculated in the step above. Assume you have a homestead exemption of $100,000. For this example the answer is $400,000 minus $100,000 or $300,000.
Calculate the property taxes for your property. Multiply the taxable value by the millage rate. In this example, the answer is $300,000 multiplied by .005 percent or $1,500.