By Andy B. Cooper — Florida Licensed Real Estate Broker, SFR Certified · Cabana West Real Estate
November is property tax month in Florida. Bills go out, and homeowners who pay early can save real money through a discount written into state law. Many new owners don't know the discount exists, or assume their mortgage company takes care of everything. Here's how the calendar works, what the discount is worth and what to check on your first bill.
When Florida property taxes are due
Under section 197.333, Florida Statutes, taxes are due and payable on November 1 of each year, or as soon after that as the certified tax roll is received by the tax collector. They become delinquent on April 1 of the following year, or 60 days after the original tax notice is mailed, whichever is later.
In other words, you have from November through March to pay, and paying earlier is rewarded.
The early-payment discount schedule
Section 197.162 sets the discounts for paying before delinquency:
- 4 percent in November, or within 30 days after the original tax notice is sent.
- 3 percent in December.
- 2 percent in January.
- 1 percent in February.
- 0 percent in March.
On a $10,000 tax bill, paying in November instead of March saves $400. For many households that's the easiest 4 percent they'll earn all year.
Where to pay in Palm Beach County
The Palm Beach County Tax Collector collects property taxes for the county. You can look up your bill, pay online and review payment options on its website. Always pay through the official site or office, and be wary of letters or emails that imitate tax notices.
If your taxes are paid through escrow
Many homeowners with a mortgage pay taxes through an escrow account. Each month part of your payment goes into escrow, and the servicer pays the tax bill. Most servicers pay in November to take the 4 percent discount, but it's worth confirming. Check your escrow statement in December to see when and how much was paid. If the bill came to you anyway, contact your servicer before paying it yourself so the tax isn't paid twice.
Your first tax bill after buying
This is where new owners get surprised. The seller's bill reflected the seller's assessed value, which may have been limited for years by the Save Our Homes cap. After a sale, the property is reassessed at just value as of January 1 of the year following the change of ownership, under section 193.155. Your first full bill as owner can be much higher than the one you saw in the listing.
When we help buyers, we estimate taxes from the purchase price and the local millage rate rather than from the seller's bill. Our mortgage calculator lets you enter a property tax rate to see its effect on your monthly payment.
Homestead and your bill
If you live in the home as your permanent residence, file for homestead by March 1. It reduces your taxable value and caps future increases in assessed value. Our homestead guide explains how and when to apply. If you bought this year, your homestead will apply to next year's bill, not this one.
Reading your tax notice
Your bill lists the taxing authorities that make up your total: county, school board, city or village, water management district and special districts, each with its own millage rate. Non-ad valorem assessments, such as solid waste or special district charges, appear as separate items. If something looks wrong, contact the Property Appraiser about value or exemptions and the Tax Collector about payment.
Each summer, the Property Appraiser mails the Truth in Millage (TRIM) notice with your proposed taxes and hearing dates. That's the time to raise questions about value, before the final bill is set. You can see millage rates on the Property Appraiser's TRIM page.
Budgeting tips for homeowners
- If you don't escrow, set aside a monthly amount so November isn't painful.
- Put a reminder in your calendar for early November.
- Keep your payment confirmation with your tax records.
- Check each year that your exemptions still appear on the bill.
FAQ
Q: When are property taxes due in Florida?
They are due November 1, or as soon after as the certified roll is received, and become delinquent April 1 of the following year or 60 days after the original notice is mailed, whichever is later.
Q: How much is the discount for paying Florida property taxes early?
4 percent in November, 3 percent in December, 2 percent in January, 1 percent in February and none in March, under section 197.162.
Q: Why is my first tax bill higher than the seller's?
The property is reassessed at just value on January 1 after a sale, so the seller's capped assessed value and exemptions don't carry over.
Q: Does my mortgage company pay my property taxes?
If you have an escrow account, the servicer usually pays the bill from it. Confirm the payment date on your escrow statement.
Andy B. Cooper is a Florida Licensed Real Estate Broker, SFR Certified, with Cabana West Real Estate, serving Wellington, Palm Beach County, and all of Florida. Cabana West is a bilingual (English/Spanish) brokerage.
Disclaimer: This article is general educational information, not legal, tax, insurance or financial advice. Laws and requirements change. Confirm details with the official sources linked above and with a licensed professional before acting.