Home Buying in Orlando>Question Details

Kevin, Home Buyer in Los Angeles, CA

is there higher property taxes for non residents of florida?

Asked by Kevin, Los Angeles, CA Sun Mar 22, 2009

i am thinking about purchasing a home in the Orlando area and was told that I would pay higher taxes as a Canadian owner.

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Beware of property taxes for non-residents of Florida!!!

I have been a non-resident Florida homeowner since 2002. Homesteaded Florida residents have had the increases in their property assessments capped at 3% or less since 1996. That means that the identical home or condo next door to you owned by a long time Florida resident may have a tax bill that is 75% less than the one you will be paying.

During the recent real estate bubble in Florida homesteaded resident's assessments only increased around 10 - 12% while non-resident assessments increased, in many cases, more than 100%. Mine went up 135%. Since the bubble burst assessments have been very slow to come back down ... Florida counties are almost totally dependent on property taxes. They will charge you from 1.2% to 2% of your property value every year in taxes. About half the millage rate goes to public schools. Therefore, as a non-resident, you can end up paying way more for Florida public education than the homesteaded residents pay. Florida is the #1 non-resident property tax "hell" in the USA!!!
3 votes Thank Flag Link Thu Apr 22, 2010
That's ridiculous. Every state in the country has laws that are similar!
Flag Thu Mar 27, 2014
Well we answer this question or some variation of it every few weeks on Trulia. Florida, LIKE EVERY OTHER STATE IN THE US, does indeed give property tax breaks to owners who occupy their own home.

What I'd like to address is the misinformation recently added here. It is absolutely not true that assessments have been very slow to come back down. If I look only at the investment properties I own I see decreases in the county tax apprasial of between 27 and 50% in just the last 2 years. (Quick math lesson -- If some value goes up 100% and then down 50% it's back where it started.)

The interesting thing that is happening in Florida now, is that long time Homesteaders are still seeing their property taxes go up by 3 to 5% a year, while investors are seeing their payments fall by 12 to 25%.
2 votes Thank Flag Link Sun Apr 25, 2010
Realtors are trying to create a market that simply is not there, my property again has dropped 10k in value from last year...do not be fooled by greed.
Flag Sun Aug 24, 2014
If Florida wanted to be fair to non-resident home owners they would provide them with the same 3% cap on assessments that they do to homesteaded residents, or they should do away with the Save Our Homes amendment cap. Neither of these things are likely to happen. That said, Florida still has a lot to offer and there are some bargains to be had in real estate. The non-resident buyer just has to be aware of the fact that under current laws a turn-around in the market will cause your assessment to rise accordingly. Presently the portion of the assessment applied to school taxes will rise with the market value. The rise in the portion of the assessment applied to other services is currently capped at 10% per year for non-residents.

I am a non-resident Florida homeowner and a realtor in another state. I love our Florida home which has been our family for 60 years. The recent real estate bubble in Florida was brutal for us from a property tax standpoint. We won't survive another one. I wish that Florida treated non-residents more fairly, but I don't see it happening any time soon.
1 vote Thank Flag Link Wed Jul 20, 2011
Your property taxes are based on a millage rate, if you know the area I can send to you as Orlando Metro is made up of multiple Counties (depends on who you ask) and in those Counties you have Cities; Lake Mary, Maitland, Kissimmee etc… each with a different millage rate.

When looking at property taxes it can be a bit confusing, 3 identical homes side by side could have different taxes listed.

The reason is Florida residents have the Homestead exemption and Save Our Homes, each has a different affect on the property tax rate.

See how property taxes are estimated, http://brokerdave.topproducerwebsite.com/buying-a-home.asp look for the 'Property Taxes' tab on the left side.

Now as for the mortgage if that is your direction it will cost more down, up to 50% as oppose to the 3.5% we see on FHA loans and 20% on conventional loans available in the U.S. citizens, this could be what they meant.

Don’t forget currency exchange rates and other possible rates.

Visit my website for more information and I can send you information on FIRPTA and other provisions for foreign buyers.

Get my complete 'Orlando Foreclosure List' that includes all REO homes for sale in Central Florida!

Broker Dave
GRI, ePRO, Real Estate Broker & Realtor

Visit my Bio located here on Trulia, just scroll your mouse over my picture and left click, also visit my website for innovative tools helping with your real estate decision in the Central Florida area.
Web Reference: http://OrlandoHomeStore.com
1 vote Thank Flag Link Fri Jan 1, 2010
Your property tax is based on the assessed market value of the property. Florida residents can receive exemptions on a portion of the assessed value of the property (for example, the $25,000 homestead exemption for a primary residence can save an owner $300-500 a year), but there is no higher rate for out of state owners per se.
1 vote Thank Flag Link Sun Mar 22, 2009
Kevin,
The property taxes are the same,however if you are not a permanent resident you will not be able to claim Homestead Exemption( $50,0000) .
Also you need to be aware of FIRPTA,Foreign Investment in Real Estate Tax Act
see this link for more on this.
http://www.irs.gov/businesses/small/international/article/0,…
I hope this helps.
Realtor Rick.
0 votes Thank Flag Link Sun Mar 22, 2009
I think we are all working our way around the same thing but coming at it at different tangents.

You will not pay a higher property tax simply by virtue of being Canadian. The base millage rate upon which a property is charged tax at is a fixed number set each year by the government.

You will, however, pay higher taxes if your home is not your primary residence because you won't qualify for the Homestead Exemption or Save our Homes program. I am a Canadian citizen and my family and I live and work in Orlando. We still qualify for the homestead exemption because we can declare our home as our permanent residence, because it is.

Now, how the Canadian GOVERNMENT taxes a US property is going to be interesting to learn; we haven't crossed that bridge yet.
0 votes Thank Flag Link Sun Mar 22, 2009
Kevin,

In fact, you will.

What you are referring to here (that the others are not picking up on) is Florida's "Homestead Exemption". If you have your primary residence in FL, you may qualify for this which will place a cap your property taxes. If you are not a FL resident, you will not qualify for this. It's nothing to do with being Canadian since it applies to all foreign nationals - and also Americans who do not live in FL.

There are other considerations for those outside the U.S. (like mortgages and currency conversion), and you might find our "international page" (link below) helpful. We work with a lot of Canadians - in fact I toured a couple from Toronto just this weekend.

http://condometropolis.com/orlando-international-buyers.php

If you are not already working with another Realtor, feel free to contact us and we'll be happy to lead you through the Orlando real estate maze.
--
Kind regards,

Marcus Burke PhD, GRI
Broker: Orlando Real Estate Pros
Condo Metropolis LLC
Licensed Real Estate Brokerage

Condo Website: http://www.CondoMetropolis.com
Blog: http://www.CondoMetropolis.com/blog

Homes Website & blog: http://www.OrlandoRealEstatePros.com

Telephone / Fax: 407-290-3408.
0 votes Thank Flag Link Sun Mar 22, 2009
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