Homes for sale in Boca Raton, Florida are subject to property taxes. This is an important part of owning a home because it is another expense that needs to be calculated to determine whether this is an affordable area for you. Understanding Boca Raton property tax will help with the home buying process.
Why Does Property Tax Matter?
Property taxes are a must in Boca Raton as well as everywhere else because it is what the county uses to pay for things that benefit everyone. This includes law enforcement, fire and paramedics, road development and repair, and much more. Without the property taxes, the county wouldn’t have a working budget.
The property taxes are assessed to all property owners. Those with a mortgage will have their bill paid automatically through the escrow account. In addition to the mortgage on the house, an escrow payment is factored in that will go towards paying the property taxes at the end of the year as well as homeowner’s insurance.
Generally, property taxes go up steadily based on the cost of living and what the housing market looks like. The appraisers evaluate the properties at the beginning of every year. As such, if changes are made that would increase the value of the property in the middle of the year, the taxes wouldn’t be impacted until the following year.
What Are The Property Taxes?
The real estate market is constantly fluctuating throughout the area. The average cost of homes is $399,990, though there are homes priced higher and lower. This is going to have an impact on property taxes as it is based upon the appraised value of the property.
The property tax is calculated by the county and Boca Raton is in Palm Beach County. The 2016 tax rate is 1.295 percent. With a home of $399,990, the property taxes for the year would be $5,180. This is generally billed at the end of the year with it due by March of the following year. Often, the county will provide one to two percent discounts if the bill is paid early.
The property tax calculation is simple enough. It is the appraised value multiplied by the tax rate. As the appraised value goes up, so does the total amount of property taxes. Often, when you build a home, the first year is considerably lower because the appraised value is land only. Once the appraisers come the following year and there is a home in place, the value goes up. As such, the escrow amount is adjusted if there is a mortgage in place on the home.
The property appraiser can also provide tax exemptions for a variety of reasons, ranging from veterans to disability to homestead. Further, there is an appeals process in Palm Beach County in the event that anyone disagrees with what their property is valued at. This is an important aspect as a property that is appraised for significantly more than what it is worth could result in property taxes that essentially make the property too expensive to own.
As a homeowner, it’s important to understand all of your costs. You have your mortgage payment, homeowner’s insurance, property taxes, PMI if it pertains to the way you obtained your mortgage, as well as HOA dues if they exist within the community you choose to live in.
How Do the Property Taxes Compare to Other Areas?
Palm Beach County has one of the higher tax rates throughout the state of Florida at 1.295 percent. The next county over, Miami-Dade, is at 1.272 percent. Staying along the Atlantic Coast, Duval County, which includes the metropolitan area of Jacksonville, has a tax rate of 1.010, which is one of the lowest in the state.
There are lower tax rates elsewhere in the state as well. Orange County, which features the Orlando metropolitan has a tax rate of 1.178 percent and Hillsborough County where Tampa is has a tax rate of 1.177 percent. By looking at some of the most highly populated metro areas, Boca Raton is certainly at the top of the list.
While Palm Beach does have one of the higher tax rates in the state, it is still lower than other parts of the country, such as New York and Texas. Other popular areas to live in around the United States that are found along the beach offer varied property tax rates. This includes Myrtle Beach in South Carolina with a tax rate of 0.388 percent, Virginia Beach with a tax rate of 0.88 percent and Atlantic City, New Jersey of 2.166 percent.
As such, there are plenty of options to live along the Atlantic Coast of the United States. Boca Raton remains a popular option, however. Much of this is because the cost of living in comparison to some of the other cities, even those with lower property taxes on the beach, is still lower. There is no state income tax in Florida, which can help to reduce overall costs tremendously.
How About The Overall Cost of Living?
In Boca Raton, the cost of living is 118 on a scale of 100 for the United States as a whole. This shows that it is more expensive to live in this area in comparison to many other places around the country. The highest aspect of the cost of living is housing, which is a 141 on the scale.
The cost of housing is high due to the median housing price (which is almost double the median for the state) as well as the higher property tax rate. Many people move to Boca Raton despite the higher cost of living because of the close proximity to the beaches.
2 Point Highlight
Many people move to Boca Raton despite the higher cost of living because of the close proximity to the beaches.
There is no state income tax in Florida, which can help to reduce overall costs tremendously.
