Orlando, FL has been a destination for tourists since the founding of its most famous landmark, but many people who are considering a home purchase in Orange County don’t realize that the local government derives over half of its revenue from local property taxes. In fact, the state of Florida relies very heavily on property and sales tax for the majority of its revenue. The state does not have an income tax.  That can make Orlando property tax an important part of a homeowner’s budget.
How much are the property tax rates in Orlando?
Property taxes in Orange County are assessed through a millage rate that is based on the appraised value of the property. This means that properties worth more will have a higher property tax bill than properties that are deemed by the Property Appraiser Office to have a lower value. This means that comparing property taxes with other municipalities requires a lot of analysis.
The median property tax in Orange County, Florida is $2,152 per year. This amount is assessed on the median home, which in Orlando has an appraised value of $228,600. It’s important to note that due to a series of property tax laws in Florida, most homeowners do not pay property tax on the full value of their property. In addition to homeowner exemptions and other discounts, there is also protection put into place to protect homeowners from sudden increases in their property value. By law, the value of a property is assessed when the property is purchased. Every year, another appraisal is done of the property, but the amount of tax charged can only increase by 3% for owner-occupiers of a home. This is a valuable protection for Orlando residents on fixed incomes, but it means that the county does not collect the full assessed value of taxes on every property. In fact, Orange County typically collects 0.94% of a property’s assessed fair market value as property tax.
Millage rates in the county are somewhat dependent on locality, with various neighborhoods and districts able to add additional taxes to pay for the additional services that they provide. In general, however, the millage rate for the Orlando and Winter Park area is 21.2965.  This includes general government and school taxes, as well as assessments for water and sewer service.
The average yearly property tax paid by Orange County residents amounts to about 3.34% of their yearly income.
How do property taxes in Orlando compare to the rest of the nation?
Orange County has one of the highest median property taxes in the United States, and is ranked 386th of the 3143 counties in order of median property taxes. Out of urban counties, Orange county ranked 342nd out of 806 counties in 2010. The total average tax bill of $2,152 is higher than the state average of $1,791 per property. It is important to keep in mind, however, that that the average apprised property value in Orlando is nearly 30% higher than the national average of $202,000.
Nonetheless, even though property values are higher, the property tax rate is considered high when compared with homes in the nation. As a percentage of median home value, a typical Orlando residence pays about 1.16%. This means that Orlando is ranked 332nd out of 806 urban counties on the tax rate alone. It’s important to note, however, that this is only slightly higher than the national average of 1.14%.
Orange County is ranked 439th of the 3143 counties for property taxes as a percentage of median income. Among urban counties, Orange is ranked 321st out of 806. A typical homeowner will pay about 3.28% of his or her income in property taxes. This is only slightly higher than the national average of 3.25%
While property taxes in Orlando are higher than the national average, it’s important to remember that this is due to several factors. To start, property values in Orlando are higher than the national average. More importantly, potential property owners should keep in mind that property tax is the main source of revenue for schools and the local government. Without a state-wide income tax, taxes on assets, and relatively low fees for car registration and other government services, property tax is one of the few ways that county and city can collect funds.
This means that while property tax rates are high, the overall tax burden on many residents is relatively low. While the overall property tax bills are higher than what most people pay in the United States, it’s important to remember that that assessed property values are high as well.  When tax bills are compared as a percentage of the overall value of a home, the millage rates are only slightly higher than average. In many cases, the higher property tax bills are offset by the lower taxes paid on everything else.
2 Point Highlight
1. While property taxes in Orlando are higher than the national average, it’s important to remember that this is due to several factors.
2. Even though property values are higher, the property tax rate is considered high when compared with homes in the nation.
