Understanding the Tampa property tax is an important aspect of looking for homes throughout Tampa, Florida. While the metropolitan area has a lot to offer with various home styles and sun year round, being able to afford the home and all that comes with it needs to be a consideration.
Why Does Property Tax Matter?
Property taxes are a big part of being a homeowner in Tampa, Florida – and anywhere else for that matter. You want to be sure you can afford the taxes in addition to your mortgage payment. When you buy a home, the property is appraised and the mortgage company will factor in the cost of property taxes for your escrow account.
As you make your mortgage payment every month, you will also be paying an escrow amount. The mortgage company will then use what’s in the escrow account at the end of every year in order to settle up with Hillsborough County regarding the assessed taxes. If there is no mortgage in place on the property, a bill is simply sent from the county for you to pay, which can be done inside of a tax office, by mail, or online.
The property taxes in the county are used for such things as sheriff’s patrol, paramedic/fire services, parks and recreation, road network maintenance, and more. What the money is used for is planned out with a budget for Hillsborough County.
What are Tampa Property Taxes?
The property taxes is assessed to all homeowners as being a part of Hillsborough County. The taxes are paid annually and are generally done so through your mortgage company. The rate can change from year to year, as can the overall appraised value of the property. When homes are newly built, often the first year taxes are lower because the assessment is on land only.
The property tax is a basic calculation of the assessed home value multiplied by the tax rate for Hillsborough County. This will then result in the amount that needs to be paid. The 2016 tax rate for homes in Tampa is 1.177 percent. With the median price currently at $189,900, this means that the average property taxes would be $2235.
There are various Tampa neighborhoods where homes can be found priced at $500,000 or more, including SoHo, Safety Harbour, and more. As such, the cost of the property taxes will go up as the value of the property goes up.
Discounts are available when property taxes are paid by a certain date. This can result in a 1% overall discount on what is owed. Using the example provided earlier, if the taxes are $2235, the discount would be $22.35. Other discounts may be available depending upon the year.
How Does Tampa Compare to Other Areas?
When you are looking to call Florida your home, but are unsure of what metropolitan area you want to be close to, it is important to look at the cost of property taxes throughout the state. This will help to determine how much you are going to be spending as a whole.
If you wish to stay along the Gulf Coast, Bradenton has a tax rate of 1.127 percent while Fort Myers has a tax rate of 1.202 percent. Other popular areas can be found throughout the state as well. Orlando has a tax rate of 1.178 percent while Miami has 1.272 percent. The property taxes need to be explored as well as the median housing prices to determine what the total monthly expense for housing is going to be. In addition to mortgage and property taxes, there may also be HOAs assessed depending upon the community chosen.
Florida has more affordable property taxes in comparison to the rest of the country, too. For example, homeowners in New York City can expect to pay rates of 2.126 percent and those in Dallas are going to be assessed at rates of 2.186 percent. While there are some other areas that pay lower, such as Hawaii with rates of under 0.5 percent and California with rates of under 1.0 percent, the cost of living in Florida is lower.
Overall, Tampa is one of the lowest in the state, which can help to reduce the cost of living and make it an affordable place to call home. The rate is valid for all of Hillsborough County, which means it is possible to live in some of the suburbs of Tampa, such as Riverview, Brandon, Seminole Heights, Lutz, and more.
What’s the Overall Cost of Living in Tampa?
The cost of living in Tampa is low in comparison to the United States as a whole, as well as throughout many of the other major metropolitan areas of the state. It ranks as a 90 on a scale of 100, and housing falling as a 72. Much of this has to do with the cost of the housing as well as the cost of property taxes. The highest aspect of the cost of living has to do with transportation and much of this is because of long commute times due to traffic as well as the Crosstown Expressway, which is a common toll road used to get throughout Tampa.
Florida also does not have a state income tax, which is one of only seven states that feature this. It is one of the reasons many people choose to live in Florida. It can help to keep the cost of living lower, which is highly desired in an economy that is constantly shifting.
When exploring homes, Tampa is a good place to live because of the property taxes being low and there are 3400+ homes on the market at any given time to choose from.
2 Point Highlight
Overall, Tampa is one of the lowest in the state, which can help to reduce the cost of living and make it an affordable place to call home.
The cost of living in Tampa is low in comparison to the United States as a whole.
