Florida is one of the best places in the United States for families and individuals to own property due to the low property taxes. The average property tax rate of the state of Florida is about 1.10%, which is slightly lower than the national average. A homeowner can expect to pay $1,846 in property taxes in Florida for a home with an assessed value of $167,800. The national average in property taxes for a home assessed at the same value is $2,032, which is about $200 higher.
West Palm Beach, which is located in Palm Beach County, Florida leverages taxes on real property owned within the bounds of the city. Not only does this include property owned by businesses and corporations, but it also includes property owned by homeowners. The money collected from property taxes is used to pay for law enforcement, education, road development, and other services. Property taxes in West Palm Beach depend on the assessed value of the property.
There are quite a few laws in Florida that limit the property taxes due on homes occupied by the owner. For example, Florida has the Save Our Homes assessment limitation, which effectively ensures property tax assessment increases does not exceed 3% annually.
Property Taxes: How Does West Palm Beach Measure Up?
Based on property tax rates and median home values for Florida provided by SmartAsset, a personal finance technology company, here is how West Palm Beach, FL compares with other similar cities in the United States.
West Palm Beach, FL
The property tax rate for Palm Beach County is 1.30%, which is about equal to the the nationwide average effective property tax rate. Since the median value of property in Palm Beach County, FL is $199,700, the median annual property tax payment in West Palm Beach is $2,587. Even though the property tax rate in West Palm Beach is similar to the nationwide average, this translates to West Palm Beach have a slightly higher property tax rate than most cities in Florida. However, the difference is not significant by any means.
Orlando, FL
Orlando is about three hours away from West Palm Beach. For now, residents can expect to pay a little less for property taxes in Orlando than they would in West Palm. The property tax rate in Orlando is 1.18%, which means a homeowner will pay about $1,976 in property taxes for a house with an assessed value of $167,800, which is the median home value in Orlando. However, homeowners in Orlando may not enjoy these low property tax rates for much longer. Due to hefty budget cuts, the city council may vote to raise property taxes on Orlando homes and businesses. Property tax rates were raised 17.7% back in 2014 due to a severe budget cut.
New Orleans, LA
New Orleans, which is located in the state of Louisiana, is well-known for its rich culture and delicious food. Even though New Orleans effectively has the second highest property rate in the entire state of Louisiana, the property tax rate for the city is still well below the national average. The average effective property tax rate in New Orleans is 0.70%. The median home value in New Orleans is $183,700, which makes the effective median annual tax payment about $1,297.
Philadelphia, PA
Philadelphia, PA is a highly populated city, and for good reason. People fall in love with the culture and amazing food of Philadelphia. Thankfully, if you want to be able to enjoy everything this city has to offer, you will not have to deal with high property tax payments annually. The effective median property tax rate for Philadelphia is 0.925%, which is definitely a bargain, especially for a city located in the north. Unfortunately, property tax rates in Philadelphia are projected to increase soon to raise money for the Philadelphia School District.
New York City, NY
If you want to live in The Big Apple, you can expect to pay a pretty hefty cost in property tax payments every year. However, this is to be expected as the cost of living in New York City is incredibly high. Property taxes in NYC depend on your tax class. There are four tax classes, which makes paying property taxes in NYC somewhat complicated. The average annual payment tax rate ranges from 10% to 16% (depending on the tax class). While this is incredibly high, the payment tax only applies to a certain percentage of the value of the home. This percentage also depends on the tax class.
Honolulu, HI
Just like in The Big Apple, the cost of living in Honolulu, Hawaii is very high. Fortunately, residents of Honolulu enjoy a property tax rate that is one of the lowest in the entire state. Of course, if you want to live on this beautiful, sunny island, you will have to pay high costs for food and consumer goods. You will also pay hefty tax payments on your income. However, the median property tax rate in Honolulu is just 0.28%, which is absolutely incredible.
Even though you can expect the tax on your property to be deductible, you should still expect it to reflect as a part of your mortgage payment every month. Therefore, property taxes will play a big role in how money you will spend on your home every year. Since you will be paying money toward property taxes every month, it is in your best interest to choose a home in a location with a low property tax rate.
2 Point Highlight
• The average property tax rate of the state of Florida is about 1.10%, which is slightly lower than the national average.
• A homeowner can expect to pay $1,846 in property taxes in Florida for a home with an assessed value of $167,800.
