Taxation in Florida

Ad Valorem (Property) Tax If you purchase a home in Florida, you will pay ad valorem or "property" tax based on the taxable value of the property. Ad valorem taxes are assessed by the county property appraiser and collected annually by the tax collector's office.

A $25,000 homestead exemption is available to homeowners who meet certain requirements. Certain exemptions are also available to blind persons and other physically-challenged residents.

Estate Tax

Florida's estate tax system is commonly referred to as a "pick-up" tax. Florida picks up all or a portion of the credit for state death taxes allowed by the federal government on the federal estate tax return. Under this system, Florida estate tax is not due unless an estate is required to file a federal estate tax return. The federal filing threshold for 2002 and 2003 is $1,000,000. The threshold for 2004 and 2005 is $1,500,000. When the gross value of an estate is below this threshold, estate tax is not due in Florida and a Florida estate tax return does not need to be filed. Federal changes that will eventually eliminate Florida's estate tax are scheduled to continue through 2004.

Other taxes

Florida does not impose personal income, inheritance, or gift taxes. However, there are other taxes and fees that, in certain counties or circumstances, Florida residents may be required to pay, such as: convention development tax, local option tourist tax, documentary stamp tax, lead-acid battery fee, new tire fee, motor vehicle fee (Lemon Law), or rental car surcharge.

For further information on Florida taxes, visit http://www.myflorida.com/dor/taxes/new.html.

For Legal & Taxation advice, International Mortgage Network recommends that you contact a specialist adviser: