Florida Housing Market

The biggest urban areas of the state are Jacksonville, Miami, Tampa, Orlando, and St. Petersburg. Each part of the state, including its major cities, varies in terms of its housing market: for instance, the median home value in Miami as of September 2019 was just shy of $340,000, while in Jacksonville, it’s roughly $180,000.

Property Taxes in Florida

Florida stands out as a state with a rather affordable housing market, thanks in part to an effective property tax rate that is under the national average at 0.98%. This comes out to less than $1,800 every year for the average Florida homeowner.

A county official will appraise your property to determine your tax rate, once applicable exemptions are taken into account. Your home may be eligible for the homestead exemption or the Save Our Homes assessment which can decrease the value of your home.

State Taxes

Another benefit of purchasing a home in Florida is the absence of state or local income taxes, saving you money especially if you’re moving from a state with heavy tax burdens like New York, Minnesota, or California. This is one reason so many seniors across the country look to retire in Florida.

On top of that, there is no estate tax in Florida, meaning your inherited property including cash, investments, real estate, trusts, and others won’t be taxed. The state sales tax is also quite low, hovering between 6% and 8%.

Florida Job Stats to Consider

While Florida is home to many types of businesses, the state's biggest industry by far is tourism, contributing nearly $70 billion to the state’s economy every year. No other industry in Florida employs as many people as well.

Florida also does considerable business in the agriculture and international trade sectors, while the space industry also brings considerable revenue into the state. There are more than 15 companies on the Fortune 500 list which call Florida home such as Publix Super Markets, Office Depot, World Fuel Services, and Hertz.

In terms of unemployment, as of September 2019, the rate was 3.2%, which is just under the national average of 3.5%.

Florida Closing Costs

Homebuyers must be aware of the fees involved in their closing costs. Included in closing costs are mortgage lender fees, title company fees, and other administration charges that will vary based on your lender and where you’ve purchased your home. You’ll also need to pay for your title insurance, funding fees in the case of a VA loan, and mortgage and transfer taxes.

You should also be aware that Florida is one of several states that charges a mortgage, or documentary stamp, tax. This tax comes out to about $0.35 on every $100 of the price of your home. The transfer tax is typically paid by the seller of the property, however this can depend on the terms negotiated in making the initial offer. The transfer tax in Florida is $0.70 for every $100 of the home’s price, unless the home is in Miami-Dade County, where the rate is only $0.60 per $100.

An added surtax of $0.45 per $100 will need to be paid for multi-family or larger homes. Lastly, there is an intangible fee of 0.02%.