How to Calculate Property Taxes in Palm Beach County

How property taxes are calculated in Palm Beach County

Florida property taxes are calculated using a straightforward formula. Once you understand the pieces, you can estimate any home's tax bill in minutes. Here is the formula:

Taxable value is your home's assessed value minus any exemptions. The assessed value is set by the Palm Beach County Property Appraiser and is based on the market value of your home, capped at 3% annual increases under the Save Our Homes amendment if you have a Homestead Exemption.

Millage rate is the tax rate applied to your property. One mill equals $1 of tax for every $1,000 of taxable value. Your total millage rate is the sum of rates from several taxing authorities: Palm Beach County, your city or municipality, the School Board, the South Florida Water Management District, and any special districts (like library, fire, or community development districts).

Real examples at different price points

Let us walk through the math for three different home prices in Palm Beach County, assuming a combined millage rate of 19 mills (the midpoint of the typical range).

These are estimates at 19 mills. Your actual millage rate will vary based on your specific location. Contact the Palm Beach County Property Appraiser for precise figures.

How to read your TRIM notice

The TRIM (Truth in Millage) notice is mailed to every property owner in Florida each August. It is your proposed property tax bill for the upcoming year. Here is what to look for:

• Market value: The estimated market value of your home as of January 1 of that year
• Assessed value: The value used for tax purposes. With a Homestead Exemption, this is capped at 3% annual increases under Save Our Homes
• Exemptions: The Homestead Exemption ($50,000) and any other exemptions you qualify for are listed here
• Taxable value: Assessed value minus exemptions. This is the number used to calculate your tax bill
• Millage rates: Each taxing authority's proposed rate is listed separately, along with the total
• Estimated tax: The bottom line. Your estimated annual tax bill based on the proposed rates

How reassessment works

The Palm Beach County Property Appraiser reassesses all properties each year. The assessed value is based on the market value as of January 1. If your home's market value goes up, your assessed value can go up too. But with the Save Our Homes amendment, your assessed value cannot increase by more than 3% per year (or the Consumer Price Index, whichever is lower).

This means if you bought your home for $300,000 and it is now worth $400,000, you are still paying taxes on the assessed value of roughly $300,000 plus 3% per year since you bought it. The longer you stay in your home, the bigger the gap between market value and assessed value becomes.

Exemptions that reduce your taxes

• Homestead Exemption: Removes $50,000 from your assessed value. You must file by March 1 of the year following your purchase. This is the most important exemption for most homeowners
• Senior Exemption: Additional exemptions for homeowners 65 and older with certain income limits. Check with the Property Appraiser for current qualifications
• Disabled Veteran Exemption: Significant additional exemptions for disabled veterans. Contact the Palm Beach County Veterans Services office
• Widow/Widower Exemption: $5,000 exemption for surviving spouses
• Total and Permanent Disability Exemption: Full or partial exemption for homeowners with total and permanent disabilities