Florida Real Estate Taxes: What You Need to Know

We are currently receiving more inquiries on our website on this topic than any other, so I want to highlight some of the specific benefits to calling Florida your primary residence.

But first, I would be remiss if I didn’t touch on our Sarasota real estate market here in mid-August:

  • The market is still highly active with the best properties still being purchased in days.
  • There is not quite the frenzy that there was 2-3 months ago. However, I would not say that our market has “slowed-down.” There is still a tremendous amount of activity.

Florida Taxes and Their Implications

While taxes are not the most exciting topic, having your primary residence in Florida could save you a lot of money. I have been advised to let you know that I am not a tax expert- please consult with an expert that is familiar with your situation. I provide the names for two outstanding local professionals below should you need a recommendation.

TOP 6 Florida Tax Facts:

  1. There is no state income, estate, or gift tax in Florida.
  2. Homestead exemption, which is available on your primary residence, reduces your assessed property values up to $50,000. It also limits annual increases (of your assessed value) to 3% or less.
  3. If you sell your primary residence (where you have lived for 2 of the last 5 years); there is a $250,000 exclusion of the gain if single or MFS (married filing separately) and $500,000 exclusion of the gain if MFT (married filing together). There are exceptions and special situations so consult your CPA.
  4. Rental Income is taxed at ordinary income rates. There are also exceptions.
  5. Capital Gains rates depend on your income bracket. The highest rate is 20% and the lowest rate is either 0% or 15%. For a select few there is NIIT (Net Investment Income Tax).

Read more about the benefits of being a “Snow Bird:” Sarasota’s Most Populous Bird Brings Millions to the Economy.

2020 Long-Term Capital Gains Tax Rates

2020 Long-Term Capital Gains Tax Rates

  • 1031 exchanges continue to be a viable tax deferment strategy.
  • Living in Sarasota continues to be beautiful, vibrant and can save you a lot of money. For great advice in these topics, you can reach out to Liz Diaz, a board-certified wills, trust, and estate attorney at Williams Parker, and Shelly Parmet-Evans, a CPA at Piper Hawkins.

    We are here to expertly guide you on your real estate needs when you are ready. Feel free to give us a call @ 941.587.0740.

    Front Cover of Your Guide to Florida Property Investment

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    An idyllic lifestyle and solid financial returns – what more could you want from a property investment? Written for the global buyer, this is a ‘must-have’ guide for anyone looking to invest in the Florida property market and lifestyle. Utilizing their 40 years of experience, Lisa and Lee Mirman de-mystify the investment process.

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