How to estimate property taxes - Jacksonville Fl

5 Replies

I am looking for and analyzing property in Duval and Clay county in Jax, FL. When estimating property taxes, I am pulling the previous year taxes from the county website. However, the properties are homestead which means the taxable value equals assessed value less 50k, right? As an investor, the property won't be homestead so I need to add back 50k to taxable value and estimate taxes based on it, correct?

Just want to be sure I understand this part of the analysis before submitting any offers.

Thanks in advance!

@Garrett Masiulis

No, take the amount you're going to pay for it and apply the total millage (from all taxing entities) to that price.  That will give you an estimated cost of taxes based on the price you paid (fair market).

So if the total millage (county, city, water control, drainage, port and nav, road and bridge, etc) is 3.24, multiple your offer by .0324 and that will be the property tax liability based on the value that the appraisal district will shoot for with no exemptions.

I agree with what @Justin Fox said, I would only add that you might look at some recent sales to see if they are being valued by the county at the full sale price. Often times, the county appraiser uses a lower value than the new sale price.

For taxes in Duval and most of Clay county you can use the following formula and it is usually pretty accurate. This is what we use:

(Purchase Price * .92) * .01865 = Annual Taxes

The theory behind it is we take about 92% of the Purchase Price which is usually still a bit high for tax appraised value but we like to be conservative. Then we multiply that value by the millage rate which is usually .01865. 

I will also look at the tax record to see last year's taxes if our number seems off. 

Hope that helps.