Overview
Florida is the third most populous state, known for its beaches, warm climate, and no state income tax. The state attracts retirees, remote workers, and businesses relocating from higher-tax states.
Florida Real Estate Market
Florida's real estate market boomed during the pandemic as remote work enabled migration from expensive metros. While price growth has slowed, markets like Miami, Tampa, Orlando, and Jacksonville remain competitive. Insurance costs and hurricane risks are important considerations.
Property Taxes in Florida
Florida has relatively moderate property tax rates compared to many states.
Average effective rate: 0.89%
Annual tax on median home: ~$3,649
Homestead exemption: Up to $50,000 for primary residence
First-Time Buyer Programs
Florida Housing Programs:
- FL First - First mortgage with down payment assistance
- FL HLP - Second mortgage for down payment/closing costs
- Mortgage Credit Certificate - Tax credit program
Closing Costs in Florida
Florida closing costs typically range from 2-3% of the purchase price.
Common costs include:
- Title insurance: ~0.5% of purchase price
- Documentary stamp tax: $0.70 per $100
- Intangible tax: $0.002 per $1 of mortgage
- Recording fees: Based on document pages
Frequently Asked Questions
Yes, Florida has some of the highest homeowners insurance rates in the nation due to hurricane risk. Annual premiums can range from $3,000 to $10,000+ depending on location and coverage.
Florida's Save Our Homes amendment limits annual increases in assessed value to 3% or the CPI (whichever is lower) for homesteaded properties, protecting longtime owners from rapid tax increases.
If your property is in a FEMA-designated flood zone and you have a federally-backed mortgage, flood insurance is required. Many Florida properties require it.