Canadian Misconception - "I Will Pay More Taxes To Buy Property In Florida"

It makes sense to clarify this misconception since we are asked the question frequently. In Florida, the question arises because of ad valorem property taxes and the existence of the Homestead Exemption Amendment. This "discount" on property tax applies to individuals who live in homes as their primary residence. The term for this type of property ownership is Homestead. A property may ONLY be homesteaded if that property is the owner's primary residence.

Florida property tax homestead exemption reduces the value of a home for assessment of property taxes by $50,000 (as of 2008), so a home that is actually worth $200,000 would be taxed as though it was worth only $150,000. Depending on the millage rate of the community in which the property is located, the savings can be worth up to several hundred dollars in taxes owed.

So, to answer the question, an individual who owns property in Florida that is NOT his primary residence may not apply for this exemption. Therefore, whether that owner is from another country, another state... or even another area of Florida, he will pay the property tax based on the actual assessed value without the discount. There is NO additional tax for property owned by Canadians. As a mater of fact, the United States is one country that is very fair about property ownership by foreign nationals!