Property tax is a US tax equivalent to IPTU in Brazil. The tax is applied to various types of property, from land, apartments or houses, to industrial buildings. 

As the country's states have autonomy from the federal government, the maximum tax rate is determined by these federal units. And the cities or counties are responsible for collecting and administering the money. Read on to find out how property tax works in the USA. 

For financed houses

Houses that were bought with US bank financing already have the IPTU tax included in their monthly fee. Therefore, the owner does not have to worry about this tax while paying the loan installments.

How does property tax work? 

The amount of tax is between 1.2% and 1.6% of the property's value. This rate varies from city to city, as explained above. In addition, these values are revised periodically based on the estimated sale price or with reference to the value of the last sale. 

Every year the property tax is sent to the owner by the beginning of November and the entire amount must be paid by the end of March. For those wishing to save money, it is possible to pay the amount in advance and get discounts. Or, as the case may be, it is also possible to pay in installments (Installment Payment Plan). However, this requires prior authorization. 

Tax rebates

There are certain situations that entitle you to a reduction in this tax. In the state of Florida you can appeal: 

  • Who permanently resides on the property.
  • Widowers who permanently reside on the property. 
  • People with disabilities. 
  • Elderly people over 65 with an income that does not exceed the established annual limit. 
  • Military personnel and veterans. 

In other states, there may still be situations that qualify for the benefit, but each region must be assessed separately. 

What do you do with the money raised? 

In the state of Florida, there is no state tax for individuals or companies. Therefore property tax is converted into improvements for the region where it is collected. Schools, roads, buildings and other structures that add to the infrastructure and quality of life for the taxpayer can benefit. 

It's worth noting that property tax is just as important as paying income tax, whether in Brazil or the United States. For this reason, failure to pay the tax will result in a fine to be paid to the American government, after two years of default, the property can go to auction. 

Avoid problems and certain inconveniences with the purchase of your property with a specialized consultancy like The Florida Lounge. Our relationship agents are able to help you with everything from choosing the ideal property to questions about schools, visas and the many other choices you will need to make to live and invest in the United States. Click on the banner below and ask all your questions.

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