Property tax: how does the IPTU work in the USA?

Property tax: how does IPTU work in the US?

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

Since the states in the country have autonomy in relation to the federal government, the maximum tax rate is determined by these federative units. And the cities or counties are responsible for collecting and administering the money. Read on and understand how Property tax works in the USA. 

For financed houses

The houses that were acquired through North American bank financing already have the IPTU tax included in their monthly value. Therefore, the homeowner does not have to worry about this tax while paying the loan installments.

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How does Property tax work? 

The tax amount is between 1.2% and 1.6% of the property value. This rate varies from city to city, as explained above. In addition, these values are revised periodically based on the estimated selling 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 who wish to save money, it is possible to pay the amount up front and get discounts. Or, as the case may be, it is also possible to pay in installments (Installment Payment Plan). But, for this, it is necessary to ask for prior authorization. 

Tax rebates

There are some situations that constitute a right to a reduction of this tax. In the state of Florida they can appeal: 

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

In other states there may still be situations that fall under the benefit, it is necessary to evaluate each region separately. 


What do you do with the amount collected? 

In the state of Florida there is no state income tax for individuals or corporations. Therefore, the property tax is converted into improvements for your collecting region. Schools, roads, buildings, and other structures that add to the infrastructure and quality of life for the taxpayer himself can benefit. 

It is worth pointing out that the property tax is as important as the payment of income tax, whether in Brazil or in the United States. Therefore, failure to contribute implies a fine to be paid to the American government and, 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 such as The Florida Lounge. Our relationship agents are able to help you from choosing the ideal property, to issues related to schools, visas and other choices that you will need to make to live and invest in the United States. Click on the banner below and clarify all your doubts.


Learn about the different ways to send money to the United States and choose the one that best suits your needs.


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