The Florida Formula: Understanding Florida’s Property Tax System

What are property taxes?

Property taxes (also called ad valorem taxes) are local taxes based on the assessed value of real property. They are the primary source of local funding for many public services in Florida, collected locally and used to pay for schools, public safety, roads, parks, libraries, stormwater and solid-waste services, and other

What do property taxes fund?

Property taxes pay for day-to-day services and long-term investments that keep communities functioning and safe. Common uses include:

• Public schools and education funding (local portion of school budgets). Florida Ed Association
• Public safety: police, sheriffs’ offices, fire departments, emergency medical services.
• Public works & infrastructure: road maintenance, sidewalks, drainage, stormwater systems.
• Parks, recreation, and libraries: neighborhood parks, community centers, libraries and programs.
• Utilities and environmental services: solid waste collection, water/sewer infrastructure (where provided by local government), mosquito control, water management.
• Debt service & capital projects: payments on bonds for major projects like new schools, road improvements, or facility construction.
• Special services: services funded by non-ad valorem assessments (e.g., certain stormwater or solid-waste fees).

How are property taxes calculated?

The basic calculation uses your taxable value and the combined millage rate(s) set by local taxing authorities: A millage rate (or “mill rate”) is the tax rate expressed in mills (i.e. dollars per $1,000 of taxable value).

For example, at the city's millage rate of 6.3 means $6.30 in taxes for every $1,000 of your property’s taxable value. If a propertys taxable value is $250,000, they would pay $1,575 a year for property taxes to the city. ($250,000 / 1,000 = 250. 250 x $6.30 = $1,575)

Who decides the rates?

Local elected bodies set millage rates during an annual budgeting process that includes public hearings. Typical taxing authorities include:

• County Council
• School boards (local school funding is heavily dependent on property tax revenue)
• Municipal/city governments
• Special districts (water management, fire service, library, mosquito control, etc.).

Because multiple authorities levy taxes, your final bill is the sum of all applicable millage rates

Fiscal Restraint

Despite rising costs (e.g. insurance, fuel, materials), many cities in Florida have kept millage rates stable—or even lowered them—without reducing essential services.

Why It Matters

Decisions are local. Because property tax funds stay in your community, residents have a direct say in how their tax dollars are used. Florida League of Cities

Value-driven governance. The Florida Formula balances providing high-quality services with maintaining tax efficiency and accountability. Florida League of Cities

Long-term stability. Property taxes allow cities to plan, maintain infrastructure, and invest in public safety without constant cutbacks or surprise fee increases.

Want to Learn More?

Dive deeper into the Florida Formula and the principles behind local financing: Florida League of Cities – Florida Formula

View how local millage rates, exemptions, and assessments work in our area through the county property appraiser or tax collector’s website.

Explore our budget breakdown provided by the Florida League of Cities!