Closing in January when the property taxes are super low
When someone has lived in a home for many years, their property taxes are often artificially low because of long-standing exemptions and assessment caps (like Florida’s Save Our Homes).
If you close in January of the following year, here’s what happens:
What you get at closing
Property taxes are paid in arrears
At a January closing, the tax proration is based on the prior year’s tax bill
That bill still reflects:
The long-term owner’s capped assessment
Their homestead exemption
As the buyer, you effectively benefit from those lower taxes for that entire year
Why the increase doesn’t hit right…
The skinny
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