Naples Property Taxes

Taxes—no one likes them. Unfortunately, there is no way around them, so it is important to take property taxes into account when looking to invest in any home or property so you can craft a proper and accurate budget. 

What are Property Taxes? 

Property Taxes are defined as biannual or annual collected by local government based on a percentage of the assessed value of the property involved. Property taxes make up a large percentage of the local government’s revenue. This money is reinvested into the community to fund essential community resources such as fire departments, libraries, parks, schools, construction, road work, and more. 

Florida neighborhood landscape at sunset showing large properties of homeowners

Property tax rates can vary greatly depending on the town, city, or state in which the taxpayer resides. It is also considered a regressive tax, meaning that no matter what the taxpayer’s income is, the same rate of taxation will be charged. These taxes can cover property and more tangible items such as cars and boats, but that, too, will depend on where the taxpayer lives. 

Property Taxes vs. Real Estate Taxes

You will sometimes hear the term Real Estate Taxes used interchangeably with Property taxes. While similar, Property taxes consider other large-ticket items such as cars, boats, or other motor vehicles, whereas Real Estate Taxes only consider physical property. 

Property Taxes in Naples, Florida (What to Expect?) 

The current tax rate for Collier County is 1.17%. We like to consider this the 1% Rule of Thumb when purchasing a property, so when we purchase an investment property or help a client find the perfect home, we always take into account the yearly 1% fee in our budget planning. 

Are Taxes high?

Collier County, Florida, home to Naples, currently has a property tax rate of 1.175, according to the city website. This is one of the lowest tax rates in the state while being one of the premier cities in which to live or visit. This is wonderful for those looking to find their new Naples home or investing in an area with guaranteed return.

The current U.S.cities/states with the highest property tax rates are: 

  • Rockford, Illinois: 3.04%
  • Waterbury, Connecticut: 2.75%
  • Bridgeport, Connecticut: 2.67%
  • Aurora, Illinois: 2.53%
  • Elgin, Illinois: 2.53%

The two States with the highest property tax rates are Illinois, with a 2.08% rate, and New Jersey, with a massive 2.38 rate. 

 In Naples, however, property taxes are much lower, hitting just over 1% at 1.17% of assessed property value. 

How much are property taxes? 

It will depend on the assessed value of your property. This is not something dictated by the tax collector, but rather it is determined by a local home appraiser. 

Local home appraiser reviewing his appraisal with homeowners to help determine the property taxes

For some easy math, imagine you bought a $2,000,000 investment property at the 1% Rule of Thumb rate. You would expect to then owe $20,000 of yearly taxes. That may seem like a hefty chunk of change when looking into a property but then think of the same property in a different location. The highest tax rate in Rockford, Illinois? That same $2,000,000 suddenly has $68,000 in annual taxes. Even in Florida’s highest taxed county, St. Lucie has a 1.69% rate, bumping that 20,000 in taxes by an additional 18,000. 

Thanks to a low millage and balanced budget, Naples has one of the state’s most affordable rates. 

How has this changed over the years? 

Property tax rates have stayed extremely balanced in Naples over the years. The rate was slightly raised in 2020 to 1.17 from 1.15, which was introduced during COVID-19 and was at 1.18 as early as 2013. This stability creates a positive investing environment, as investors can go into a deal expecting balance and confidence that property taxes will stay stable in the area. 

A stable and low property tax rate is just one item on the growing list of reasons to consider Naples for your next property. 

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Drew Josephson
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