How Property Tax Works
Dixie County, Florida operates a property tax system that funds essential local services including schools, law enforcement, fire protection, and county government operations. Property taxes are calculated by applying millage rates to the assessed value of real estate, with the current combined rate approximately 9.8 mills (0.98%) for most properties. The actual effective rate varies significantly depending on your property's location within the county, as different areas are served by various special taxing districts that can add additional assessments.
Property values are assessed annually by the Dixie County Property Appraiser, with assessment increases generally capped at 3% annually for homestead properties under Florida's Save Our Homes law. Most property tax benefits require formal application and are not automatically applied to your account. The county offers various tax credits and exemptions that can substantially reduce your tax burden, but property owners must apply for these benefits by the March 1 deadline each year.