What is a Homestead Exemption?

Have you heard of the Florida homestead exemption? The homestead exemption in Florida is a legal remedy designed to offer homeowners in the state a significant property tax break on their primary residence. Let’s take a look at the key aspects of this exemption.

Amount of Exemption 

The Florida homestead exemption can reduce the taxable value of a primary residence by up to $50,000. The first $25,000 applies to all property taxes, including school district taxes. The additional exemption up to $25,000 applies to the assessed value between $50,000 and $75,000 and does not include school district taxes.

Eligibility

To be eligible for this exemption, the homeowner must own and occupy the property as their primary residence as of January 1st of the tax year. The exemption is not applicable to rental properties or second homes.

Additional Benefits for Certain Homeowners

Florida also offers additional exemptions for certain groups, such as seniors, veterans, and disabled individuals. For instance, there’s an additional exemption for low-income seniors in certain municipalities.

Save Our Homes Cap

Another important aspect of Florida’s homestead exemption is the “Save Our Homes” assessment limitation. This provision caps the increase in the assessed value of a homesteaded property to a maximum of 3% per year or the rate of inflation, whichever is lower. This can lead to significant property tax savings over time, especially in areas with rapidly rising property values.

Application Process

Homeowners must apply for the homestead exemption with their county property appraiser. The deadline to apply is usually March 1st of the tax year.

Portability

Here in Florida, you can transfer (or “port”) the accumulated benefit from the Save Our Homes cap when you move from one homestead property to another within the state. This is known as portability and can result in substantial tax savings when buying a new home.

The homestead exemption is a vital tool for Florida homeowners, offering not only a reduction in property taxes but also protection against forced sale under certain circumstances. It’s advisable for homeowners to consult with their local property appraiser’s office or a tax professional to understand fully how this exemption applies to their specific situation.