If you recently purchased a home in Florida, you may be eligible for the Florida Homestead Tax exemption, which can save you thousands on property taxes. This benefit is designed to help homeowners reduce their taxable home value while also capping the annual increase in assessed value. Understanding how the Florida Homestead Tax exemption works and how to apply is crucial for making the most of this financial advantage.

What Is the Florida Homestead Tax Exemption?

The Florida Homestead Tax exemption provides a reduction in the assessed value of your primary residence. Homeowners can receive an exemption of up to $50,000 on their property’s assessed value, significantly lowering their tax bill. Additionally, the Save Our Homes provision limits the annual increase in the home’s taxable value to 3% or the Consumer Price Index (CPI) increase, whichever is lower. This prevents homeowners from facing steep property tax increases as home values rise.

Who Qualifies for the Florida Homestead Tax Exemption?

To qualify for the Florida Homestead Tax exemption, you must meet these requirements:

  • You must be a permanent Florida resident.
  • The home must be your primary residence as of January 1 of the tax year.
  • You must file for the exemption with your county property appraiser’s office before the March 1 deadline.

If you recently moved to Florida, be sure to apply for the exemption as soon as possible to maximize your savings.

How Does Portability Work?

The Florida Homestead Tax exemption is not transferable, but portability allows homeowners to carry the accumulated tax savings from one homestead property to another anywhere in Florida. This means that if you’ve owned a home for years and benefited from Save Our Homes, you can transfer part of that benefit when moving to a new home in the state.

To take advantage of portability:

  • File a new homestead exemption application for the new property.
  • Submit a portability application within three years of moving.

This feature helps long-term homeowners continue to enjoy lower property taxes even after selling their homes.

How Property Taxes Are Determined

Your Florida Homestead Tax exemption lowers your taxable property value, but your final tax bill depends on several factors:

  1. Property Appraisal – The county property appraiser assesses the market value of your home each year.
  2. Taxing Authorities – Local taxing authorities, including county and city governments, school boards, and special districts, determine millage rates (the tax rate applied to your home’s taxable value).
  3. Tax Collector – The county tax collector sends out the tax bill based on the assessed home value after exemptions are applied.

Property taxes in Florida are paid in arrears, meaning you pay for the previous year’s taxes. Homeowners can receive a discount for paying early, with the largest discount (4%) available in November.

Common Questions About Florida Homestead Tax

Why is January 1 an important date?
The Florida Homestead Tax exemption is based on homeownership as of January 1. If you buy a home after that date, you will need to wait until the next tax year to apply for the exemption.

What if I disagree with my home’s assessed value?
If you believe your home has been over-assessed, you can request a review with the county property appraiser. If the issue is not resolved, you can file a petition with the Value Adjustment Board to contest the assessment.

Why does my neighbor pay less in property taxes than I do?
Long-term homeowners benefit from the Save Our Homes cap, which limits how much their home’s taxable value can increase annually. If your neighbor has lived in their home for 15 years, their taxable value may be significantly lower than a new homeowner’s, even if the homes are identical.

Are second homes eligible for the Florida Homestead Tax exemption?
No, the exemption only applies to primary residences. However, second homes and rental properties have a 10% cap on annual increases in assessed value.

Don’t Miss Out on Florida Homestead Tax Savings

The Florida Homestead Tax exemption is a powerful tool that can help homeowners reduce property taxes and limit increases in taxable value over time. If you’ve recently purchased a home in Florida, filing for this exemption should be a top priority. Be sure to check with your county property appraiser’s office for specific filing details and deadlines.

If you have questions about the Florida Homestead Tax exemption or other property tax savings opportunities, reach out to a local real estate expert to ensure you’re taking full advantage of available benefits.

I’m Maria Wells, Broker/Owner of Lifestyle Realty Group. With years of local market experience, I’m here to simplify your real estate experience taking you from overwhelmed to OVERJOYED! Location📍 Serving Martin & St. Lucie Counties, Florida. Thinking about moving to the Treasure Coast of Florida? Let me help! Download My Free Seller Guide : https://lifestylerealtygroup.com/sellers-guide Download My Free Seller Guide : https://lifestylerealtygroup.com/buying-guide DOWNLOAD Download My Free Seller Guide : https://lifestylerealtygroup.com/relocation-guidemw/ 📌 Let’s Connect: Website : www.LifestyleRealtyGroup.com Email : [email protected] Phone : +1 (772) 781 -2345 Facebook : facebook.com/MariaWellsLifestyleRealty Twitter : https://x.com/mariaswells Subscriptions Link : https://www.youtube.com/@TreasureCoastFl?sub_confirmation=1