What Is Florida Homestead Exemption and Why Does It Matter?
Whether you are a first-time homeowner or have recently relocated to the Sunshine State, knowing the advantages of Homestead Exemption can help you save a lot of money in the future. Florida statutes provide one of the most valuable property tax benefits in the United States through Homestead Exemption.
Florida Homestead Exemption: Tax Savings for Primary Residences
Every person who owns a home in Florida and maintains it as their primary residence is eligible for a property tax savings exemption. Homestead Exemption reduces the assessed value of your home when calculating the taxable value of your primary residence. Additionally, the Save Our Homes Assessment cap limits the annual assessed value of your primary residence to 3% or the amount of change in the Consumer Price Index, whichever is lower.
Salefish Properties Helps Homeowners Apply for Florida Homestead Exemption
Each December, Salefish Properties sends a letter to all our customers who have purchased a home that year. The communication includes a copy of their Closing Statement and a reminder to file for Homestead Exemption if they are a permanent Florida resident and intend this property to be their primary residence. It is very beneficial to own a home in Florida and make it your primary residence which entitles you to a Homestead Exemption and can reduce your annual real estate property taxes.
Who Qualifies for Florida Homestead Exemption and How to Apply
In order to qualify for a Florida Homestead Exemption, you must
- be a legal resident of Florida,
- hold the title to the property,
- make the property your permanent residence,
- not claim a primary residence in any other state.
Additional tax exemptions may apply; you will need to check with the Property Appraiser in the county your home is located in.
You can apply for a Homestead Exemption:
- online,
- in person,
- by downloading the form and mailing it to the County’s Property Appraiser’s office.
Florida Homestead Exemption Filing Deadlines and Renewal
The filing period begins after January 1st of the year you purchased the home and continues through March 1st of the next tax year.
After you have filed for a Homestead Exemption the first time, it should be automatically renewed as long as you continue to qualify. It is always a good idea to verify your homestead exemption status on the county Property Appraiser’s website.
Documents Needed to Apply for Florida Homestead Exemption
When applying for Homestead Exemption, you will need:
- Valid Florida driver’s license (Florida ID for non-drivers)
- Social Security Numbers of all property owners who are applying and their spouses
- Permanent residency proof (Alien Registration Card), if not a U.S. citizen
- Any one of the following:
- Valid Florida vehicle registration;
- Valid Florida voter registration (voting & homestead addresses must match);
- Declaration of Domicile, if applicable;
- Federal tax return;
- Two Utility bills from the property for which you are applying.
Understanding Florida Homestead Portability
If you purchase another home in Florida and it becomes your new primary residence, you can transfer up to $500,000 of your tax benefits to the new home through Florida’s Portability provisions. Your homestead exemption status does not automatically transfer to a new property. Florida law requires homeowners to file a new application if they move or if they change the way title is held. Please review the requirements for qualifying and applying for portability in the county where the new home is located in with the Property Appraiser’s office or website.
Keep in mind, any changes to your residency or home ownership status need to be reported to the county Property Appraiser.
Here are three property appraisers in the Southeast Florida area:
Palm Beach County Property Appraiser
Martin County Property Appraiser
Broward County Property Appraiser
Salefish Properties Is Here to Help You Every Step of the Way
Take advantage of one of the nation’s most valuable property tax benefits! If you own a home and permanently reside in Florida, applying for the Homestead Exemption should be one of your first priorities. Florida’s Homestead Exemption law can significantly reduce your property taxes and help you save money year after year. Understanding what your property taxes are estimated to be is a very important step in budgeting for a new home. Salefish Properties is here to guide you in the search and purchase of a home in Southeast Florida.
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We look forward to working with you!
Nancy Jackson, Real Estate Broker
Pricing Strategy Advisor (PSA)
Palm Beach County Florida
