Florida Homestead Exemption 101

Buying a home in Florida comes with plenty of perks—sunshine, great communities, and a booming real estate market. But did you know that Florida homeowners can significantly lower their property tax bills through the state’s Homestead Exemption? When protecting your property and saving on taxes in Florida, the Homestead Exemption is your best tool. Understanding this exemption is key to maximizing its benefits and safeguarding your home’s value.

In this blog, we’ll break down the basics of Florida’s Homestead Exemption, how you can apply, what it means for your property taxes, and a few tips to ensure you don’t miss out on this valuable benefit.

What is the Florida Homestead Exemption?

The Homestead Exemption is a provision in Florida law that offers homeowners a way to reduce the taxable value of their primary residence. If you qualify, you can exempt up to $50,000 from the assessed value of your home for tax purposes.

• The first $25,000 applies to all property taxes, including school district taxes.
• The second $25,000 applies to the assessed value between $50,000 and $75,000, but excludes school district taxes.

By way of example, if your home is valued at $200,000, the exemption could lower your taxable value to $150,000. That could mean thousands in tax savings each year. Florida has one of the most generous homestead exemptions in the country, saving homeowners around $750 to $1,000 annually on average.

Ensure your home is your permanent residence before January 1 of the year in which you’re claiming the exemption to maximize your tax benefits.

Eligibility Requirements for the Homestead Exemption

To qualify for the homestead exemption in Florida, your property must be your permanent and primary residence. If you own a home in Florida and live there year-round, you likely qualify, but there are a few key details you’ll want to pay close attention to before applying.

First and foremost, you must hold legal or equitable title to the property. In simple terms, you need to be the rightful owner, either through direct ownership or other legal arrangements, such as trusts. Additionally, you must establish residency and occupy the home as your primary residence by January 1 of the year you’re applying for the exemption.

Key requirements include:

• Florida Residency: You must be a permanent resident of Florida, which you can prove through documents like your Florida driver’s license, voter registration, or utility bills showing your Florida address.
• Primary Residence: The property for which you seek the homestead exemption must be your primary living place, not a vacation home or investment property. Florida is strict about this; using a property as a rental or secondary home can disqualify you from the exemption.
• Application Deadline: You must apply by March 1 of the tax year you seek the exemption. This date is non-negotiable, so if you miss the deadline, you’ll have to wait another whole year to reap the benefits.

Many new homeowners miss the March 1 deadline, causing them to lose out on valuable tax savings for that year. To avoid this, set a reminder to file well before March 1, especially if you purchased your home recently. If you miss the deadline, don’t worry—you can still pre-file for the exemption between March 2 and December 31 for the following tax year, ensuring you won’t miss out again.

How to Apply for the Florida Homestead Exemption

Applying for the Homestead Exemption in Florida is a straightforward process, but it requires attention to detail to ensure that everything is submitted correctly.

Steps to Apply:

• Gather the Required Documents: Before you begin the application process, make sure you have the necessary documentation ready. Here's what you'll need:
• Proof of Florida residency: This can include a valid Florida driver’s license or state-issued ID. You’ll also need proof that the property is your permanent residence, such as a utility bill or voter registration card.
• Legal description of your property: This information can typically be found on your property deed or your county property appraiser’s website.
• Social Security number: Both you and your spouse (if applicable) will need to provide Social Security numbers.

Double-check these documents to ensure everything is up to date and accurate. Submitting incorrect or outdated paperwork could delay the approval of your exemption.

• Submit Your Application: Florida makes it convenient for homeowners to file for the Homestead Exemption. Most counties, including St. Johns County, allow you to submit your application online through the county property appraiser’s website. If you prefer a more traditional method, you can file in person or by mail at your local property appraiser’s office.

Filing online can save you time and ensure your application is processed more quickly. Most property appraiser websites will even confirm receipt of your application, so you’ll know it’s in the system.

• File Before the Deadline: Timing is everything when it comes to claiming your Homestead Exemption. To qualify for the exemption in the current tax year, you must file your application by March 1. Missing this deadline means you’ll have to wait until the following year to benefit from the tax savings.

A common mistake is waiting too long to file. Many homeowners assume they have plenty of time, but with busy schedules, the March 1 deadline can sneak up quickly. To avoid missing out on valuable tax savings, mark the deadline on your calendar as soon as you buy a new home or become eligible for the exemption. If you do miss the deadline, you can always pre-file for the next year to ensure you're covered moving forward.

Understanding Homestead Exemption Portability

One of the most overlooked but powerful aspects of Florida’s homestead exemption is portability. This feature allows homeowners to transfer up to $500,000 of their property’s Save Our Homes (SOH) benefit from one Florida home to another.

If you've built up years of savings through the homestead exemption, you can transfer those savings to a new property, reducing its taxable value and keeping your property tax burden lower.

For example, if you’ve lived in your home for several years and accumulated $200,000 in exempted value under SOH, you can transfer that to your new home. This keeps your new property’s taxes lower than they otherwise would be.

Floridians saved $1.5 billion in property taxes in 2021 by transferring their savings to new homes using portability.

The Save Our Homes Cap

Florida’s Save Our Homes provision goes hand-in-hand with the homestead exemption. It limits how much your home’s assessed value can increase each year. No matter how much your home's market value rises, the taxable value is capped at a 3% annual increase.

In a booming real estate market like St. Augustine, home values are skyrocketing, but thanks to the SOH cap, your taxable value increases at a much slower rate, keeping your tax bills manageable.

Make sure you’ve filed your homestead exemption to activate the SOH benefit. Without the exemption, your home’s value won’t be capped.

Special Exemptions for Seniors, Veterans, & Others

Florida also offers additional exemptions for certain groups of people, including senior citizens, disabled veterans, and first responders.

• Construction for an Elderly Family Member: If you’ve added a mother-in-law suite or similar living quarters to your home for an older family member, you may be eligible to reduce your property’s assessed value. To apply, fill out the Original Application for Assessment Reduction for Living Quarters of Parents or Grandparents. Remember, you’ll need to re-apply for this exemption annually.
• Longtime Limited-Income Senior Exemption: This exemption is available in certain counties for seniors aged 65 or older who have lived in Florida for at least 25 years and meet specific income requirements. If your income falls below the set threshold and your home is valued at $250,000 or less, you could qualify for a 100% exemption. To apply, submit the Adjusted Gross Household Income Sworn Statement and Return form.
• Deployed Service Member Exemption: Florida law allows for an exemption based on the number of days you were deployed during the tax year. To claim this, complete the Deployed Military Exemption Application.
• Disabled Veteran Exemption: If you’re 65 or older and sustained injuries during combat, you may qualify for this exemption in addition to other benefits. Check with your county property appraiser for the required documents.
• Surviving Spouse of a Military Service Member: Under Florida's Fallen Heroes Act, surviving spouses of military personnel killed in action may be eligible for an exemption. Contact your county property appraiser for the necessary paperwork.
• Surviving Spouse of a First Responder: If your spouse was a first responder who died in the line of duty, Florida law provides an exemption for surviving spouses. You’ll need to visit your county property appraiser’s office to get the appropriate forms.
• Other Disabilities: Florida offers a $500 property tax exemption for individuals with certain disabilities, including blindness, permanent disability, or requiring the use of a wheelchair. To apply, you’ll need a Physician Certification and the Homestead Exemption Application.

If you fall into any of these categories, consult your local property appraiser’s office to explore additional savings beyond the standard homestead exemption.

Conclusion

The Florida Homestead Exemption is a powerful tool that every homeowner should take full advantage of. It’s not just about saving money on property taxes; it’s about protecting your investment and ensuring that the growth in property values doesn’t overwhelm your tax bill. Whether you’re a long-time St. Augustine resident or new to the area, understanding the homestead exemption, how to apply, and how to use portability can make a significant difference in your financial well-being. Take the time to apply, and don’t forget about the additional savings available through portability and other special exemptions.

With the right knowledge and timely action, you can enjoy the benefits of homeownership in Florida without being weighed down by rising property taxes. If you have any questions or need help navigating the Homestead Exemption process, feel free to contact me.