Welcome to Homeownership in Florida: Here’s What You Need to Know About the Homestead Exemption

Whether you’re a first-time homebuyer, or it’s just your first in the Sunshine State, understanding Florida's property tax system is essential—and the homestead exemption is one of the most significant benefits you can take advantage of as a homeowner here. Let’s break it down.

What is the Homestead Exemption?

The homestead exemption is a property tax benefit designed to reduce the taxable value of your primary residence. If your home qualifies, you could exempt up to $50,000 of its assessed value, lowering the amount of property taxes you owe. For example, if your home is assessed at $150,000 and you qualify for the full $50,000 exemption, your taxable value will drop to $100,000. That reduction translates to lower property taxes for you!

Why Do I Need to Apply?

The homestead exemption isn’t automatic. To benefit, you need to apply with your local property appraiser’s office. The deadline is March 1 of the year following your home purchase.

If you owned and lived in your home as of January 1, apply by March 1 to see the exemption reflected in that year’s property taxes.

For more information about exemptions, visit https://floridarevenue.com/property/Pages/Taxpayers_Exemptions.aspx

What About the Save Our Homes (SOH) Benefit?

The SOH benefit kicks in after your first year with the homestead exemption. It limits the annual increase in your home’s assessed value to 3% or the inflation rate, whichever is lower. This keeps your taxable value predictable, even as property values rise.

Why Are My Taxes Different from the Seller’s?

This is a common question I get when working with buyers. When a property is sold, the previous owner’s exemptions and SOH benefit don’t transfer to you. Instead, the property is reassessed at its full market value on January 1 of the year after your purchase. This can cause your taxes to be higher than the seller’s were. However, once you apply for the homestead exemption, you’ll start to see savings—and the SOH benefit will protect you in the long run.

Don’t Miss the Deadline

If you bought your home recently, mark your calendar! File your homestead exemption application by March 1 to lock in those tax savings. This simple step can make a big difference in your budget as a homeowner.