FLORIDA HOMESTEAD EXEMPTION

Benefits of a Homestead Exemption

• Entitles most homeowners to a deduction of $25,000 off of their property’s assessed value, resulting in a property tax savings.
• If your home is worth at least $75,000, you will receive an additional $25,000 deduction from your assessed value, although that additional deduction will not apply to school tax levies. 
• You may also qualify for additional homestead exemptions if you are over 65 years old or have a disability. 
• Receipt of a homestead exemption means that  the assessed value of your homestead property cannot increase more than 3% per year or the percent change in the Consumer Price Index (pursuant to the Save Our Homes Amendment to the Florida Constitution).
  • In many cases, this tax savings can  now be transferred to a new Florida residence if you move.

How to Apply for a Homestead Exemption

• Homestead exemption applications  must be filed with the county Property Appraiser by March 1st of the tax year for which the exemption is sought.
• If you already have a homestead exemption, you probably do not need to re-apply, as most counties use an automatic renewal process, whereby you only need to notify the Property Appraiser if you are no longer entitled to the exemption.

What property qualifies for a homestead exemption?

• Must have either legal or beneficial title to the property
• Must be the permanent residence of either yourself or someone who is legally or naturally dependent on you.
  • The property can be owned by a trust, as long as the applicant retains beneficial title and a possessory interest in the property.
  • The homestead exemption may not be claimed by a corporation.
• Statutory factors for permanent residency, including but not limited to:
  • The existence of a formal declaration of domicile
  • Where your children are registered for school
  • Your place of employment
  • The address where you are registered to vote,
  • The address on your driver’s license or identification card, vehicle registration,
  • The address on your federal income tax returns,
  • The address on your bank statements, and proof of payment for utilities at the subject property.
• The homestead exemption only applies to that portion of the property that is classified and assessed as owner-occupied residential property.  Thus, mixed-use properties may only receive the homestead exemption benefits on a portion of the property.