If you bought a home in Florida this year, or you’re about to, the homestead exemption is one of the most valuable — and most overlooked — tax breaks available to you as a permanent resident. Here’s what it actually does and how to make sure you don’t miss the deadline.
What the Exemption Does
Florida’s homestead exemption can reduce your home’s taxable value by up to $50,000, split into two parts. The first $25,000 applies to all property taxes, including school taxes. A second $25,000 applies only to the assessed value between $50,000 and $75,000, and it does not apply to school taxes.
The Save Our Homes Cap
Once you have homestead status, Florida’s Save Our Homes provision limits how much your home’s taxable value can increase each year — capped at 3%, or the change in the Consumer Price Index, whichever is lower — no matter how much your home’s market value actually rises. Over time in a rising market, this can create a significant gap between your taxable value and your home’s real market value.
If you move to a new homestead elsewhere in Florida, you may also be able to carry over (or “port”) up to $500,000 of your accumulated Save Our Homes savings to your new home, which can meaningfully lower your tax bill on the next purchase.
Deadline & How to Apply
Applications are due March 1 of the tax year. To qualify, you must own the property and have been living in it as your permanent residence as of January 1 of that year. You’ll typically need to show proof of Florida residency — a Florida driver’s license, voter registration, or vehicle registration listing the property address are all commonly accepted. You file directly with your county Property Appraiser’s office; once approved, the exemption renews automatically each year as long as you still own and live in the home.
Why This Matters When You’re Buying or Selling
If you’re buying, don’t assume the seller’s tax bill is what yours will be — without homestead exemption and Save Our Homes in place yet, your first year’s taxes can look very different once the property is reassessed. If you’re selling a long-time homestead, it helps to understand how much of your tax savings may or may not transfer, so there are no surprises for either side at the closing table.
Have questions about how this applies to a specific property you’re buying or selling? Reach out to our team — we’re happy to walk through it with you.
This article is for general informational purposes only and is not tax or legal advice. Homestead exemption rules can vary by county and change over time — always confirm current requirements and deadlines with your county Property Appraiser’s office or a qualified tax professional.