Florida’s Homestead Exemption Made Simple
With the March 1st deadline approaching, you may have heard talk about Florida’s homestead exemption—a powerful tool that reduces the tax burden on Sunshine State homeowners. This exemption is automatic in some states, but in Florida you must apply for it.
WHAT DOES THE EXEMPTION DO?
One of the best things about living in Florida is no state income tax—and one of the worst is property taxes. If you own a home in Florida or are looking to buy one, the homestead exemption will significantly reduce those taxes. The exemption is worth up to $50,000. The first $25,000 applies to all property taxes. The second $25,000 applies to the assessed value.
And, if you 1) sold a homesteaded residence, 2) purchased a new home, and 3) homesteaded your new home, you have three years from the date you sold the old house to transfer your tax savings to the new house via “portability.”
The deadline to apply is March 1st
Filing for homestead exemption is easy, but 30% of eligible Floridians fail to do it. If you purchased a home that will be your primary residence, don’t forget to apply!
DOES IT DO ANYTHING ELSE?
Homestead exemption can shield you from creditors following the death of a spouse and provide you with ongoing tax relief afterward.
It cannot stop a foreclosure if you fall behind on your mortgage payments, but it can block the forced sale of your home if you declare bankruptcy. With the homestead exemption, Florida provides unlimited financial protection from unsecured creditors (emphasis on “unsecured”).
WHO’S ELIGIBLE?
Before you apply for the homestead exemption, make sure you meet the following requirements:
You own the home.
It’s your permanent residence or the residence of someone you can claim on your taxes.
You were living at the home on January 1st.
You have not homesteaded any other home in Florida.
You did not rent out the home for more than 30 days in the calendar year.
HOW DO YOU GET IT?
Hooray, you only have to file once. After the first time, your exemption is automatically renewed. Apply online on your property appraiser’s website or complete this application and take it to the office of your property appraiser. And don’t forget to file for portability using this form. You have three years from the date you sold the old house to transfer your tax savings to the new house via portability—and more than half of Floridians fail to apply! You’ll need ID, so be ready with all these docs, as applicable:
Florida driver’s license or state ID
Florida vehicle registration number
Florida voter ID
Declaration of domicile and residency in Florida
Name of employer
School addresses of dependent children
Bank statement
Proof of payment of utilities at the homestead address
TAMPA BAY PROPERTY APPRAISERS
Christy Clement is a certified Military Relocation Professional®, Pricing Strategy Advisor®, Seller Representative Specialist®, and Realtor® at Palermo Real Estate Professionals in South Tampa
