The Florida homestead exemption is a property tax break that is offered based on your home’s assessed value and provides exemptions within a certain value limit. Homestead exemption can reduce the taxable value of your home by as much as $50,000 if the property is your primary residence.
There are specific requirements for filing for your exemption for 2024:
*You must be the property owner
*You must occupy the property by January 1st of 2025
*The property must be your primary residence
*The property may not have been rented for more than 30 days in a calendar year. (Renting the property for more than 30 days for two years consecutively or for more than six months in a year is considered “abandonment” of your Florida homestead exemption.
In 1995 the Save Our Homes Amendment under section 193.155 (1) of the Florida Statues provides that properties with homestead exemption have a “cap” on property tax increases of 3% of the assessed value per year. This amendment was enacted to prevent the likelihood of homeowners on fixed incomes having their taxes increase to the point they could no longer afford to keep their home.
This amendment is a critical part of utilizing homestead portability in Florida. If you purchase a new primary residence in Florida, you can transfer the savings to your new home.
For example, if you have owned your current home for a period of years and the homestead benefit you are receiving is $100,000 that savings can be transferred to your new home and can/will provide a great tax saving for your new home. You can only keep your full benefit, however if your new home is of equal or greater value than your previous home. If you downsize, you will receive a prorated benefit based on your new home’s market value divided by your old home’s market value.
It’s important to know that homestead portability is not automatic. You have to apply for it. For more information review the Property Appraiser’s website for your County.
Kerry Gaby, Sr Loan Officer
Bell Bank Mortgage
NMLS #641778
850-567-4144
Gabyteam.com
