Homestead Tax Exemption for Dummies

  • Bianca Ungerman
  • 08/22/19
 

A quick summary

Homestead tax exemptions exempt a certain dollar amount or percentage of home value from property taxes. They’re called "homestead" exemptions because they apply to primary residences, not rental properties or investment properties.
 
In short: You must live in the home to qualify for the tax break. (Smart Asset)



Florida's Homestead Tax Exemption

Under the Florida Constitution, Florida homeowner can receive a homestead exemption up to $50,000. 

The first $25,000 in property value is exempt from all property taxes, including school district taxes. 

The additional $25,000 exemption is available for non-school taxes and applies only to the assessed value between $50k-$75,000.




Save-Our-Homes Amendment

The Save-Our-Homes Amendment (1992) caps the amount of appreciation that the taxing authorities can tax.
 
Regardless of how much the property appreciates, the value that is assessed for tax purposes cannot exceed 3 percent of the prior year's value
 
The protection offered by the Save-Our-Homes Amendment is lost when the home is transferred to a new owner. (Deedclaim)

 

There are three requirements to qualify for homestead protection under Florida law.

1) A residency requirement: only Florida residents can claim Florida homestead exemption. To become a Florida resident, a person must reside in Florida with the intent of residing in Florida permanently. 
 
2) An acreage limitation: if the residence is located within a municipality, only one-half an acre can be protected; if the residence is located outside a municipality, up to 160 acres can be protected.
 
3) "Owned by a Natural Person” Limitation: If the property is owned by a corporation or a limited liability company, for example, it will not qualify for Florida homestead protection.

 
 

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