Good Faith Home Buyer

Florida Homestead exemption. What is it?

I am sure you come across words like Homestead, property tax exemption many times. So what is Florida homestead exemption? After you purchase a home, you make that home your permanent residence. Then, homeowners are eligible to receive a homestead exemption.

This homestead exemption is a tool that reduces the taxable value of your home. As a result, it benefits homeowners by reducing the burden of property tax.

 

How Much Could Homeowners get Florida Homestead Exemption?

As you know, laws always change. I can tell you the current exemption. If you read this article many years later, it could be different. Always consult with experts.

 

As of now 2021, the first $25,000 applies to all property taxes including school district taxes.

So if your home’s assessed value is $50,000, the first $25,000 is exempted, so your property tax would be calculated based on the value between $25,000 and $50,000.

 

The additional exemption $25,000 applies to assessed value between $50,000 and $75,000 but this exemption doesn’t apply to school district taxes.

So the maximum exemption is $50,000. For value above $75,000, homeowners will pay the full taxes.  I can illustrate this better below.

 

Example 1 Mike’s Home – Assessed Value $45,000

For the first up to $50,000 assessed value, homeowners get $25,000 property tax exemption. So Mike would be taxed on the remaining value of $20,000.

 

Example 2 Sue’s Home – Assessed Value $85,000

For the first up to $50,000 assessed value, homeowners get $25,000 property tax exemption.

So the remaining value of $25,000 is taxable in the first $50,000

The additional $25,000 tax exemption applies to assessed value between $50,000 and $75,000 only to non-school taxes. So the remaining value of $10,000 is taxable.

The total taxable value is $35,000 for Sue’s home that is the assessed value of $85,000

You can see how this could reduce the burden of your property tax.

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Vectors from GreenStock

 

Where to Apply to Get Florida Homestead Exemption

 

To apply for Homestead property tax exemption, go to the property appraiser’s website in your county.

Fill out an application form and prove your residency by providing requested documents by March 1 of the year that you would like to qualify for tax exemption. To qualify for the homestead tax exemption on your 2021 taxes, you must do this paperwork by March 1st 2021.

 

 

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AXA travel insurance

Who is Eligible for Florida Homestead Exemption?

 

The property must be your primary residence in order to receive the homestead tax exemption.

You must have lived at the property on January 1 2021, if you want to claim the homestead tax exemption on your 2021 taxes. So you must be a primary resident of your property on January 1 of the year that you want to quality for homestead tax exemption.

If you have rented your property for more than 30 days, you won’t be eligible for the homestead tax exemption.

If you are moving to a new home, you can transfer previous homestead to a new home. You have 2 years window to transfer your homestead. You may be able to transfer all or part of your homestead assessment difference. You will have to apply to your county property appraiser.

Use every available tool to save your money and keep more money in your pocket.


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