Understanding Florida’s Homestead Exemption

Owning a home in Florida comes with plenty of advantages — sunshine, no state income tax, and strong property values. But one of the biggest financial benefits available to Florida homeowners is the Homestead Exemption. It’s a property-tax savings program designed to make owning and keeping your primary residence more affordable.

What Is the Florida Homestead Exemption?

The Homestead Exemption is a constitutional benefit that reduces the assessed value of your primary residence for tax purposes. In simple terms, it lowers the portion of your home’s value that is subject to property taxes.

If you qualify, the exemption provides:

• An initial $25,000 exemption off your home’s assessed value, which applies to all property taxes.

• An additional $25,000 exemption on the portion of your home’s value between $50,000 and $75,000, which applies to non-school taxes.

For many homeowners, that means annual savings ranging from a few hundred to more than a thousand dollars, depending on the home’s value and local tax rates.

Who Qualifies

To qualify for the Homestead Exemption, you must:

1. Own the property as of January 1 of the year you apply.

2. Use the home as your permanent, primary residence.

3. File an application with your county property appraiser by March 1.

This exemption is for full-time Florida residents only. Vacation homes, investment properties, or rental houses do not qualify.

Once your exemption is approved, it renews automatically each year as long as you continue to occupy the home as your primary residence.

Additional Benefits You Should Know

Save Our Homes Cap:

When you receive the Homestead Exemption, the assessed value of your property can’t increase by more than 3% per year (or the rate of inflation, whichever is lower). Even if your market value rises significantly, this cap limits how much your property taxes can go up each year.

Portability:

If you sell your home and buy another one in Florida, you can transfer (“port”) up to $500,000 of your capped value savings to your new homestead, as long as you do so within three years. This helps long-time homeowners move without losing the benefit of years of tax savings.

Why It Matters

For homeowners, the Homestead Exemption makes owning your home more affordable and predictable over time. The combination of lower taxes and the Save Our Homes cap helps protect you from sudden increases when property values rise.

For buyers, applying for the exemption should be one of the first things you do after closing. It can immediately reduce your yearly costs of ownership.

For sellers, having an existing homestead on your property can be a selling point. Buyers often look at overall affordability, and lower taxes can make a home more attractive in today’s competitive market.

How to Apply

You can apply for the Homestead Exemption through your county property appraiser’s office. Most offices now allow online applications. You’ll need:

• Proof of ownership (your recorded deed).

• Proof of permanent Florida residency (driver’s license, voter registration, or vehicle registration).

• Your Social Security number and, if applicable, your spouse’s information.

The deadline to file each year is March 1. If you purchased a home recently, it’s worth applying right away to ensure your exemption takes effect for the next tax cycle.

The Bottom Line

The Florida Homestead Exemption is one of the simplest yet most powerful tools for homeowners to reduce their property taxes and protect their long-term financial stability. Whether you’ve just moved to Florida or have owned your home for years, understanding and maintaining your exemption can save you money year after year.

If you have questions about how the Homestead Exemption affects your property, or if you’re thinking about buying or selling in the Jacksonville or St. Johns area, I’d be happy to walk you through the process and help you plan ahead.