If you’re planning to buy your first home in the Tampa Bay area, understanding Florida’s homestead exemption is crucial—it could save you thousands on property taxes! Let’s break it down so you can take advantage of this amazing benefit designed to make homeownership more affordable
What is a Homestead Exemption?
Homestead exemptions reduce the taxable value of your primary residence, effectively lowering your annual property taxes. This program is especially helpful for lower- and middle-income homeowners, offering a progressive approach to tax relief.
There are two main types of homestead exemptions:
Flat Dollar Exemptions: Deduct a set dollar amount from your home’s taxable value.
Percentage Exemptions: Reduce the taxable value by a specific percentage.
How Does the Florida Homestead Exemption Work?
When you own a home in Florida and make it your permanent residence, you may be eligible for up to $50,000 in homestead exemptions:
The first $25,000 is exempt from all property taxes.
The second $25,000 applies to the home’s assessed value between $50,000 and $75,000 but does not include school district taxes.
For example:
If your home is valued at $150,000, the homestead exemption reduces the taxable value to $100,000, significantly lowering your property tax bill.
Benefits of Florida’s Homestead Exemption
Save Thousands Annually: Depending on your home’s value, this exemption can save you a substantial amount each year.
Tax Increase Cap: After the first year, any annual increase in the assessed value of your home is capped at 3% or the percentage increase in the Consumer Price Index (CPI), whichever is lower. This is part of Florida’s Save Our Homes law.
Portability: If you sell your home and buy another, you can transfer (or “port”) some or all of your tax savings to your new home.
Who Qualifies?
To qualify, you must:
Own and occupy the home as your primary residence as of January 1 of the tax year.
Be a U.S. citizen or permanent resident.
Establish legal residency in Hillsborough County (or the county where your property is located).
Provide proof of residency, such as a Florida driver’s license, voter registration card, or permanent resident card.
If your property is held in a trust, the beneficiary with the right to occupy the home may also qualify. Special rules apply for mobile or manufactured homes that must be declared as real property.
When to Apply
Applications for homestead exemption are accepted year-round, but the statutory deadline is March 1. Late applications may be accepted up to 25 days after the yearly Notice of Proposed Property Taxes (TRIM) is mailed in August.
To apply, you’ll need:
The property address, tax bill, or deed/title.
Social Security numbers for all owners living on the property.
Proof of Florida residency (e.g., driver’s license, voter registration).
If you’re active-duty military, you can provide a Leave and Earnings Statement (LES) to prove Florida residency.
Key Takeaways for Tampa Bay Homebuyers
Florida’s homestead exemption can save you thousands of dollars annually in property taxes.
Make sure to apply by March 1 to maximize your savings.
If you’re moving within Florida, explore the portability benefit to transfer your tax savings to your new home.
Need help navigating the homeownership journey in Tampa Bay? As your Homebuyer Mentor, I’m here to guide you through every step—from understanding tax benefits like homestead exemptions to finding down payment assistance programs. Let’s make your dream of owning a home a reality!
Feel free to reach out if you have any questions or need assistance applying for your homestead exemption. Together, we’ll make the most of every opportunity Florida offers to first-time homebuyers!