Understanding the Homestead Exemption and Portability for Florida Homeowners

For homeowners in the state of Florida, the Homestead Exemption can be a valuable benefit. This exemption limits the increase in property taxes on your primary residence to just 3%, offering significant savings. In this blog post, we'll explore what the Homestead Exemption is, who is eligible for it, when to file for it, and how to take advantage of this tax-saving opportunity.

What is a Homestead Exemption?

In Florida, the Homestead Exemption is a property tax benefit available to homeowners who use their property as their primary residence. This exemption caps the annual increase in property taxes at 3%, providing homeowners with some financial relief. It's important to note that there are other exemptions you may qualify for based on your specific circumstances.

Eligibility and Deadline

To be eligible for the Homestead Exemption, you must be a Florida resident, and the property must serve as your primary residence. If you purchased your home in 2022, the deadline to apply for the Homestead Exemption is March 1, 2023. Keep in mind that you must be living in the home by January 1 for the exemption to take effect in the upcoming year; otherwise, it will apply the following year.

When to File for Homestead Exemption?

Filing for the Homestead Exemption is a crucial step in ensuring you receive this valuable tax benefit. Once you've received the deed for your new home, which typically arrives in the mail about 30 days after closing, make sure to update your driver's license and vehicle registration with your new address. Then, you can proceed to file for the Homestead Exemption. It's advisable to file as soon as you receive the deed instead of waiting for the deadline to avoid any potential oversights.

How to File for Homestead Exemption?

Filing for the Homestead Exemption is now more convenient than ever. You have the option to apply online or in person at your local Tax Collector's office. Whether you're in Duval County or St. Johns County, you can find detailed information on what documents are required for filing on the respective county websites. The good news is that once you've been granted the Homestead Exemption, it renews automatically as long as you continue to own and occupy your primary residence.

Tax Portability

If you've recently sold a home as part of your new home purchase, you may be eligible for additional tax savings through Tax Portability. It's important not to overlook this opportunity when filing for your new Homestead Exemption, as it can lead to significant savings on your property taxes. For a more in-depth understanding of Tax Portability, you can refer to our detailed article on the topic.

The Homestead Exemption in Florida is a valuable benefit that can help homeowners save on property taxes. Understanding the eligibility criteria, filing deadlines, and the option for Tax Portability can maximize your tax savings. By staying informed and taking advantage of these opportunities, you can enjoy the financial benefits of being a Florida homeowner.