Florida Real Estate Taxes vs. Homestead Exemption: What Buyers Should Know

Buying a Florida home? The Homestead Exemption could save you thousands.

Here’s how it works—and how it compares to standard real estate taxes.

What Is the Homestead Exemption?

A tax benefit for Florida residents who own and occupy their home as a primary residence.

It reduces the taxable value of your property by up to $50,000.

Standard Property Taxes (Without Exemption)

• Based on full assessed value
• No cap on annual increases
• Higher tax burden year-over-year

Example:

• Home value: $400,000
• Millage: 2%
• Taxes: $8,000/year

With Homestead Exemption

• First $25K exempt from all taxes
• Second $25K exempt from non-school taxes
• 3% cap on annual assessed value increases (Save Our Homes Act)

Same home:

• $400,000 value → $350,000 taxable
• Taxes: Closer to $7,000/year (or less depending on exemptions)

Who Qualifies?

• Must own the home by January 1
• Must occupy it as your primary residence
• Must file by March 1 the year after purchase
• U.S. citizens and some permanent residents

How to Apply

1. Wait until after you close
2. Visit your county property appraiser’s office (many have online forms)
3. Submit by March 1st

Bring:

• Florida driver’s license
• Utility bill
• Vehicle registration
• Property deed or closing statement

Bonus: Portability

If you’re moving from another Florida home with Homestead, you may transfer some of your tax savings to the new property.

Called “Portability,” it can reduce your new assessed value and save more.

Final Thought

Don’t overpay property taxes in Florida.

📞 Call Michael Renick at 941.400.8735 to understand your eligibility and file your Homestead Exemption on time.

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