If you own a home in Florida or are considering buying a home in Florida, you’ve probably heard of the homestead exemption. It’s a powerful tool that maximizes the value of your home and minimizes your tax burden.
If you bought a home in 2021, you can apply for Homestead by March 1, 2022.
What Is the Florida Homestead Exemption?
Florida is one of only nine states without a statewide income tax. As a result, the state relies heavily on property taxes to generate the necessary revenue to fund public schools, libraries, streets, roads, etc. And that’s where the homestead exemption comes in. At its core, it’s a tax break for homeownership, allowing you to reduce the taxable value of your home by as much as $50,000.
How Does the Florida Homestead Exemption Work?
The homestead exemption reduces the assessed value of your property, ultimately reducing the amount you pay. A $25,000 exemption is applied to your property’s first $50,000 value. This exemption applies to all taxes, including school district taxes. An additional exemption of up to $25,000 can be applied if your property’s assessed value is between $50,000 and $75,000. This exemption is not applied to school district taxes.
Here’s what the exemption for a $100,000 home would look like:
The first $25,000 would be fully exempt from taxes, the next $25,000 would be fully taxed, the following $25,000 would be exempt from all but school district taxes, and the final $25,000 would be fully taxed.
Who Qualifies for Homestead Exemption?
To qualify for homestead exemption, a property must be owned by a person, not a corporation, and the home must serve as a primary residence. The homeowners must also prove they lived in the house on January 1 of the tax year to be eligible for an exemption that year.
How Do I Apply for Homestead Exemption?
If owning property in South Florida is on your to-do list, the MJR Groupe can help.
With agents with extensive knowledge of in-demand neighborhoods, the MJR Groupe is well-equipped to help expectant residents find their ideal home in the Sunshine State.