Florida’s Homestead Exemption
Florida Homestead law provides property tax relief to Florida residents who own and occupy their primary residence as their permanent home. It grants a significant exemption on the assessed value of a home for property tax purposes, making it an essential benefit for homeowners in Florida.
In addition to the property tax exemption, the Florida Homestead Exemption also provides protection against creditors. Under Florida law, a homeowner’s primary residence is protected from forced sale to satisfy most creditors. This means that if a homeowner faces financial difficulties, their primary residence cannot be taken away to satisfy a debt, except in certain cases such as unpaid taxes or mortgages.
It also has provisions for spouses and heirs. In the event of the death of a homeowner, the property may pass to the surviving spouse or heirs without the property being reassessed for property tax purposes, provided they continue to use the property as their primary residence.
According to the Florida Department of Revenue, “Property owners in Florida may be eligible for exemptions and additional benefits that can reduce their property tax liability. The homestead exemption and Save Our Homes assessment limitation help thousands of Florida homeowners save money on their property taxes every year. Further benefits are available to property owners with disabilities, senior citizens, veterans and active-duty military service members, disabled first responders, and properties with specialized uses.” If you own a property and make it your permanent residence as in Florida Domicile, you may be eligible to receive a homestead exemption, decreasing your property’s taxable value.
The Department of Revenue’s website has more information about property tax benefits for homestead properties.
The Homestead Exemption
In the state of Florida, a $25,000 exemption is applied to the first $50,000 of your property’s assessed value if your property is your permanent residence and you owned the property on January 1 of the tax year. This exemption applies to all taxes, including school district taxes. An additional exemption of up to $25,000 will be applied if your property’s assessed value is between at least $50,000 and $75,000.
This exemption is not applied to school district taxes.
Your homestead exemption will renew annually as long as you continue to qualify for the exemption. To qualify for the Homestead Exemption in Florida, the homeowner must be a permanent resident of the state and own and occupy their primary residence as of January 1st of the tax year. The homeowner must also file for the exemption by the deadline set by the county property appraiser, which is typically in March.
Save Our Homes Assessment Limitation
In Florida, we have the Save Our Homes assessment limitation act. After the first year a home receives a homestead exemption and the county property appraiser assesses it at just value, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less.
Through Florida’s Save Our Homes Cap property assessment, increases are limited to 3% annually. Even if the value of your home decreases, the assessed value may increase, but only by this limited amount. The assessed value will never be more than the just value of your home.
Talk with Naples Attorney James Nici
The Homestead Exemption act, as well as the Save Our Home act, offer significant benefits for homeowners in Florida by providing property tax relief and protection against creditors. Homeowners who meet the eligibility requirements should take advantage of the exemption by filing for it before the deadline to ensure they receive the benefits for the tax year.
Discuss with Attorney James Nici about establishing Florida domicile as well as making sure you are getting the full advantages that Florida domicile offers.
Based in Naples and headed up by attorney James Nici, Nici Law Firm offers legal guidance in the:
- Estate planning
- Estate administration
- Asset protection
- Probate services
- Business Planning
- Florida Domicile
Nici Law Firm serves clients in the towns of southwest Florida: Naples, Bonita Springs, Marco Island, Ave Maria, Immokalee, Estero, Fort Myers, Cape Coral, and Sanibel. Contact Nici Law at 239-449-6150