Monday, February 24, 2020 / by Carl Gentile
Everything you need to know about Florida Homestead ExemptionFor many home buyers, the process of buying a home is a lengthy, but exciting one! From starting your loan application to making an offer and then finally closing, every buyer will encounter what feels like endless amounts of paperwork, forms, and signing. But once you leave the closing table with your keys in hand, there is still many important things to do, one of them being filing your Florida Homestead Exemption!
The Florida Homestead exemption is an enormous benefit of owning a home in Florida! It's great that in Florida we do not have state income tax, which is one of the many reasons so many individuals are looking to gain Florida residency! The Florida Homestead Exemption reduces the assessed value of your property, therefore reducing the amount of property tax you pay! Who wouldn't want to save money!?
What is the Florida 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.
When Qualifying for the Homestead Exemption, you will need the following documents for all property owners applying:
Documents should reflect the address of your homesteaded property. Homestead exemption also qualifies you for the 3% Cap Save our Homes! Which means, your Florida Real Estate Taxes can only rise by a maximum of 3% in a given year! Huge savings in the long term!
Do I need to file for Florida Homestead Exemption every year?
No, your exemption autimatically renews an stays ont he property for as long as you make it your primary residence! Each year you will receive a postcard in the mail regarding the exemption. You only return the postcard if you are looking to remove the exemption from the property. You will receive this card in January. Keep it in your home file as your receipt for the renewal.
I'm military and I received orders to PCS and plan to rent my home, can I keep my exemption?