Homestead Exemption & Save Our Homes
Florida residents are eligible to receive exemptions and additional benefits that can lower the amount of property tax they have to pay. Thousands of Florida homeowners save money on their property taxes each year by applying for the Homestead Tax exemption and the Save Our Homes assessment cap.
The taxable value is the assessed value of a property, land or asset on which taxes are calculated. It represents the value that is subject to taxation after any exemptions, deductions or assessment limitations have been applied. According to the Volusia County Property Appraiser, applications for homestead exemption must be submitted no later than March 1 of the year a homeowner wishes to begin the exemption.
Every Florida resident is entitled to at least $25,000 deduction on their taxable value. An additional Homestead Exemption is automatically applied to any property that receives the original $25,000 homestead tax exemption, totaling up to $50,000 deduction. To receive this, the property’s assessed value must be at least $75,000. If the assessed value is lower than $75,000, the additional homestead will be less than $25,000.
Homeowners can complete the 2024 application online or download it at VCPA.VCGOV.org/ Exemption/Homestead in PDF format. Applicants can fill it out before turning in or complete in person at one of the Property Appraiser’s four locations around the county. Visit the link to see a list of required documentation to have ready.
According to the Florida Department of Revenue, the homestead exemption automatically qualifies the property for the Save Our Homes Assessment Limitation. After the home receives a homestead exemption and the property appraiser assesses it at just value, the assessment for each following year can not increase more than three percent. To compare, non-homestead increases at up to 10 percent per year.
For example, a buyer purchases a home in September of last year. The previous owner owned the home for 12 years and had homestead exemption. The assessed value for last year was $110,000 and the taxable value was $60,000. After the deed transfer is recorded (change of ownership), the property appraiser will reassess the value. After the property appraiser reassessed the property as of January 1, the assessed value increased to $130,000. The new owners applied for and received homestead exemption, lowering the assessed value to $80,000, increased from the previous year. Next year, the Save Our Homes benefit will take effect, so the assessed value can not increase more than three percent ($3,900).
New buyers typically face dramatically increased property taxes, in comparison with the previous owner. Property appraisers say that 11 years of positive value growth in the Florida real estate market has resulted in the largest Save Our Homes cap benefits since it started in 1995.
A new state law was recently proposed, House Bill 295 and Senate Bill 380 would require online listings of residential property to include a property tax estimator tool, which calculates the property tax that would be due on the property at current rates. It also would prohibit printed listing materials and social media posts produced by real estate sales agents from including the current owner’s property taxes.
FAQ
If I move, does my homestead exemption automatically transfer to the new property? By law, homestead exemption is not transferable. If you move, you must file a new application within
the county of your new residence.
How many days out of the year does someone have to live in Florida to be eligible for homestead exemption? You must reside at the property as your primary residence. You have to declare Florida as your permanent residence. If you vote, you must vote in Florida. If you drive, you must have a Florida driver’s license. Your home address on your federal tax return should be Florida.
