Learning About:
Florida Homestead Exemption
If you own a home or land you will be paying property taxes. Here in Florida, we don’t have a state income tax, so they try to make up a bit of the revenue with property taxes, which are collected on a county level. Each county has it's own method of assessing and collecting the taxes. Around 50% of public education and 30% of local government funding is from property taxes. The funds help operate public schools, libraries, medical services, parks and vital infrastructure. Also note, that only school buildings, churches, and government properties are exempt from paying property taxes in Florida. However, there are some great tax saving methods that can be applied to save you money, But first let's take a look at Paying your Taxes and how they are calculated.
Paying your Taxes...
Property tax is payable November 1 to March 31. Save money by taking advantage of early payment discounts. Many counties offer an early bird discount of up to 4% for paying a tax bill early; check with the individual county.
Florida Property Tax Rates
Property taxes are implemented in millage rates. For example, if a millage rate is one-tenth of a percent, then that would equates to $1 in taxes for every $1000 of your home's assessed value from your County Appraiser. There are a number of different authorities, including counties, municipalities, school boards and special districts that can levy these taxes. Since every property and county is different, check with your county's property appraiser to get your millage rate.
Wanna save some money?
Apply for Florida Homestead Exemption
If you made your property your PERMANENT RESIDENCE on or before January 1st, then you are entitled to a Homestead Exemption.
By law, January 1 of each year is the date on which permanent residence is determined.
Did you know....
In 2022, basic homestead exemption saved a Broward homeowner anywhere from $644 to $1,034 in annual tax savings for homes valued $75,000 or higher.
The Florida Homestead Tax Exemption reduces your home's taxable value by $50,000 (based on your home's assessed value at the time of purchase)
And there's more......
In this section, we dig a little deeper into the wonderful world of Florida Property Taxes and see the ways you can save money
SAVE OUR HOMES
Homeowners who receive the homestead exemption also benefit from the Save Our Homes assessment limitation, which caps increases in assessed value at 3% or the rate of inflation, whichever is lower. So even if you own a home in a hot housing market, your taxes won’t skyrocket.
Understanding Homestead for Florida Residents
All legal Florida residents are eligible for a Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if they qualify. The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. While a complicated formula is used to explain this -- as the additional $25,000 only applies to the non-schools portion of your tax bill -- the bottom line is that the basic homestead exemption saved a Broward homeowner in 2022 anywhere from $644 to $1,034 (depending upon your city's millage rate) in annual tax savings for all homes with a value of $75,000 or higher. Click Below to visit BCPA. to learn more.
Let's Save Some Money!!
DON'T FORGET TO FILE !!!
DEADLINE TO FILE is March 1st
Palm Beach Residents - Click the button below for more information about the County Tax Collector here in Palm Beach
PLEASE NOTE: Homestead Exemption does not transfer from property to property. If you had this exemption last year on another property and moved, you must file a new application for your new residence. Notify the Property Appraiser to cancel the exemptions on your former home. The sellers' exemptions will not carry over beyond the year of the sale: you MUST apply for your own exemptions.
Who qualifies:
You must reside in and make it your permanent home in that tax year (Example, purchase a home on or before Jan. 1, 2024 and apply for Homestead by March 1, 2024)
To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co-owners) must file on jointly held property. In the case of a married couple ("Tenants by the Entirety") or Joint Tenants with Right of Survivorship ("JTRS"), any one owner may qualify for 100% coverage -- although it is always highly advisable to have all eligible owner-occupants to file.
What you need to file:
Proof of ownership: In general, a recorded Deed held in the name(s) of the individual(s) applying for Homestead. If the property is held in TRUST, you will need a notarized Certificate of Trust or a copy of the Trust Agreement.
Proof of Permanent Residence: A Florida Driver's License or I.D Card for non-drivers, AND either a Florida Voter's Registration or a Power (FPL) or Water Utility bill for the property in at least one owner's name. Note: Non-US Citizens must also have proof of permanent residency.
For more information, please visit https://bcpa.net/homestead.asp
To receive the exemption you must fill out the application online (Form DR501), by March 1st. Once you apply, you are done and do not need to reapply each year.
The timely filing period for Homestead Exemption for 2024 is March 2, 2023 through March 1, 2024.
The timely filing period for Homestead Exemption for 2025 is March 2, 2024 through March 3, 2025.
Rules: You can only have 1 (one) exemption per property. You have to reside in the home full time, meaninig you can not use it on an investment property.
PORTABILITY: If you sold your old home and moved into a new one - you will go to the property appraiser's office and apply for Homestead exemption on the new home.
FUN Tidbit: Homestead was put in place originally to entice people to come to Florida - even if they had creditors after them. So, if they bought here in Florida, then their home here would be protected from the judgments.
The Florida Homestead Law refers not only to a single-family home as being protected from judgment creditors but also condominiums, co-op apartments, and certain mobile home lots if they qualify.
Example, In 2022, basic homestead exemption saved a Broward homeowner anywhere from $644 to $1,034 in annual tax savings for homes valued $75,000 or higher
Monitoring your Homeownership - You will need your 1st and last name, Property ID number and email address.
Owner Alert:
This property is currently registered for BCPA’s Owner Alert Notification. The owner(s) will be notified if a document is received by BCPA changing the ownership of this property.