https://youtu.be/ewCUP9HMj_I

If you bought a home in 2020, applying for this exemption is a no-brainer.

What is homestead exemption? How do you qualify for it, and what are its benefits?

Eligibility Requirements

There are multiple criteria you need to meet to qualify, but the main one is that the property for which you’re seeking this exemption must be your primary residence. If the property is a rental or your second home, you’ll be ineligible; if you don’t live in Florida for at least six months and a day during the calendar year, you’ll also be ineligible. Additionally, you have to be a U.S. resident. 

Benefits of Homestead Exemption

At 0:53 in the video above, you can see an example of a property tax bill that will help you better understand what this exemption does for you and how it will show up on your records. On this example bill, there are different millage rates, which are basically calculations based on a property’s market and assessed value. For the school millage rates, there’s a $25,000 deduction, while all other millage rates below it carry a $50,000 deduction. The homestead exemption’s main benefit is that it will save you on your property taxes every year. 

Another big benefit is that, on a homesteaded property, the appraiser cannot increase the value more than 3% in a given year. This would be highly beneficial in our market like ours, where we are seeing homes appreciate at a rapid clip; the appraiser can raise the value of a non-homesteaded property as much as they want based on the sales. 

The appraiser cannot increase the value of a homesteaded property more than 3% in a given year

To apply for this exemption, you must apply by March of the following year.

So, for those of you who purchased a home in 2020, the deadline to apply is March 1, 2021. That said, I certainly don’t recommend waiting that long—go ahead and apply now while it’s fresh on your mind. There is also something called portability, where you can sell one property and move your tax savings to another property, and I suggest looking further into it. 

Hopefully, this overview of the homestead exemption was helpful. If you have further questions about it or anything else concerning real estate, please give us a call or send an email. We’re always happy to provide more info or point you to the resources you need.