Florida Homestead Exemption: How It Works and When to Apply

Quick answer: Florida's homestead exemption can take up to $50,000 off the assessed value of the home you own and live in as your permanent residence, although the second $25,000 does not apply to school taxes. You must own and occupy the home on January 1, and you apply with your County Property Appraiser by March 1 of that year. Once you have it, the Save Our Homes cap limits yearly increases in your assessed value to 3% or the change in CPI, whichever is lower.

If you have recently bought a home in Florida, or you are about to, the homestead exemption is one of the first things to put on your calendar. This guide is for buyers and new homeowners in Palm Beach, Broward and St. Lucie Counties who want to understand what the exemption does, how the dates work and what happens when you sell and buy again.

I walk every buyer through this after closing, because missing the filing window means waiting another year for the savings.

What the homestead exemption is

The exemption comes from the Florida Constitution, Article VII, Section 6, and is carried out by Florida Statutes section 196.031. It reduces the assessed value of your primary residence before property taxes are calculated. It has two parts:

• The first $25,000 applies to all property taxes, including school district taxes.
• The second $25,000 applies to the assessed value between $50,000 and $75,000, and it does not apply to school district taxes.

That is why you often see the exemption described as "up to $50,000." A home with a lower assessed value may not use the full second portion. Your tax bill also depends on the millage rates set by the county, city and other taxing authorities, so the dollar savings differ from one address to the next.

Who qualifies

To qualify, you need to meet two conditions as of January 1 of the tax year:

1. You hold title to the property (alone, jointly, or in certain qualifying trusts).
2. You make it your permanent residence, the place you intend to live as your true home.

The property appraiser will ask for documents that support residence, such as a Florida driver license or ID showing the property address, vehicle registration, voter registration where applicable, and information about residency status for applicants who are not U.S. citizens. Requirements vary a bit by county, so check the application page for the county where the home is located.

A second home, a rental or an investment property does not qualify. You can only claim one homestead, and claiming a residency-based exemption in another state at the same time can create problems.

The dates that matter: January 1 and March 1

The timing trips up a lot of new owners, so here it is in order:

Date	What it means
January 1	You must own the home and live in it as your permanent residence on this date to qualify for that tax year.
March 1	Deadline to file the application with your County Property Appraiser for that tax year.
After March 1	Late filing may be possible in limited circumstances; otherwise the exemption starts the following year.

Example of how this plays out: if you close on a home in the fall and move in right away, you are in place on the following January 1, and you file by March 1 of that new year. If you close in February, you were not the owner on January 1, so your first eligible year is the next one, though many counties let you file early.

Most property appraisers accept applications online. Palm Beach, Broward and St. Lucie each have their own portal on the County Property Appraiser's website.

The Save Our Homes cap

Once your home has the homestead exemption, Florida Statutes section 193.155 limits how much its assessed value can rise each year. The increase is capped at 3% or the change in the Consumer Price Index, whichever is lower.

Over time, this can create a gap between your home's market value and its assessed value. That gap is often called the "Save Our Homes benefit," and it is the part that portability lets you take with you.

A few points to keep in mind:

• The cap applies to assessed value, not to the tax rate. If millage rates change, your bill can still change.
• Improvements such as an addition can be assessed and added to the value.
• The cap applies to homestead property. Non-homestead property has a different limitation under Florida law.

Portability when you sell and buy again

If you move from one Florida homestead to another, portability lets you transfer some or all of your accumulated Save Our Homes benefit to the new home, within limits and time frames set by law. You do not get it automatically. You request it by filing a portability application along with the new homestead application.

How much transfers depends on whether you are buying a more expensive or a less expensive home than the one you left, and there is a cap on the amount. Because the math can be detailed, I suggest asking the property appraiser's office for an estimate before you commit to the timeline of a move. If you are planning to sell, the home valuation page is a good place to start thinking about the numbers on your current home.

What happens to the assessment after a sale

This is the part buyers ask me about most. When a home changes ownership, the Save Our Homes cap from the previous owner does not transfer to you. The property is reassessed at its just value as of the following January 1.

In practice, that means the tax amount you see on a listing, which reflects the seller's exemptions and cap, may not match what you will pay. When I help buyers estimate their carrying costs, we look at the property's just value and current millage, not only last year's bill. You can read more about the buying process on my buyers page.

Rules change and every situation is different; confirm the details with your County Property Appraiser or a licensed tax professional. The Florida Department of Revenue also keeps a summary of property tax exemptions.

Frequently asked questions

When is the deadline to apply for homestead exemption in Florida?

The deadline is March 1 of the tax year. You must have owned and lived in the home as your permanent residence on January 1 of that same year. Applications are filed with the County Property Appraiser where the home is located.

Does the homestead exemption apply to school taxes?

The first $25,000 of the exemption applies to all property taxes, including school district taxes. The second $25,000, which applies to assessed value between $50,000 and $75,000, does not apply to school taxes.

Do I keep the seller's lower taxes when I buy a home?

No. After a change of ownership, the property is reassessed at just value as of the next January 1, and the previous owner's Save Our Homes cap does not carry over. Your own homestead and cap start from the new assessment.

Can I move my Save Our Homes benefit to a new home?

Florida's portability rules let you transfer some or all of your accumulated benefit to a new Florida homestead within time limits and a cap set by law. You must apply for it with the new homestead application.

Can I claim homestead on a rental or second home?

No. The exemption applies only to the property you own and occupy as your permanent residence. You can hold one homestead at a time.

Next step

If you are buying in Palm Beach, Broward or St. Lucie County and want help estimating what your taxes may look like after closing, send me a message through the contact page. I'll walk you through the dates and point you to the right property appraiser's office.

Gabriela Ramalho, PA · REALTOR® with Partnership Realty Inc. · Equal Housing Opportunity