St. Augustine Real Estate Blog: Florida Homestead Exemption

One of the many benefits to living in the state of Florida is our tax laws. Florida is relatively unique when it comes to real estate and tax laws. Homestead Exemption is a very crucial part of owning a home and can provide many benefits to homeowners. However it is not as straightforward as one may think.

Benefits of a Homestead Exemption

As a Florida resident and homeowner, a property owner is entitled to a Homestead Exemption. Essentially, this is the act of registering your primary residence with the state government for tax purposes. After registering, the benefits of homesteading are numerous.

On the most basic level, a homestead exemption entitles homeowners to a deduction of $25,000 off of their property’s assessed value. This in turn lowers the tax burden of the home and results in tax savings.

If one’s home is worth at least $75,000, he or she will receive an additional $25,000 deduction from the assessed value of the home, further increasing tax savings. This additional deduction, however, does not apply to school tax levies.

Additionally, pursuant to the Save Our Homes Amendment to the Florida Constitution, the assessed value of one’s homestead property cannot increase more than 3% per year.

What Qualifies as a Homestead Property?

Pursuant to Florida law, the definition of a homestead property is very specific.

1. Owner must hold the legal or beneficial title

a. Note: Can be owned by a trust, but not a corporation

2. Must be the permanent residence of the owner. This is defined as “that place where a person has his or her true, fixed, and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning.”

3. Only applies to the portion of property that is classified and assessed as owner-occupied

a. Note: Mixed-use properties only receive exemption on occupied portion

4. Applies to ONE property

How to Apply for Homestead Exemption

To apply for Homestead Exemption, it is fairly simple. Essentially, you must bring the homestead exemption application to the county Property Appraiser by March 1st of the tax year for which the exemption is sought. For example, to receive a 2014 homestead exemption, you must have filed by March 1st, 2014.

If one moves into a new home after January 1st, then one would have to wait until the following tax year for exemption.

The renewal process is generally automatic and you do not need to reapply on an annual basis, unless relocated.

If no longer entitled for exemption, it is the responsibility of the filer to notify the Property Appraiser’s office and notify them of his or her change.

All members of Team Johnson of Watson Realty Corp are true Florida residents. We each own our own homes and understand the real estate law both from a professional and a personal standpoint. Who better to help you than your soon to be neighbors. Give us a call to get the ball rolling. We would welcome an opportunity to be your real estate resource and not just be your real estate agents for the sale but rather your real estate agents for life. Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com