Owning a home becomes a significant milestone for many individuals and families. But with the joys of homeownership come financial responsibilities, including property taxes. In Florida, you can take advantage of certain exemptions designed to provide relief from property tax burdens.
Two key provisions in this regard are the standard homestead exemption and the "Save Our Homes" (SOH) cap. Additionally, there are other property exemptions available to homeowners in the state. In this blog post, we'll explore into what these homestead exemptions entail and how they benefit homeowners across the Sunshine State.
The Standard Homestead Exemption
The standard homestead exemption is a provision in Florida law that offers you a reduction in the taxable value of your primary residence. To qualify, your property must be your primary residence as of January 1st of the tax year. This exemption typically exempts the first $25,000 of the assessed value of your property from taxation for all taxing authorities except for school district taxes, where a separate exemption applies of $25,000 for properties assessed values greater than $50,000.
Save Our Homes (SOH)
The Save Our Homes (SOH) amendment, passed in 1992 as a constitutional amendment, is a game-changer for Florida homeowners like yourself. It aims to provide long-term property tax relief by limiting the annual increase in the assessed value of a homestead property. Under SOH, the assessed value of your homestead property cannot increase by more than 3% or the percentage change in the Consumer Price Index (CPI), whichever is lower, each year. This provision prevents your property taxes from skyrocketing due to rapidly increasing property values, particularly in areas experiencing significant real estate appreciation.
Other Property Exemptions in Florida
In addition to the standard homestead exemption and the SOH provision, there are other property exemptions available to homeowners in Florida:
1. Additional Homestead Exemption for Seniors: Florida offers an additional homestead exemption for seniors aged 65 and older with certain income limitations. This exemption provides further reductions in property taxes for eligible senior homeowners, offering additional financial relief in their retirement years.
2. Disability Exemptions: Homeowners with disabilities may qualify for additional property tax exemptions in Florida. These exemptions vary based on the nature and extent of the disability and can provide significant savings on property taxes for eligible individuals.
3. Veterans Exemptions: Florida provides property tax exemptions for veterans who have served in the military. These exemptions may vary based on factors such as disability status, service-connected disabilities, and wartime service. Veterans and their surviving spouses may be eligible for various property tax exemptions, providing recognition and support for their service to the country.
4. Deployed Military Exemptions: Active-duty military personnel deployed outside of the United States may qualify for property tax exemptions in Florida. These exemptions provide relief for service members and their families while they are serving their country overseas.
5. Agricultural Exemptions: Property used for agricultural purposes may qualify for special property tax exemptions in Florida. These exemptions aim to support and promote agricultural activities in the state by reducing the tax burden on agricultural land and properties.
Homestead Exemption and Portability: Transferring Your Benefits When You Sell Your Primary Residence
As a property owner with both the Homestead Exemption and an accumulated SOH Cap, you have the opportunity to transfer (or "Port") the SOH Cap value, which can reach up to $500,000, to a new homestead property. This process, known as the "Transfer of Homestead Assessment Difference," allows you to carry over your accrued benefits. Remember, the annual deadline to apply for this benefit, along with any other property tax exemption, is March 1st. If you're a first-time Homestead Exemption applicant or seeking to apply for the Homestead Assessment Difference (Portability), you have the option to file online.
These additional property exemptions in Florida offer further opportunities for homeowners to reduce their property tax obligations based on specific circumstances or qualifications. Understanding the eligibility criteria and benefits of these exemptions can help homeowners maximize their tax savings and manage their property tax liabilities effectively.
About Author: Liz Kenneally, a seasoned Miami real estate agent, boasts extensive experience in the city's vibrant market. Specializing in sought-after neighborhoods including Coral Gables, Dadeland, Continental Park, East Kendall, Pinecrest, South Miami, and The Falls. Liz is fluent in both English and Spanish, ensuring smooth transactions for her diverse clientele. Contact her at 786-423-3348 or complete the simple EMAIL AGENT form located beside this blog content.