Homeowner Tax Exemption Florida: Know Your Rights

One of the best advantages of living in Florida is the state low-tax approach. In this context, homeowners have a powerful tool to reduce their estate tax burden, which is the homestead tax exemption. 

In this guide, you will discover how to minimize your tax burden and save a significant amount of money thanks to the homeowner tax exemption Florida. 

Florida Homestead Exemption – Explaining the Concept 

If you own a property in Florida and live inside the property as your permanent residency, you can apply for a homestead exemption. It is a useful tax benefit that can reduce the taxable value of a home by as much as $50,000.

Successful applicants receive tax exemptions within a certain price threshold, based on their home’s assessed value. 

Accordingly, the first $25,000 applies for the applicant’s property taxes. Plus, the additional 25,000 applies to any assessed value over $50,000 and only non-school-related taxes.

Homeowner Tax Exemption Florida – Understanding the Numbers 

Indeed, it is not easy to understand the requirements for Florida homestead exemption the first time you have contact with them. To further illustrate the subject, the best way is to use fictional examples.

First, for a home with an assessed value of $48,000, the first $25,000 is exempt from all property taxes. Then, the remaining $23,000 is taxed. 

Second, for a home with an assessed value of $70,000, the first $25,000 is exempt from all property taxes. Then, the next $25,000 is taxed, while the remaining $20,000 is exempt from all non-school-related property taxes. 

Lastly, for a home with an assessed value of $90,000, the first $25,000 is exempt from all property taxes. Again, the next 25,000 is taxed, and the following $25,000 is exempt from all non-school-related property taxes. Then, the remaining 15,000 in assessed value is taxed. 

Florida Homestead Exemption – Eligibility Criteria

As provided by the Florida Department of Revenue, applicants must submit the required paperwork for application between January 1st and March 1st of the first tax year. Also, they need to submit it to the property appraiser in the property’s county.

Consequently, anyone who fails to submit their application for homestead exemption by March 1st is waiving the exemption privilege for that tax year. 

To be considered eligible, the applicant’s property must be either his/her permanent residence or the permanent residence of a third party he/she can claim as a tax dependent. Plus, the applicant must ensure that he/she did not rent the property for more than 30 days in a given calendar year. 

According to the regulations associated with the Florida homestead exemption, either renting a property for more than 30 days for two subsequent years or more than six months can be considered abandonment. 

Regardless, the ideal approach is to consult with an expert tax attorney to assess whether you qualify for a homestead exemption in Florida or not. 

Do I Need to Reapply to Maintain a Homestead Exemption in Florida? 

One of the best features of the homestead exemption is that successful applicants do not have to reapply annually to maintain the benefit. In Florida, the state automatically renews the benefit for all exempt individuals, unless they choose to cancel their exemption.

However, exempt individuals must contact the state to inform if and when they are no longer eligible for the benefit. In this sense, the eligibility to a homestead exemption is gone when:

• The home where you live is no longer your primary residence
• You rent the property more than 30 days per year
• The ownership of the property is no longer yours, regardless of the reason (e.g., sale, lawsuit, death, marriage, etc.)

Exempt individuals that did not contact the state when they become ineligible are subject to a tax lien. 

Florida Homestead Exemption – Seeking Expert Guidance 

Although applicants can work their way through the application process, the best approach is to seek expert guidance when applying for a homestead exemption in Florida.

A legal expert will help you by assessing your case and providing all necessary guidance when you need to:

• Gather the required documentation
• File form DR-501 
• Submit the required form to the appraiser’s office (either via online, mail, or in-person)
• Meet the exemption criteria and comply with all legal parameters

Work with Marina Title to Obtain a Homestead Exemption in Florida 

At Marina Title, we have a team of legal experts to guide you through the process and help you to get a homeowner tax exemption. 

Waste no time and money with uncertainty. Call us today at (305) 901-5628 or send us an email at [email protected] to schedule a consultation.