Florida Homestead Exemption: What It Is & How To File

Owning a home comes with many benefits, such as the opportunity to build equity over time. However, home ownership can also be expensive, between your mortgage payment, homeowners’ insurance, repairs, and basic maintenance. In addition, you must also pay property taxes on your home, which can add up to thousands of dollars each year.

In Florida, you can get some relief from the burden of property taxes by filing for a homestead exemption. If the house is your primary residence, you can get a reduction of up to $50,000 in assessed value, saving you a substantial amount of money. You must fill out and file a form with your county property appraiser by March 1 to receive the exemption.

At Eaton Realty, we help people in West-Central Florida buy and sell property. As licensed real estate agents, we can work with you to find the home of your dreams. To learn more about our real estate services - including for landlords and renters - reach out to talk to a team member.

Want to learn even more about buying your first home? Contact us to speak with an experienced Hillsborough County real estate agent.

What Is the Florida Homestead Exemption?

The Florida homestead exemption is essentially a property tax break. Depending on the assessed value of your home, you can reduce its taxable value by as much as $50,000. The goal of this exemption is to reduce the often heavy burden of property taxes on Florida homeowners.

The homestead exemption is available to property owners in Florida IF the property in question is their permanent residence or the permanent residence of their dependent. In other words, you cannot get this property tax break if you own a vacation home in Florida. The house in question must be your primary residence.

The first $25,000exemption applies to all property taxes, including school district taxes. If your house value is assessed at $50,000 or above, then you qualify for an additional exemption of up to $25,000. This additional exemption can only be applied to non-school taxes.

An example may help explain how this exemption works. Assume that you own a home that is valued at $200,000 and is your primary residence. The first $25,000 of the value of the home would be exempt from all property taxes, while the next $25,000 would be fully taxed. The next $25,000 in value would be exempt from property taxes other than school taxes. Effectively, your $200,000 house would be taxed as though it were valued at $150,000 for all taxes and $175,000 for school taxes.

Because property taxes are based on the assessed value of your home, this exemption can save you a significant amount of money in property taxes. In the city of Tampa, for example, the current property tax rate (millage rate) is 6.21 (although Mayor Jane Castor has proposed raising the mill rate to 7.21). Without the homestead exemption, your property taxes for a $200,000 house would be $1,242 annually for the city of Tampa alone. With the exemption, your city property taxes would be $931.50 annually.

These savings may not seem like a lot, but they can add up over time - particularly when you consider that you will also be paying other types of property taxes, such as for the local school district. That is why the Florida homestead exemption is so important for property owners throughout the state.

In addition to the basic homestead exemption, property owners with disabilities, veterans, active duty military service members, senior citizens, and disabled first responders may be entitled to further benefits. In addition, some properties with specialized uses are eligible for benefits.

Importantly, after the first year you receive a homestead exemption, the assessment for each following year cannot increase more than 3%, or the change in the Consumer Price Index (CPI), whichever is less. This is known as the Save Our Homes (SOH) assessment limitation. You may be able to transfer or “port” all or part of your homestead assessment difference if you move from one Florida homestead to another.

These property tax issues can be complicated. If you have questions about the Florida homestead exemption, the SOH cap, or any other issue related to your taxes, reach out to your accountant or tax preparer for more information.

How Can I File for the Florida Homestead Exemption?

Applying for the Florida homestead exemption is relatively easy. The Florida Department of Revenue has a form, DR-501, that can be filled out and submitted online, printed and mailed to the Hillsborough County property appraiser, or completed at the Hillsborough County property appraiser’s office on Kennedy Boulevard in Tampa.

To qualify, you must meet the following criteria:

1. You own the property.
2. The property you are claiming the exemption for is either your permanent residence or the permanent residence of a person you can claim as a dependent on your taxes.
3. You lived in the property on January 1 of the tax year for which you want to claim the exemption (i.e., if you want to claim the exemption for 2023, then you must have resided in the home on January 1, 2023).
4. The property that you want to claim the exemption for must not have been rented out for more than 30 days, as Florida property owners are considered to have abandoned the homestead exemption if they rent out a property for more than 30 days in 2 consecutive years or for more than six months.

You must file a homestead exemption application with the local property appraiser by March 1 of the year that you want to claim the exemption. Late filings may be accepted if you can provide proof of extenuating circumstances.

As part of the application process, the property appraiser may ask for certain documentation, including:

Proof of previous residency outside Florida and the date that residency ended

A Florida driver’s license or identification card number

Evidence that you gave up your driver’s license from another state

Florida vehicle license plate number

Florida voter registration number, if you are a U.S. citizen

A declaration of domicile and residency date

The name of your current employer

The address listed on your last IRS return

The location of your dependent children’s school(s)

A bank statement and checking account mailing address

Proof of payment of utilities at the homestead address

If you are filing for the first time, then you will typically be asked to provide information about the names on the property’s title, your Social Security number, whether you were living in the property on January 1, and if you claim residency in another county or state.

Remember: the Florida homestead exemption is only available for primary residences, so the property appraiser wants to ensure you are not attempting to claim it for a vacation home. It also cannot be used for rental properties, so you should not try to claim it for an investment property that does not qualify for the exemption.

Suppose you are applying for additional exemptions - such as those for people who are older, disabled, or a veteran. You may be required to submit further proof to qualify for these benefits, such as documentation of your disability.

Finally, once you qualify for the homestead exemption, you do not have to apply again for the same property. The homestead exemption will be automatically renewed each year and may be transferred through the SOH program if you buy a different primary residence in Florida. The state will mail you an exemption renewal each year at some point after January 1.

However, you must notify the state if you are no longer eligible for the exemption. Ineligibility may occur if the home is no longer your primary residence, if you rent the property out for more than 30 days in a year, or if the property ownership has changed. If you fail to do so, then you could be subject to a tax lien that carries both interest and penalties.

Work with Eaton Realty to Find Your Next Home

Hillsborough County is a great place to live - but it can be expensive. The Florida homestead exemption can help to relieve some financial strain by offering a way to lower the taxable value of your home. In this way, you can pay less in property taxes each year.

Based in Lithia, Eaton Realty represents clients throughout Hillsborough County. With more than 20 years of experience in the Tampa real estate market, our Tampa realtors can offer advice on a range of factors that affect homeownership in Florida. If you’d like to learn more, fill out our online contact form or give us a call at 813-672-8022 to talk to a member of our real estate team.

The information disclosed above does not constitute legal or financial advice. Use this information at your discretion.