The Homestead Exemption and the Save Our Homes (SOH) program are two programs designed to provide property tax relief to Florida homeowners.
Homestead Exemption
1. Basic Homestead Exemption:
- Florida law allows homeowners to claim a $25,000 exemption on the assessed value of their property for property tax purposes if the property is their primary residence.
- This means the first $25,000 of the property’s assessed value is exempt from all property taxes, including school district taxes.
2. Additional Exemptions:
- There is an additional $25,000 exemption applied to the value between $50,000 and $75,000 but it doesn't apply to school district taxes.
- Additional exemptions might be available for certain categories of people like seniors, veterans, and disabled individuals.
3. Eligibility and Filing:
- To qualify, a homeowner must establish their Florida home as their primary residence.
- Homeowners need to apply for the exemption with their local county property appraiser.
Click Here for a more detailed brochure about the Homestead Exemption.
Save Our Homes (SOH) Program
- Assessment Limitations:
- The Save Our Homes program caps the annual increase in the assessed value of a homestead-exempt property to 3% or the change in the Consumer Price Index (CPI), whichever is lower.
- This means that even if the market value of the home increases by a larger percentage, the assessed value for tax purposes will not increase more than the capped rate, keeping property taxes lower than they might otherwise be.
- Portability:
- Florida homeowners can transfer the accumulated tax savings from the SOH cap (the difference between the market and assessed value) when they sell their home and buy a new one. This is referred to as "portability" and it’s designed to shield homeowners from dramatic increases in property taxes when they move.
- Example:
- If a home is worth $300,000 and its assessed value is capped at $200,000 under SOH, the homeowner has an accumulated SOH benefit of $100,000. When moving to a new home, this $100,000 can be subtracted from the new home’s assessed value for tax purposes, reducing the property tax burden.
Click Here for a brochure describing the Save Our Homes Program.
Utilizing the Homestead Exemption and the Save Our Homes program, Florida homeowners can potentially save a substantial amount on their property taxes, safeguarding them from sharp tax increases and providing valuable tax relief.
