Florida Homestead Exemption Naples Florida Real Estate

Homestead Property Tax Exemption

On Jan. 29, 2008, voters approved an amendment to the Florida Constitution raising the Homestead Exemption to $50,000.

Florida property tax homestead exemption reduces the value of a home for assessment of property taxes by $50,000, so a home that was actually worth $100,000 would essentially be taxed as though it was worth only $50,000

If you are filing for the first time, be prepared to answer these questions:

  • Whose name or names were on the title on January 1?

  • What is your social security number and your spouse’s social security number?

  • Were you or your dependent living in the dwelling on January 1?

  • Do you claim residency in another county or state? Your property appraiser may ask for any of the following items to prove your residency:

  • Proof of previous residency outside Florida and date ended

  • Florida driver license or identification card number • Evidence of giving up driver license from another state

  • Florida vehicle license plate number • Florida voter registration number (if US citizen)

  • Declaration of domicile and residency date

  • Name of current employer

  • Address listed on your last IRS return

  • Dependent children’s school location(s) • Bank statement and checking account mailing address

  • Proof of payment of utilities at homestead address

Assessed Value $100,000.  The first $25,000 of value is exempt from all property tax, the next $25,000 of value is taxable, the third $25,000 of value is exempt from non-school taxes, and the remaining $25,000 of value is taxable.

IMPORTANT: If you are moving from a previous Florida homestead to a new homestead in Florida, you may be able to transfer, or “port,” all or part of your homestead assessment difference.

You should complete all required forms and applications for the exemption and file them with the county property appraiser. If the property appraiser denies your application, you may file a petition with the county’s value adjustment board.

Save Our Homes Assessment Limitation

After the first year a home receives a homestead exemption and the property appraiser assesses it at just value, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less.

This is called the Save Our Homes” (SOH) assessment limitation. The accumulated difference between your assessed value and the just (market) value is your SOH benefit. Even if the value of your home decreases, your assessed value may increase, but only by this limited amount. Your assessed value will never be more than the just value of your home.

Save Our Homes Portability Transfer

If you are moving from a previous Florida homestead to a new homestead in Florida, you may be able to transfer, or “port,” all or part of your homestead assessment difference If you are eligible, portability allows most Florida homestead owners to transfer their SOH benefit from their old homestead to a new homestead, lowering the tax assessment and, consequently, the taxes for the new homestead.

To transfer the SOH benefit, you must establish a homestead exemption for the new home within two years of January 1 of the year you abandoned the old homestead (not two years after the sale). You must file the Transfer of Homestead Assessment Difference (Form DR-501T) with the homestead exemption application. The deadline to file these forms is March 1.

Complete all forms and applications required for the exemption and file them with the county property appraiser. If the property appraiser denies your application, you may file a petition with the county’s value adjustment board.

Change or Transfer of Ownership

If a change in ownership occurs for a homestead property protected by the SOH cap, the property will lose the SOH benefit and will be subject to assessment at just value on the following January 1.

Florida law defines a change of ownership as any sale, foreclosure, or transfer of legal title or beneficial title in equity to any person.  Also, a loss or removal of homestead will trigger a reassessment and removal of the SOH benefit.

Some changes that will not trigger a reassessment are:

  • a change or transfer between spouses.

  • certain transfers upon death.

  • certain transfers when the same persons are entitled to the homestead exemption both before and after the transfer.

Call or Text Janet Berry at 239-450-1892 for all information regarding the Buying or Selling of Any Property in Southwest Florida