Homeowners who buy a primary residence can enjoy a substantial tax break called “homestead exemption.” This exemption can save you a significant amount of money on your annual tax bill!

You are entitled to a Homestead Exemption if, as of January 1, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you. To be eligible for a homestead exemption, you must own and occupy your home as your permanent residence on January 1. 

·  Each individual or family unit is entitled to ONE homestead exemption. If you or your spouse claim(s) residency at another location in Florida or in another state and benefit(s) from a tax credit or exemption on property you own at another location in Florida or in another state, you are not eligible to file for homestead exemption in another County unless or until the other exemption/benefit is relinquished.

A homestead exemption essentially reduces your assessed value by up to $50,000 (50K if married, 25K if single) which makes the “taxable value” of your home $50,000 less.

$25,000 of the $50,000 is a full reduction of the taxable value of your home.  The second part of the homestead exemption allows for an additional $25,000 off the assessed value of your home as it relates to the various parts of the millage rate except the portion of your taxes attributed to schools.

As a quick example would beas follows:

Assessed Value of Your Home:       $300,000

Homestead Exemption (part 1)      - $25,000

TaxableValue for the School

Portion of Millage:                        $275,000

Homestead Exemption (part 2)     - $25,000

Taxable Value for All Portions

of Millage except School:              $250,000

FIRST YEAR OF TAXES ON A NEWLY CONSTRUCTED HOME

If you buy a newly constructed home, it’s important to understand how the county will calculate your assessed value for the first year the home was built versus the following years as the tax bill will be significantly different.

· For the year in which your home was built and closed, your tax bill will classify your property as unimproved or vacant property—or in simple terms, just the value of the land.

· The tax bill for the calendar year after your home was built will classify your home as improved property and will therefore be based on the lot and the home.

Since the value of the lot only on which your home is built is less than the overall value of your home on the lot, the tax bill for the first calendar year of ownership will be significantly less than the following years.

“SAVE OUR HOMES”AMENDMENT AND PORTABILITY

The “Save Our Homes” regulation, usually called SOH, helps current property taxpayers by capping increases in tax assessments from one year to the next. SOH was put into place to help those property owners in areas where values are rapidly increasing.  The SOH keeps these assessments from increasing by a) more than three percent, or b) more than the increase in the consumer price index, whichever is lower. It only applies to Florida residents who use the home as a primary residence and qualify for a homeowner’s exemption. However, this rule may artificially deflate the taxes paid on an existing home because the taxes will be reset to the updated present value once the home sells.

The portability part of SOH is a tremendous savings to homeowners in Florida that wish to buy a different home (assuming a primary residence).  Portability allows a property owner to transfer the savings in assessed value.

You should apply for your SOH transfer at the same time youapply for your new homestead exemption. Again, the deadline is March 31 of thesecond calendar year. You can learn more about transferring SOH caps and findthe forms at the Florida Department of Revenue.

COUNTY LINKS

Duval County Exemption Info

St Johns County Exemption Info