How to use Florida’s tax exemptions to make your housing payment more affordable
BY THE PERK LENDING TEAM | August 11, 2023 | 3-minute read
Florida Property Tax Exemptions
Property taxes are an ongoing but necessary cost of homeownership. They fund the infrastructure, schools, and services that make your area a nice place to live. However, property taxes can increase each year. Thankfully, there are several tax exemptions Florida residents can take advantage of to reduce their tax bill.
How Property Taxes Are Calculated
From a tax perspective, each piece of property in Florida has three values: market value, assessed value, and taxable value. Each year, the county property appraiser determines the market value of your property and uses the following equation to calculate your tax bill:
Assessed Value = Market Value - Assessment Limitations
Taxable Value = Assessed Value - Tax Exemptions
Annual Tax Bill = Taxable Value x Millage Rate
As a note, whenever a property changes ownership in Florida, it is reassessed at its current market value as of January 1 of the following year.
Florida Homestead Exemption
The Florida Homestead Exemption lowers the taxable value of your primary residence by up to $50,000. The first $25,000 applies to all property taxes. The remaining $25,000 applies only to non-school taxes on assessed values between $50,000 and $75,000.
As an example, let’s assume the assessed value of your property is $75,000. The first $25,000 is exempt from all property taxes. The value between $25,000 and $50,000 is fully taxable. The final $25,000 is exempt from non-school taxes, reducing the fully taxable value by $50,000.
If you own and occupy your home on January 1, you can apply for the exemption by March 1 to have it reflected in that year’s taxable value. To apply for Florida's homestead exemption, you must complete an application and submit it to your county property appraiser's office.
Save Our Homes Assessment Limitation
After the first year a property receives the homestead exemption, future assessment increases are limited to the lesser of 3% or the percent change in the Consumer Price Index. The accumulated difference between the market value and the assessed value can then be transferred to a new home in Florida if you decide to move.
Florida’s Tax Timeline
Below is a timeline of Florida’s property tax determination and billing process.
January 1 – Property values are assessed by government appraisers.
March 1 – Deadline for homeowners to submit exemption applications.
June 1 – Total taxable value of all properties is reported to local taxing authority.
August 5 – Local taxing authorities propose initial millage rates to appraisers.
August 25 – Truth in Millage (TRIM) notices are mailed to homeowners.
November – Tax bills are mailed to homeowners.
March 31 (following year) – Property tax payment deadline
Additional Exemptions and Benefits
Florida offers additional exemptions and assessment discounts for select groups including active service members, veterans, surviving spouses of fallen first responders, and more.
The bottom line: Florida's homestead exemption provides homeowners with a reduction in property taxes, asset protection from creditors, and a cap on annual property value increases. Contact us today with any eligibility or financing questions.
Recent Blog Posts
