Posted on Friday, October 22nd, 2021

tax exemptionWhat is the FL Homestead Exemption?

The Florida homestead tax exemptions and benefits derive from Article VII, Sections 4(d) and 6 of the Florida Constitution and are codified in Chapter 196 and Section 193.155, Florida Statutes. The tax exemption and benefits may apply to a person who has legal and equitable title to real estate when that person maintains such real estate as his or her permanent residence. Since the homestead tax exemption operates to lower the assessed value of your home, the lowering of the assessed value of your home will, in turn, result in a reduction of your real property taxes owed to your local county tax collector.

Who is eligible for FL Homestead Exemption?

  • Own and occupy a home, in Florida, the taxpayer is claiming as his or her permanent residence.
  • Generally, the taxpayer must be a U.S. citizen or a permanent resident (certain exceptions may exist for this) and must establish residency in the County in which the property is located.
  • The property the taxpayer claims as his or her principal residence must be the primary home of the taxpayer.
  • The taxpayer is required to have either legal or beneficial title to the property and evidence of such title is to be recorded in the public records before January 1st of the year the taxpayer intends to apply for the exemption.
  • The taxpayer must complete a homestead tax exemption application and submit the completed application to the applicable property appraiser’s office on or before March 1st of the year the taxpayer intends to apply for the exemption.

How is Homestead Exemption calculated?

Any property that qualifies for a homestead tax exemption shall have their homestead assessed at just value as of January 1st of the applicable tax year following the establishment of the property as homestead and shall be reassessed on January 1st of each year (subject to certain conditions).  The Florida constitution permits a standard homestead tax exemption of up to $50,000, which would be deducted from the assessed value of the homestead property. This exemption would apply so that the first $25,000 would be deducted from the assessed value of the homestead property, then the second $25,000 would be deducted from that portion of the property’s assessed value that is between $50,000 – $75,000. In this way, a homestead exemption in Florida can exempt up to $50,000 of the estimated value of your home from tax liability. In additional to the general homestead tax exemption of up to $50,000, certain taxpayers may qualify for other exemptions provided that the taxpayer has been approved by the applicable municipality for those other exemptions.

How Long Does Homestead Exemption Last?

The duration of the homestead exemption in Orlando is until there is a change of ownership in the applicable property. In fact, the homestead tax exemption is automatically renewed each year, which means that, once established, the taxpayer is not required to affirmatively apply for the exemption each year; however, it is important to keep in mind that a taxpayer is required to notify the applicable property appraiser office if the taxpayer moves, if the taxpayer’s marital status changes, or if the taxpayer transfers the property.

How Your Real Estate Attorney Can Help You Determine If You Qualify 

There are a few things you need to do to determine if you qualify for the Homestead Tax Exemption. For instance, you will need to affirmatively apply for the tax exemption.

Qualifying for the exemption takes some time, effort, and persistence. Remember, there is a lot to learn. At times, your application for the homestead tax exemption may be denied or revoked. You should hire a Nishad Khan P.L real estate attorney with a broad understanding of Florida real estate homestead laws to reduce your risks.

By asking your Orlando real estate attorney for advice, they will give you a good idea if you meet the criteria for the homestead tax exemption. Florida Homestead attorneys can also provide you with the information about the other homestead exemptions you may qualify for. Most of them will take time to assess your specific circumstances and requirements to give you an informed decision.