By Phil Ganz
Edited by Ryan Skerritt
Understanding property taxes is an important part of homeownership in Florida.
Did you know that the Standard Homestead Property Tax Exemption in Florida typically saves homeowners about $800 annually by reducing the assessed value of their property up to $50,000 and limiting annual increases in assessed value.
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Carefully reading this guide could save you thousands of dollars in taxes each year, so be sure to go through it thoroughly!
Property Tax Basics in Florida
Property taxes in Florida fund important local services like schools, law enforcement, fire protection, and road maintenance. The state’s average property tax rate is 0.80%, which is lower than the national average of 0.99%. On average, Florida homeowners pay about $2,338 in property taxes each year, though the amount varies depending on the county.
Florida property taxes are calculated based on the assessed value of your property and the local millage rate, which is set by local taxing authorities. Each year, county property appraisers assess the value of your home, and this assessed value is used to determine your property taxes. Tax notices are typically sent out in August, with bills arriving in October or November. Homeowners have until March 31 of the following year to pay their property taxes.
Key deadlines are important to keep in mind. Property values are assessed as of January 1 each year, and if you're eligible, you must apply for the homestead exemption by March 1. This exemption helps reduce the taxable value of your home and can lower your tax bill.
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Florida House Bill 1371: Could Property Taxes Be Eliminated in 2025?
Florida House Bill 1371 is currently stirring discussions about the potential elimination of all property taxes in Florida.
On average, Florida homeowners could save around $2,338 per year if all property taxes are removed.
Florida is looking into multiple options to overhail property taxes in the state such as removing all property taxes or substantial reductions including a $100,000 exemption for all properties and a $250,000 exemption for seniors over 65.
If passed, the bill would also replace property tax revenue with a consumption tax. Homeowners could save thousands annually if property taxes were eliminated, though an increase in sales tax could offset some of these savings.
The bill is currently under review, and homeowners should keep an eye on its progress.
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Save $800 With The Florida Homestead Exemption
The Florida Homestead Exemption is a valuable benefit that can significantly reduce the amount of property taxes you owe. It allows homeowners to reduce the taxable value of their primary residence by up to $50,000.
The first $25,000 applies to all property taxes, including school taxes, while the additional $25,000 only applies to non-school taxes. On average, homeowners can save around $800 per year with this exemption, but the savings can vary depending on the local tax rates in your county.
To qualify, you must own and live in the property as your permanent residence as of January 1 of the tax year and be a permanent resident of Florida. There are no income or age restrictions for the standard homestead exemption, making it available to all qualifying homeowners.
To apply for the homestead exemption, you need to visit the website of your local county property appraiser. Applications are generally submitted online, by mail, or in person, and the deadline to apply is March 1 of each year. Be sure to gather necessary documents, such as proof of residency and property ownership, when applying.
Once approved, this exemption can provide long-term savings by also limiting annual increases in the property's assessed value.
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How the Save Our Homes Cap Can Shield You from Rising Property Taxes
The Save Our Homes (SOH) benefit is a property tax protection in Florida that helps homeowners limit increases in their home’s assessed value. Under this benefit, once you qualify for the homestead exemption, the assessed value of your home cannot increase by more than 3% per year or the percentage change in the Consumer Price Index (CPI), whichever is lower. This cap can provide significant long-term savings, especially in a fast-growing real estate market where property values rise quickly.
For example, if your home’s market value increases by 8% in one year, without the Save Our Homes cap, your property taxes would rise accordingly. But with the 3% cap, your assessed value would only increase by 3%, protecting you from large, sudden tax hikes. If your home is initially assessed at $250,000, and it appreciates by 8% annually, after five years, the market value could rise to about $367,000, but the Save Our Homes cap would limit your assessed value to roughly $290,000. Over time, this could save you thousands of dollars in property taxes.
Homeowners automatically benefit from Save Our Homes once they receive the homestead exemption, so there’s no need to apply separately. However, to maintain this benefit, it’s essential that the property remains your primary residence and that you continue to qualify for the homestead exemption each year.
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How to Check if You Can Save Even More with Local County Property Tax Exemptions
In addition to statewide exemptions, many Florida counties offer their own property tax exemptions that can provide additional savings for eligible homeowners.
These local exemptions often apply to seniors, disabled individuals, veterans, and low-income homeowners.
To find out if you qualify for any county-specific exemptions, visit your local county property appraiser's website or contact their office directly.
By combining these local exemptions with the standard homestead exemption, you may be able to save even more on your property taxes each year.
Make sure to review the eligibility criteria and apply by the appropriate deadline to maximize your savings.
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$2400 Property Tax Exemptions for Seniors
Florida seniors can benefit from multiple special property tax exemptions, which can significantly reduce their tax burden.
These exemptions are designed to help seniors save up to $2,400 per year by combining the Standard Homestead Exemption, the Statewide $50,000 Property Tax Exemption for Seniors, and any applicable county-specific exemptions.
These savings can be essential for seniors living on a fixed income.
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Special Property Tax Exemptions in Florida
Florida provides several property tax exemptions designed to reduce the tax burden on eligible homeowners. Below are some key exemptions you may qualify for:
Property Tax Exemption for Disabled Veterans
Florida offers a valuable property tax exemption for disabled veterans who use their home as a primary residence. Veterans with a disability rating of 10% or more may qualify, with savings ranging from $500 to over $5,000 per year depending on the veteran’s disability rating. Veterans with a 100% disability rating could have their property taxes fully waived. To apply, veterans need to provide proof of their disability rating from the U.S. Department of Veterans Affairs (VA) and submit documentation to their local county property appraiser.
Widow/Widower Exemption
In Florida, widows and widowers can benefit from a $500 property tax exemption. Though modest, it helps reduce the taxable value of the home. You can apply by submitting your spouse’s death certificate to your county property appraiser’s office.
Disability Exemptions
Homeowners who are permanently and totally disabled may qualify for additional exemptions. This includes individuals who are quadriplegic, paraplegic, hemiplegic, or legally blind, depending on income thresholds. These exemptions can substantially reduce property taxes and must be applied for through the local property appraiser with the necessary documentation.
First Responder Exemption
Florida offers a full property tax exemption for first responders who are permanently and totally disabled due to job-related injuries. This exemption can eliminate your property taxes entirely. Eligible first responders must apply with medical proof of their disability to their local property appraiser’s office.
Deployed Military Exemption
Active duty military members deployed overseas may qualify for an exemption based on the number of days deployed. To claim this exemption, military personnel must submit deployment orders to their county property appraiser.
Surviving Spouse of First Responders or Military Members
Surviving spouses of first responders or military members killed in the line of duty are eligible for a 100% property tax exemption in Florida, removing property taxes from their primary residence. Proof of death in the line of duty must be provided to the county property appraiser's office.
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Bottom Line
Understanding property taxes is a crucial part of homeownership in Florida. By taking advantage of the various exemptions available—such as the Standard Homestead Exemption, Save Our Homes benefit, and specific exemptions for seniors and disabled veterans—you can significantly reduce your property tax bill.
Make sure to stay informed about upcoming legislation like Florida House Bill 1371, which could further change how property taxes are handled in the state. Be proactive by applying for exemptions and checking if you qualify for additional savings through your county. With the right steps, you can ensure that you're not overpaying on property taxes and keep more money in your pocket each year.
Take action today to review your eligibility for these exemptions and protect your financial future as a Florida homeowner.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
