Florida’s Homestead Exemption: Save on Property Taxes

The Homestead Exemption is a valuable property tax benefit available to Florida homeowners who make a property their permanent residence. This exemption can reduce the taxable value of a home by up to $50,000, significantly lowering annual property taxes. The first $25,000 of the exemption applies to all taxing authorities, including school district taxes, while the additional $25,000 applies to properties with assessed values over $50,000 but excludes school taxes. With Amendment 5, approved by Florida voters in November 2024, the second $25,000 exemption now adjusts annually for inflation based on the Consumer Price Index (CPI), ensuring homeowners continue to benefit as property values rise. For the 2025 tax year, the exemption amount will be $50,722. 

To qualify for the Homestead Exemption, a homeowner must hold legal or equitable title to the property as of January 1 and establish it as their permanent residence. Proof of residency may include a Florida driver’s license or ID, vehicle registration, voter registration, or utility bills. Homeowners must also be U.S. citizens or permanent residents and Florida residents as of January 1. Applications must be submitted using Form DR-501 to the county property appraiser by March 1 of the tax year. First-time applicants should be prepared to provide details about ownership, residency, and any dependents living at the property. 

Florida also offers a second Homestead Exemption for properties assessed at $50,000 or more, which applies to non-school taxes. Properties assessed at $50,000 or less are not eligible for this additional exemption. Homeowners should note that renting their property, moving their permanent residence, or no longer being a Florida resident will make them ineligible for the exemption. For those moving within Florida, it may be possible to transfer, or “port,” the homestead assessment difference to a new property, providing additional tax savings. 

The Homestead Exemption can save homeowners thousands of dollars each year, making it a critical tool for managing property taxes. With recent changes to include CPI-based adjustments, this benefit becomes even more valuable over time. Homeowners should carefully maintain their eligibility, ensure all paperwork is filed correctly, and avoid actions such as renting the property that could jeopardize the exemption. 

Don’t wait—check your eligibility and file your Homestead Exemption application today with your county property appraiser to start saving on your property taxes!