One of the great many advantages of owning a home in the state of Florida is the tax benefit of Homestead Exemption.
Every person who purchases and resides in a home in Florida on January 1st and thusly makes this their permanent residence, is eligible to receive a homestead exemption of up to $50,000. The tax benefit is applied in increments of $25,000; the first going towards all property taxes, including school district taxes. The additional exemption of up to $25,000 applies to the assessed (or taxable) value of the real property.
Keep in mind that to be eligible for the full $50,000 exemption you must be legally married. If you are listed as single, divorced, widowed, etc. you are still eligible for an exemption, however it is capped at $25,000. There are also additional exemptions for widows/widowers, disabled, veterans, and much more.
A basic breakdown of the Homestead Exemption is as such:
Joe and Jane Smith purchased their home at a price of $500,000 on December 1st. On December 15th they recorded this as their permanent residence by switching their drivers’ licenses and enrolling their children into local schools. On January 1st they would be eligible to apply for the full $50,000 exemption as they are a legally married couple proving their Florida home as their permanent residence. Thusly, instead of paying taxes on the assessed value of $500,000 they would only be paying taxes on a value of $450,000.
To know more about the difference between Assessed (taxable) value and Fair Market (appraised) value of a home, please refer to my previous blog on this topic. I am here to aide in as smooth of a transition for you and your family as possible.