Buying a home in Florida is exciting, but it also comes with responsibilities—like paying property taxes. Understanding how property taxes work and how the homestead exemption helps you save money can make a big difference. Whether you’re a first-time buyer or already own a home, this guide breaks it all down in simple terms.
What Are Property Taxes?
Property taxes are payments made to your local government based on your home’s value. These taxes help pay for schools, parks, roads, and public safety. Each year, your county appraiser figures out the market value of your home. Then, local tax offices use that value to calculate how much you owe.
In Florida, property taxes are collected yearly. The amount can vary depending on where you live and how much your home is worth.
How Is the Tax Amount Decided?
The first step is figuring out your home’s assessed value. This isn’t always the same as what you paid for the house. The county tax appraiser estimates what your home would sell for on January 1 of that year. Then they apply a tax rate—called a “millage rate”—to that value.
For example, if your home is valued at $250,000 and your millage rate is 18 mills (or 1.8%), your tax bill would be $4,500. But you may qualify for exemptions that can lower this amount.
What Is the Homestead Exemption?
The homestead exemption is a benefit for homeowners in Florida who live in their home as their primary residence. It lowers the taxable value of your home, which means you pay less in property taxes.
If you qualify, the first $25,000 of your home’s value is fully exempt from taxes. There is an additional $25,000 exemption that applies to some local taxes if your home is worth more than $50,000. That could mean big savings each year!
Who Qualifies for the Homestead Exemption?
To qualify for the homestead exemption in Florida, you must meet these requirements:
- Own the property.
- Use it as your permanent residence.
- Apply by March 1 of the tax year.
You only have to apply once, as long as nothing changes with your ownership or residency. If you move or sell your home, you’ll need to apply again for your new property.
Why Is the Homestead Exemption So Helpful?
Aside from lowering your tax bill, the exemption also helps protect your home. Florida’s laws prevent the forced sale of your primary residence to meet the demands of most creditors. Plus, once you have the homestead exemption, your home’s assessed value cannot go up more than 3% per year—even if the market value rises faster.
This protection is part of Florida’s “Save Our Homes” law, and it can make your long-term housing costs more predictable.
How to Apply
The process to apply is simple:
- Visit your county property appraiser’s website.
- Look for the homestead exemption section.
- Fill out the online application or print it and mail it in.
- Submit before March 1 of the year you want the exemption.
You’ll need to show proof of residency like a Florida driver’s license, voter registration, and utility bills.
Other Property Tax Exemptions
In addition to the homestead exemption, there are other programs available for:
- Seniors with low income
- Veterans
- Disabled individuals
- First responders
Check with your county to see if you qualify for any extra savings.
Planning Ahead
Understanding your property taxes and exemptions can help you make smarter decisions when buying a home. It’s a key part of budgeting for the future and making sure you aren’t surprised by costs later.
If you’re thinking about buying a home in Central Florida, it’s smart to work with a real estate team that knows the ins and outs of property taxes and exemptions.
At Megan Dowdy Realty, we are here to help you make informed choices and find the perfect home in Central Florida. If you have questions or are ready to take the next step, contact us today. You can also stay up to date with the latest tips and listings by following us on Facebook.
