What Is Homestead Exemption in Florida and How Do You Apply?
Florida’s Homestead Exemption can reduce property taxes and protect homeowners from large assessment increases. Learn how it works, who qualifies, and how to apply.
GENERAL REAL ESTATE
Eric Stalnaker
5/26/20262 min read
One of the biggest tax advantages available to Florida homeowners is the Homestead Exemption. If you own and live in your home as your primary residence, this exemption can reduce your taxable value and help limit future increases in your property taxes. In other words, Florida occasionally does throw homeowners a financial life raft instead of just another insurance bill.
Here’s how it works.
Florida homeowners may qualify for up to a $50,000 property tax exemption on their primary residence. The first $25,000 applies to all property taxes, including school taxes, while the additional portion applies to non-school taxes.
In 2024, Florida voters approved Amendment 5, which now adjusts part of the exemption for inflation annually. For 2026, some estimates place the effective exemption slightly above $50,000 because of CPI adjustments.
The exemption can create meaningful savings. Florida Realtors recently noted that eligible homeowners often save approximately $400 to $600 annually, though savings vary depending on local tax rates and home value.
But the long-term benefit is often even more valuable.
Once homesteaded, your property becomes eligible for Florida’s Save Our Homes cap, which limits annual assessed value increases to the lesser of 3% or the Consumer Price Index. This protection can significantly slow the growth of your property taxes over time, especially in rapidly appreciating markets like Central Florida.
And here is where things get really interesting. Florida has talked about eliminating property taxes for the last few years now. There is a good chance it is on the voters' ballot in 2026. The plan is to reduce property taxes over time, a percentage reduction over the next 10 years. This will more than likely increase taxes on those with a second home here in Florida, like snowbirds who don't claim this as their primary residence. But even a reduction of say 25% is an incredible benefit to homeowners.
To qualify, the property must be your permanent primary residence as of January 1 of the tax year. You generally cannot claim homestead exemptions in multiple states at the same time.
Applying is relatively straightforward. Homeowners file Form DR-501 with their county property appraiser’s office. Applications are usually submitted online, by mail, or in person. In most counties, the deadline to apply is March 1 for that tax year.
Most counties require:
• Florida driver license or ID
• Florida vehicle registration
• Voter registration or declaration of domicile
• Social Security numbers for owners applying
If you move from one Florida homesteaded property to another, you may also qualify for portability, which allows you to transfer part of your Save Our Homes tax benefit to the new home.
Bottom Line
Florida’s Homestead Exemption can reduce your property taxes today while protecting you from major tax increases in the future. For many homeowners, it becomes one of the most valuable long-term financial benefits of owning property in Florida.
If you’re ready to start searching for your next home and want guidance on property taxes, exemptions, and long-term ownership costs, head over to teamlott.com and start exploring what’s available.
