Taxes & Benefits of the Homestead Act

FLORIDA TAX IMPLICATIONS AND BENEFITS

The Florida legislature is currently addressing the issue of property taxes on behalf of all Florida homeowners. This article will be updated as soon as any law or regulation is passed.

Homestead

Florida property owners have the opportunity to participate in a Homestead Exemption which reduces the taxable value of your home by $25,000 each year. More importantly, a home which qualifies for a Homestead Exemption is also protected by the Save Our Homes amendment which limits increases in property tax assessments to 3 percent per year. The Homestead Exemption is available to everyone who holds legal title to real property in Florida which is used as a primary residence.

To apply for the Homestead Exemption you need:

• A copy of the recorded deed
• Social security numbers of all owners
• Proof of permanent residence if you are not a U.S. citizen
• Death certificate of spouse if you are filing for a widow or widower exemption
• Florida driver’s license (or Florida ID card) and one of the following:
  • Florida vehicle registration
  • Florida voter registration card
  • Declaration of domicile

There are a number of additional exemptions available for widows, widowers, and persons with disabilities. New applications for Homestead, Widow, Widower or Disability Exemption must be made in person in the Property Appraiser’s Office between January 1^st and March 1^st. From March through December 31^st, you may pre-file for Homestead for the next calendar year. Please email me at laura@FloridaOnYourMind.com for the office location near you.

Property Taxes

It is important to estimate the property tax of any home you are interested in purchasing. However, don’t count on the owner’s current taxes being applicable once you buy the home as property taxes will be assessed on the home’s new value. A good rule of thumb is to calculate your property taxes at 2% of the purchase price. Right now, the rate is actually about 1.8% but is subject to change every year.

Palm Beach County property tax notices are sent out on November 1, and are due in March. However, our tax collector gives you another opportunity to save—if you pay your property tax in full November through February, you can deduct the following percentages from the total.

• 4% in November - or within 30 days of when the notice is mailed, if it is not mailed before November 1
• 3% in December
• 2% in January
• 1% in February

If you would like more information about Palm Beach County’s Homestead Exemption and/or property tax assessments, please call or email me at laura@FloridaOnYourMind.com.