How to File Florida Homestead Property Tax Exemption

Jan 14

How do Property Taxes Work in Florida?

In Florida, each county property appraiser assesses all real property within their county as of January 1 each year. Property taxes are paid in arrears (i.e. the taxes for 2022 are due in November of 2022, instead of the taxes for 2023 being collected in November of 2022). The tax amount is based on the just value of each parcel of property and the applicable millage rates set by the local governments the properties are located within.

Each August, the county property appraiser sends property owners within their county an annual Notice of Proposed Property Taxes, which is often called the “TRIM Notice” based on the Truth in Millage Act in Section 200.069, Florida Statutes. After the local governments determine their annual budgets and adopt any changes in the millage rates, the county tax collectors send the property owners a tax bill in October or November.

Property taxes are due by March 31, but there are discounts for paying the taxes before this due date. For instance, there is a 4% discount for paying in November of the current tax year. In December, that discount drops to 3%, and so on until March 31, when there is no discount.

When Can I Apply?

To apply for homestead exemption, the property owner must own the property on or before January 1 of the current year. The application for exemption is due on or before March 1 of the tax year.

What is the Florida Homestead Property Tax Exemption?

Under Article VII, Section 6 of the Florida Constitution and Section 196.031, Florida Statute, certain property owners in Florida are eligible for exemptions that can reduce their property tax liability by decreasing the property’s taxable value by up to $50,000. The first $25,000 applies to all property taxes, including school district taxes. The additional exemption up to $25,000 applies to the assessed value between $50,000 and $75,000 and only to non-school taxes. To benefit from the Florida Homestead Property Tax Exemption, eligible property owners must apply to their local property appraiser. In Brevard county you can apply here or with this form for 2022.

Florida offers additional exemptions for military veterans with service connected disabilities. Veterans applying for this exemption in Brevard County in 2022 should request the exemption on the application. A veteran who is permanently disabled or the surviving spouse of a veteran or first responder who died in the line of duty, may apply for a total exemption from ad-valorem property taxes on the homestead property, pursuant to Section 196.081, Florida Statutes.

If a military servicemember is deployed in the prior calendar year, then the servicemember may apply for an exemption from ad-valorem property taxes on the homestead property pursuant to Section 196.173, Florida Statutes. If approved, the servicemember can receive a discount on the current year’s property taxes, prorated by the prior year’s service. The servicemember may apply for the exemption with Form DR-501.

Who Is Eligible for the Florida Homestead Property Tax Exemption?

A property owner who acquired title to the property before January 1 and who in good faith makes the property their permanent residence or the permanent residence of his or her dependent is eligible for the Florida Homestead Property Tax Exemption. Below are answers to some frequently asked questions about eligibility for the Florida Homestead Property Tax Exemption:

You can only claim the Florida Homestead Property Tax Exemption on one property.
You can still receive the exemption if the property is owned by a trust or life estate so long as you have legal title or beneficial title to the property and are entitled to the use and occupancy of the property under the terms of the trust. See Rules 12D-7.009 and 12D-7.011, Florida Administrative Code.
You can rent your home after January 1 of any year and still keep the exemption for that year, as long as the property is not rented for more than 30 days per calendar year for two consecutive years. See Section 196.061, Florida Statutes.
Once approved, the exemption is automatically renewed each year as long as ownership and residence conditions remain the same for the property.
If you add someone else as an owner of the property after you already had the exemption, you have to reapply for the exemption.

How do I Apply for the Florida Homestead Property Tax Exemption?

To apply for the Florida Homestead Property Tax Exemption, the property owner must complete Form DR-501 and submit it to the property appraiser in the county where the property is located by March 1, or if in Brevard County, by using the above links. The property appraiser will also require specific proof demonstrating that the property is the applicant’s primary residence. Most property appraisers will accept an applicant’s current deed, Florida drivers license showing the property address, and a utility bill for the property in the name of the applicant. Other documents commonly accepted include a Florida vehicle registration, Florida voter registration, bank statements and checking account mailing address, address listed on last IRS return, and Social Security card.

Can I Transfer or Port My Florida Homestead Property Tax Exemption?

Section 193.155, Florida Statutes, establishes when a property value may be assessed. Most commonly, this is after a change in ownership. While you technically cannot transfer your Florida Homestead Property Tax Exemption when you move from a previous Florida homestead to a new Florida homestead, you may be able to transfer or “port” all or part of your homestead assessment difference.

Section 193.155, Florida Statutes, establishes the “Save Our Homes” assessment limitation which limits annual increases in assessed value of property with a Florida Homestead Property Tax Exemption to 3% or the change in the Consumer Price Index, whichever is lower. This Homestead portability allows eligible Florida homestead owners to transfer their Save Our Homes assessment limitation from their old homestead to a new homestead, lowering the assessed value for the new homestead.

To transfer or port the Save Our Homes benefit, you must establish a homestead exemption for the new home within 3 years of January 1 of the year you abandoned the old homestead (not 3 years after the sale). You must file the Transfer of Homestead Assessment Difference Form DR-501T along with the homestead application Form DR-501 for your new home

Conclusion

In conclusion, Florida offers benefits to its residents including a reduction in their property taxes. To take advantage of these benefits, be sure to file for your Florida Homestead Property Tax Exemption and Save Our Homes portability transfer (if eligible) by March 1 after you purchase a new home.

Chelsea Anderson