Florida Homestead Exemption

Quick Facts

• Base benefit: Florida’s homestead exemption reduces assessed value by up to $50,000—$25,000 applies to all property taxes, and an additional $25,000 applies to non-school taxes for assessments between $50,000 and $75,000.
• Save Our Homes cap: Once homesteaded, annual assessment increases are capped at 3% or the Consumer Price Index, whichever is lower. This protects against large valuation spikes.
• Additional exemptions: Seniors, disabled persons, deployed service members, disabled veterans, surviving spouses of first responders, and low-income seniors may qualify for extra reductions or full tax relief.
• Portability: Homeowners can transfer up to $500,000 of Save Our Homes benefit to a new Florida homestead within three years via Form DR-501T.
• Deadline: Submit the initial application (Form DR-501) by March 1. Late applications may be accepted with documented extenuating circumstances by petitioning the Value Adjustment Board.

Program Overview

Florida’s Constitution and statutes provide strong homeowner protections. The homestead exemption reduces taxable value and locks in the Save Our Homes assessment cap, significantly lowering long-term tax liabilities. The program is administered by county property appraisers, but statewide rules ensure consistency. Florida also offers tax deferral and installment payment options, but the homestead exemption is foundational for controlling property taxes.

Beyond the base exemption, numerous optional benefits are available. Counties may adopt additional exemptions for seniors (age 65+ with limited income), long-term residents, and first responders. Disabled veterans and their surviving spouses can receive full exemptions for service-connected disabilities. Deployed service members can claim an exemption proportional to deployment days. Understanding and stacking these benefits can save thousands annually.

Eligibility Requirements

Primary Residence Criteria

• You must own the property (fee simple, joint tenancy, life estate, or certain trusts) and occupy it as your permanent residence on January 1 of the tax year.
• Provide evidence of Florida residency: Florida driver’s license or ID, Florida vehicle registration, voter registration (if applicable), recorded deed, and utility bills.
• Applicants must be U.S. citizens, lawful permanent residents, or certain eligible noncitizens (e.g., asylum recipients) residing in Florida. Noncitizen owners must submit proof of legal residency.

Additional Exemptions

• Low-income senior exemption: Age 65+, household income below $36,614 (2024 amount, adjusted annually). Requires income statement and may offer up to $50,000 additional reduction or complete tax exemption depending on county ordinance.
• Long-term senior exemption: In some counties, age 65+ with low income and residing in the home for 25+ years may receive full exemption on county taxes.
• Disabled persons: Totally and permanently disabled individuals can claim a $500 exemption; blind persons and wheelchair-bound individuals qualify for specific reductions. Provide physician certifications.
• Disabled veterans: Partial exemptions based on disability percentage; 100% service-connected veterans and surviving spouses receive full exemption. Combat-related disability must be verified by VA letter.
• Deployed service members: Exemption equals percentage of previous year deployed. Submit deployment orders and Form DR-501M.
• First responder surviving spouse: Full exemption for surviving spouse of first responder killed in line of duty, provided they do not remarry.

Application Process

1. Gather documents: Driver’s license, vehicle registration, voter registration, recorded deed, Social Security numbers, immigration documents (if applicable), utility bills, and any supporting records for additional exemptions (income, disability, military orders).
2. Complete Form DR-501: Available from county property appraiser offices and online. Include parcel ID, legal description, and applicant information.
3. Submit by March 1: File in person, by mail, or online (many counties offer e-filing). Keep copies and request confirmation.
4. Optional forms: File DR-501T for portability, DR-501SC for low-income senior exemption, DR-501DV for disabled veterans, DR-501M for deployed military, and county-specific affidavits.
5. Review assessment notice: Each August, the TRIM notice shows exemptions applied. If an exemption is missing, contact the property appraiser immediately.
6. Appeal if necessary: Petition the Value Adjustment Board within 25 days of the TRIM notice mailing. Provide evidence supporting eligibility.

Save Our Homes Portability

• Allows transfer of accumulated assessment differential when moving to a new homestead within Florida.
• File Form DR-501T within three years of leaving prior homestead. Provide closing statements, parcel numbers, and occupancy dates.
• Benefit reduces assessed value of new home, preventing a sudden tax increase. If downsizing, the differential is prorated; if upsizing, full benefit up to $500,000 transfers.

Documentation Tips

• Ensure all residency documents show the homestead address before January 1.
• For married couples with properties in multiple states, only one homestead is allowed. A spouse claiming an out-of-state exemption may disqualify the Florida application.
• Keep proof of relinquishing prior homestead (e.g., cancellation letters from other states) to avoid questions about dual residency.
• For low-income senior exemptions, submit sworn statements of household income, IRS transcripts, and documentation for non-taxable income.
• Veterans should request current VA letters specifying disability rating and service connection. Provide DD-214 for verification.

Strategies to Maximize Benefits

• Apply promptly: Missing the March 1 deadline delays benefits for a year. File as soon as you close on the property or move in.
• Bundle exemptions: Combine base homestead with low-income senior, veteran, and first responder exemptions where eligible.
• Monitor TRIM notices: Ensure exemptions appear each year. If removed, contact the property appraiser immediately; failure to respond could lead to back taxes plus penalty and interest.
• Use portability wisely: Plan home sales and purchases within three-year window to preserve Save Our Homes differential. For married couples, file joint portability or allocate benefit between spouses if they establish separate homesteads after divorce.
• Consider tax deferral: Seniors meeting income requirements can defer property taxes under Florida’s Homestead Tax Deferral program, paying later with interest.

Interaction with Other Programs

• Homestead tax deferral: Allows eligible seniors to defer taxes above 3% of household income. File DR-570 by March 31.
• Installment payment plan: Pay taxes quarterly (June, September, December, March) to manage cash flow. Apply with county tax collector.
• Property tax appeals: Even with exemptions, challenge high assessments through the Value Adjustment Board or informal meetings with appraiser staff.
• Community grants: Check city and county programs for hurricane-hardening grants, energy efficiency rebates, and utility discounts for seniors.

Example Scenarios

• Retiree in Pinellas County: Mr. Alvarez, age 70, files for base homestead and low-income senior exemption, reducing assessed value by $100,000 combined. Save Our Homes limits annual increases to 3%, keeping taxes predictable despite waterfront property appreciation.
• Veteran in Orange County: Sgt. Lee, a 100% disabled veteran, qualifies for full exemption, eliminating ad valorem taxes. He also transfers $200,000 in Save Our Homes differential to a new home after downsizing, keeping future taxes low.
• Family moving within Florida: The Thompsons sell their Broward County home and buy in Palm Beach County. They file DR-501T to transfer $75,000 in assessment savings, preventing a $1,500 annual tax increase.

Frequently Asked Questions

• Do I need to reapply annually? No. Once approved, exemptions renew automatically, but additional senior exemptions may require annual income verification.
• Can I rent my homestead? Renting the entire home may void the exemption. Short-term rentals exceeding 30 days twice in a year can trigger removal. Renting a room while occupying the rest is typically allowed, but consult your property appraiser.
• What if I split time between states? Florida requires intent to make the property your permanent residence. Ensure documentation supports Florida residency and surrender out-of-state driver’s licenses.
• How does divorce affect the exemption? After divorce, the spouse who remains in the home can continue the exemption. If both move, file portability applications to retain the differential.
• What happens if I miss the deadline? Petition the Value Adjustment Board with a written explanation and documentation. Approval is discretionary; do not rely on late acceptance.

Additional Resources

• Florida Department of Revenue – Property Tax Exemptions
• Form DR-501 Homestead Exemption Application
• Save Our Homes Portability Information
• Florida Statutes Chapter 196 – Exemptions
• Florida Veterans’ Property Tax Resources