Florida Homestead Exemption Guide

The Florida Homestead Exemption is a constitutional benefit that reduces the assessed value of your primary residence before property taxes are calculated. It is available on the home you own and use as your permanent residence as of January 1 of the tax year.

The standard exemption removes up to $50,000 from your home's assessed value. The first $25,000 applies to all property taxes, including school taxes. The second $25,000 applies only to non-school taxes and is available on assessed values between $50,000 and $75,000. Additional exemptions may be available for seniors, veterans, disabled residents, and surviving spouses.

The exact savings depend on your city, county, and special district millage rates. In Broward and Palm Beach counties, combined rates often range from roughly 18 to 25 mills. A mill is $1 of tax per $1,000 of assessed value. Here is how the exemption works in practice for a luxury home:

To qualify, you must meet all of these requirements:

• 1.Own the property. You must hold title or a beneficial interest in the home as of January 1.
• 2.Make it your permanent residence. You must live in the home as your primary domicile.
• 3.Apply by the deadline. The application must be filed with your county property appraiser by March 1.
• 4.No other homestead. You cannot claim homestead on another property in Florida or elsewhere.

Note that trusts, LLCs, and corporations generally do not qualify. If you are buying through an entity, speak with a real estate attorney about taking title personally or restructuring before the January 1 cutoff.

Filing is free and can be done online in both Broward and Palm Beach counties. You only need to file once; the exemption renews automatically each year as long as you continue to qualify.

1. 1
   Gather your documentsYou will typically need a recorded deed or proof of ownership, a Florida driver's license or ID, vehicle registration, voter registration, and your Social Security number. Some applicants may need a trust document or declaration of domicile.
2. 2
   Visit your county portalUse the online filing system for Broward or Palm Beach County. Both portals accept electronic uploads and provide confirmation numbers.
3. 3
   Complete Form DR-501The Florida Department of Revenue homestead application is standard statewide. Your county may have additional forms for other exemptions.
4. 4
   Submit before March 1Applications filed after March 1 are generally denied for that tax year, though portability and some special exemptions may have different windows.
5. 5
   Keep your records updatedIf you change your mailing address, marital status, or ownership structure, notify the property appraiser so your exemption stays active.

If you purchase a home after January 1, you cannot claim the exemption for the current tax year, but you should file immediately to secure it for the following year. Your real estate attorney or closing agent can help confirm the timeline based on your closing date.

Save Our Homes and Portability

Beyond the exemption, Florida's Save Our Homes amendment caps the annual increase in assessed value on a homesteaded property at 3% or the Consumer Price Index, whichever is lower. In a fast-appreciating luxury market, this cap can be worth far more than the exemption itself.

When you sell a homestead and buy another Florida home, you may be able to port the accumulated difference between your assessed value and market value to your new property. This is called portability, and it can transfer up to $500,000 of assessed value savings. You must establish the new homestead within two years of abandoning the old one.

For luxury buyers moving up from an already-homesteaded home, portability is a powerful tool that can reduce taxes on the new property for years to come.

Frequently Asked Questions

Why This Matters for Luxury Buyers

In South Florida's luxury market, annual property tax bills can be substantial. A $5 million waterfront estate may carry a five-figure tax bill. The homestead exemption, combined with the Save Our Homes cap, creates meaningful long-term savings and predictability.

When evaluating a purchase, ask your agent to estimate the difference between the current owner's assessed taxes and what your tax bill might be as a new buyer. This is one of the most overlooked numbers in luxury transactions, and it directly affects your total cost of ownership.