How do homestead exemptions work?

Homestead exemptions in Florida are designed to help reduce the burden of property taxes for low-income homeowners. A homestead exemption is a partial tax exemption that applies to a homeowner’s primary residence. It reduces the taxable value of a residence, thereby reducing the amount of taxes owed. In order to be eligible for a homestead exemption, homeowners must provide proof that their primary residence is located in Florida and that they have lived in the home for at least 1 year prior to the application date. The homeowner must also meet the income and residency requirements set forth by their county. Once the homeowner is approved, they are exempt from paying a portion of the property taxes associated with their home. The amount of the exemption varies by county, though most counties offer an exemption of up to $50,000 of the home’s assessed value. The homeowner must apply for the homestead exemption annually and must provide proof of income, residency, and ownership each year in order to remain eligible. Should the homeowner sell or leave the home, they must cancel the homestead exemption. Homestead exemptions are an important way for low-income homeowners to reduce the amount of taxes they owe on their homes. By providing a partial tax exemption, homeowners can keep more of their income to support their families and cover living expenses.

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