Florida Homestead: Property Tax Benefits
Florida law provides lower property tax assessments on homestead properties that can help you save a lot in property taxes. Under the Florida Constitution, every Florida homeowner can receive homestead exemption up to $50,000. The first $25,000 in property value is exempt from all property taxes, including school district taxes. The additional $25,000 exemption is available for non-school taxes and applies only to the assessed value between $50,000 and $75,000. Seniors who are 65 or older and military veterans can get additional property exemptions or discounts.
What is a “Homestead” Under Florida Law?
There are three requirements to qualify for homestead protection under Florida law: a residency requirement, an acreage limitation, and a natural person limitation. These requirements are discussed below.
Residency Requirement
Only Florida residents can claim Florida homestead exemption. To become a Florida resident, a person must reside in Florida with the intent of residing in Florida permanently. To help avoid questions about subjective intent, a person may file an affidavit with the county clerk stating that he or she intends to reside in Florida permanently. If a person actually lives in another state and uses the Florida home only occasionally (or not at all), the person can’t qualify the Florida property for homestead protection by simply filing an affidavit.
Acreage Limitation
Florida homestead protection only protects a homestead if it meets certain acreage requirements. The amount of acreage that will be protected by Florida homestead exemption depends on whether the homestead is located within a municipality. If the residence is located within a municipality, only one-half an acre can be protected by the Florida homestead exemption; if the residence is located outside a municipality, up to 160 acres can be protected. If the property is located outside a municipality, buildings and other structures on that property will also be considered part of the homestead, even if used for business purposes. Ancillary buildings or other structures used for business purposes would not be protected if the home is located within a municipality.
“Owned by a Natural Person” Limitation
To qualify for homestead protection, the property must be “owned by a natural person” (a human being). If the property is owned by a corporation or a limited liability company, for example, it will not qualify for Florida homestead protection.
For further information, please visit How to Apply for a Homestead Exemption in Florida.
What are Asset Protection Benefits?
Florida has generous homestead laws that protect property owners from claims by creditors. These laws protect qualifying Florida homeowners from having their homes forcibly sold to pay creditors. Although other states have similar laws, several features of Florida’s homestead laws provide extra asset protection for homeowners:
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Unlimited Value – Florida’s homestead laws protect an unlimited amount of value in a home. Even luxury homes worth millions of dollars are fully protected from creditors under Florida homestead law.
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No Waiting Period – There is no waiting period for Florida homestead protection. On the day that a homeowner occupies the property intending to make it a Florida homestead, the home becomes protected from creditors.
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Inheritability – The protection provided by Florida homestead law can be inherited by the surviving spouse or heirs of the property owner. As long as the deceased person does not leave the property to someone other than a spouse or qualifying heir or leave a will that requires the property to be sold, the home will continue to be protected from creditor claims after the owner’s death.
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