Today we’ll be detailing when exactly you need to apply for homestead exemption and property tax portability in Florida.
Homestead exemption reduces the taxable value on a homeowner’s primary residence by up to $50,000. Florida gives benefits to homeowners who live here full time—there are a lot of second homes and investment properties, so our state wants to reward those who stay here throughout the year.
Florida Property Tax Portability:
If you’re a current homeowner and you’ve sold a house in 2018 prior to or after buying your own home, you’re eligible for Florida property tax portability. In 2008, the state realized that homeowners weren’t moving up to better homes because taxable values were incredibly inflated by increased home prices. They then passed a law that allows current homeowners to port a portion of their current homestead taxes to their new home, limiting tax increases each year to no more than 3%.
If you purchased a home before December 31, 2018, you need to apply by February 28, 2019, to receive the homestead exemption and/or Florida property tax portability. Florida’s tax bills run from January 1 to December 31, so whoever is the owner of public record on January 1 will be the one eligible for the homestead exemption for that tax year.
If you have any questions or need more information, reach out to us. We look forward to hearing from you soon.