Lets talk about HomeStead Tax Exemptions and Portability!
I know sounds super exciting right?
But seriously, what I am about to tell you can save you thousands and some even 10’s of thousands on their property taxes. So listen carefully
When you purchase a home you have until March 1st to file for a homestead tax exemption for this year!
If it is past March 1st you can still apply but you will be applying for next year.
A homestead exemption gives you a $50,000 reduction in your assessment value. And caps the rate of increase to 3% annually as long as the property stays homesteaded. Not only is the deduction amazing but the cap keeps your taxes from raising significantly every year
A couple of key points-
- The address on your drivers license has to match the address of the property you are applying for
- You only get 1 homesteaded property at a time
Portability – Is the transfer of one Homestead tax exemption to another property.
Lets say you have owned a homesteaded home in the state of Florida for the last 10 years and you decide to sell and purchase a new one in the state of florida. You can transfer the past 10 years of homestead savings on to your new home. Which could possibly give you an exemption of $100K – That’s a HUGE Savings! Now regulations do apply. You have to apply for portability within 2 HOMESTEAD years, which basically can convert to 1 calendar year if you purchased after March 1st.
It can get confusing so please make sure you apply for your homestead and if you qualify for portability apply immediately. DO NOT delay, or it could cost you!
For more detailed information please contact your local property appraiser's office directly by using the links below.