Florida property taxes are different from almost every other state, and the rules favor homeowners more than most people realize. After 43+ years helping Tampa Bay buyers settle into their first Florida home, our team can tell you that getting the Homestead Exemption and Save Our Homes cap working for you is one of the highest-value actions you can take as a new homeowner.
1. The Homestead Exemption
Up to $50,000 off the assessed value of your primary residence. The first $25,000 applies to all taxing authorities including school district. An additional $25,000 applies to non-school taxes on assessed values between $50,000 and $75,000.
Practical impact: typically $750–$1,200 in annual property tax savings depending on the county and millage rate.
2. The Inflation-Linked Adjustment (Amendment 5)
Effective 2025, the homestead exemption adjusts with the national inflation rate. As CPI rises, your exemption grows automatically — modest protection against inflation eroding the original $50,000 benefit.
3. Save Our Homes (SOH) cap
This is the largest single benefit of Florida homeownership. Once homesteaded, your assessed value can rise by no more than 3% per year (or CPI, whichever is lower), regardless of how much the market value increases.
Real example: a Tampa Bay home that appreciated 60% over five years would have seen ~16% assessed-value growth under SOH. That difference compounds into significant tax savings for as long as you own the home.
4. Portability
If you move within Florida, you can transfer up to $500,000 of your accumulated SOH savings to your next homestead. Upsizing or downsizing both work. This makes moving within Florida far more affordable than starting fresh.
5. Filing deadlines — do not miss these
- File for Homestead Exemption with your county property appraiser by March 1 of the year you want it to apply
- You must own and reside in the home as your primary residence on January 1 of that year
- File once — the exemption renews automatically as long as you own and occupy the home
6. Additional exemptions worth checking
- Senior exemption (age 65+, income-tested)
- Disabled veteran exemption
- First responder disability exemption
- Widow/widower exemption
The bottom line
If you just bought your first Florida home, file for Homestead by March 1 of next year. It is one form and significant ongoing savings. Our team is happy to point you to the right county property appraiser’s office or answer questions about other Florida-specific homeownership benefits.