If you own a property in Florida, and it is your permanent residence, you may be eligible to receive a homestead exemption. The Florida homestead exemption reduces the tax burden on Florida homeowners. Sounds good? Let me explain!
In the state of Florida, a $25,000 exemption is applied to the first $50,000 of your property’s assessed value if your property is your permanent residence and you owned the property on January 1 of the tax year. This exemption applies to all taxes, including school district taxes.
An additional exemption of up to $25,000 will be applied if your property’s assessed value is between at least $50,000 and $75,000. This exemption is not applied to school district taxes.
Well, what about rentals? Florida is known to have a huge rental market, and yes, these may also maintain a homestead exemption depending on a few things.
You are allowed to rent your homesteaded property for 30 days or less per calendar year and maintain a homestead exemption. Rentals for more than 30 days for two consecutive years or for more than six months at a time represents abandonment of a homestead exemption.
Exempt property rented after January 1 of any year does not affect the homestead exemption for that particular year. If the property is rented on January 1 of the following year or the terms of the lease are six months or more the exemption will be denied.
If you believe your home no longer qualifies for exemption, you are required to notify the Property Appraiser’s Office because failure to do so could result in a Homestead Tax Lien with substantial penalty and interest. So please be careful.
How do you apply for a Homestead Exemption?
First know that all homestead exemption applications must be submitted by March 1.
There are three ways to submit an application:
- You can e-file
- You can complete the application online, click here, print it out, and mail to the Palm Beach County Property Appraiser’s Office, Exemption Services, 1st Floor, 301 N. Olive Ave., West Palm Beach, FL 33401
- You can complete it in person at one of the five service centers
What will you need to qualify for a Homestead Exemption?
- Florida Driver’s License or Florida ID if you do not drive
- Florida car registration
- Florida Voter’s ID (if you vote)
- Immigration documents if not a U.S. citizen
All documents should prove the address of your homesteaded property. Homestead Exemption also qualifies you for the 3% Cap Save our Homes (SOH).
Will you have to do this every year?
Good thing is, no! The appraiser’s office will renew your homestead exemption each year if you continue to qualify for the exemption. After January 1 of each year, they will send you a homestead exemption receipt by mail to confirm the renewal.
Remember, if you no longer qualify for the exemption (rented longer, change in ownership, no longer your permanent residence), it is your responsibility to contact the appraiser’s office.
As mentioned previously, failure to notify the appraiser’s office could result in a homestead tax lien with a substantial penalty and interest.
As always, if you have any questions on homestead exemption or other real estate related needs, please contact me!
