The Florida Homestead Exemption provides tax and liability protections for your primary residence. Nearly all Florida homeowners are entitled to claim it for their permanent residence, but there are several things you should know.
What does it mean to homestead your house in Florida?
When America was being settled, the Homestead Act was the law that gave them free land to establish a home and farm to support their family. Today, homestead means a permanent residence. This is different from a second home, vacation home, business, or other property.
Florida law provides several tax and legal benefits for a homestead property. In order to receive these benefits, you have to officially request the Homestead Exemption for your property.
What are the benefits offered by Florida Homestead law?
Florida provides two important sets of benefits for a homestead property.
Reduced Property Taxes
Florida homestead properties receive up to a $50,000 exemption from property taxes. The exemption is subtracted from the assessed value of your home. For example, if your home is worth $250,000, your property tax bill is based on a $200,000 value.
You also receive the Save Our Homes benefit. Save Our Homes limits increases in your home’s assessed value to 3% per year. If home prices rapidly rise, you won’t see a sudden increase in your property tax bill.
These tax benefits are explained in detail below.
Protection from Creditors
Florida homestead properties are also generally protected from creditors. If you’re in debt or lose a lawsuit, you generally won’t have to sell your home to pay what you owe.
This Florida homestead protection is also explained in more detail below.
Who qualifies for Florida Homestead?
There are three qualifications for the Florida Homestead Exemption.