Other than the beautiful weather in Florida, many people say that an added perk to living in the Sunshine State is not having to pay state income tax. However, the state government makes up for that in higher property taxes than other states, as property taxes are the primary income stream for the state. It is important for residents to understand the state’s homestead exemption law. If you own a home, and have not filed for homestead exemption, you could save thousands of dollars per year and get other protection from creditors, etc.
Florida property tax homestead exemption reduces the value of a home for assessment of property taxes by $50,000. For example, a home that was actually worth $100,000 would be taxed as though it was worth only $50,000. However, the second $25,000 of homestead coverage does not apply to the school portion of property taxes, and only applies to the third $25,000 of a property's total value (i.e., that portion of a property's value between $50,000-$75,000).
It is important to note that homestead expemtion only reduces the taxable property value. It does not reduce rate at which the property is taxed, also called the millage rate. Millage rates vary per county.
In addition, the Florida homestead exemption exempts homestead property from levy and execution by judgment creditors. In Florida, a home is figuratively a castle, one that is impenetrable by creditors as established by Article X, Section 4 of the Florida Constitution. This means that a creditor cannot force the sale of your homestead to satisfy a judgment. Florida courts have liberally expanded definitions of homestead property to include more than just a single family house. Condominiums, manufactured homes, and mobile homes are also afforded homestead protection. The Florida Constitution defines homestead as one’s principal place of residence up to one-half acre within a municipality and up to 160 contiguous acres outside a municipality. Contiguous property may include lots with separate legal descriptions and separate tax numbers.
As one can see, understanding the homestead exemption law can save you thousands of dollars per year. It can even save your home!
To qualify for homestead protection, a debtor must be a permanent Florida resident, and the homestead property must be his or her primary place of residence. To apply, property owners must apply in person at their local property appraiser’s office. For more information about Volusia County property taxes, visit the county appraiser's website.
It is important to note that homestead expemtion only reduces the taxable property value. It does not reduce rate at which the property is taxed, also called the millage rate. Millage rates vary per county.
In addition, the Florida homestead exemption exempts homestead property from levy and execution by judgment creditors. In Florida, a home is figuratively a castle, one that is impenetrable by creditors as established by Article X, Section 4 of the Florida Constitution. This means that a creditor cannot force the sale of your homestead to satisfy a judgment. Florida courts have liberally expanded definitions of homestead property to include more than just a single family house. Condominiums, manufactured homes, and mobile homes are also afforded homestead protection. The Florida Constitution defines homestead as one’s principal place of residence up to one-half acre within a municipality and up to 160 contiguous acres outside a municipality. Contiguous property may include lots with separate legal descriptions and separate tax numbers.
As one can see, understanding the homestead exemption law can save you thousands of dollars per year. It can even save your home!
To qualify for homestead protection, a debtor must be a permanent Florida resident, and the homestead property must be his or her primary place of residence. To apply, property owners must apply in person at their local property appraiser’s office. For more information about Volusia County property taxes, visit the county appraiser's website.