Homestead exemption and Save Our Homes
Florida's homestead exemption lowers the taxable value of an owner's permanent home. It is one of the most tested tax topics on the sales associate exam.
Who qualifies
Under 196.031(1)(a), a person qualifies if, on January 1, the person:
- holds legal title or beneficial title in equity to Florida real property, and
- in good faith makes the property his or her permanent residence.
The deed or other title instrument must be recorded in the county's official records before the exemption can be granted. Status is fixed on January 1. A buyer who closes and moves in on January 2 does not qualify until the following year.
The owner must apply to the county property appraiser by March 1 (196.011(1)(a)). Missing the deadline waives the exemption for that year, subject to limited late-filing exceptions in the statute.
How the two exemptions work
| Piece | Amount | Applies to |
|---|---|---|
| First exemption, 196.031(1)(a) | Up to $25,000 of assessed value | All levies, including school taxes |
| Additional exemption, 196.031(1)(b) | Up to $25,000 of assessed value above $50,000 | All levies except school district levies |
So a homestead with an assessed value of $75,000 or more saves $25,000 of value from school taxes and $50,000 of value from everything else. The value between $25,000 and $50,000 is still taxed by everyone.
Neither piece exempts special assessments. The statute grants an exemption "from all taxation, except for assessments for special benefits."
Inflation note. Starting with the 2025 tax roll, the additional $25,000 in (1)(b) is adjusted each January 1 for inflation when the CPI change is positive (196.031(1)(b), as amended by ch. 2024-261). The $50,000 threshold is not indexed. The actual figure may now be a little above $25,000; exam problems state the amounts they want you to use.
Worked example
A homestead is assessed at $300,000. The school millage is 6.5 and the non-school millage is 14.0. Use $25,000 for each exemption piece.
- School taxable value: $300,000 − $25,000 = $275,000. Tax: $275,000 × 6.5 ÷ 1,000 = $1,787.50
- Non-school taxable value: $300,000 − $50,000 = $250,000. Tax: $250,000 × 14 ÷ 1,000 = $3,500
- Total: $5,287.50
The common mistake is subtracting $50,000 from the school levy too.
Save Our Homes
Once a property has the homestead exemption, its assessed value can rise each year by no more than the lower of (193.155(1)):
- 3% of the prior year's assessed value, or
- the percentage change in the Consumer Price Index for the preceding year.
If the market drops and just value falls below the capped value, assessed value is lowered to just value (193.155(2)). The cap limits increases; it never pushes assessed value above market.
Change of ownership resets the cap
When a homestead changes ownership, it is reassessed at just value as of January 1 of the following year (193.155(3)(a)). That is why a buyer's tax bill can be much higher than the seller's. Agents should warn buyers not to budget from the seller's bill.
Portability
Over time, a gap grows between a homestead's just value and its capped assessed value. Portability lets an owner carry much of that difference to a new Florida homestead (193.155(8)):
- The owner must have had a homestead exemption on January 1 of any of the 3 preceding years.
- The benefit transferred is capped at $500,000.
- The owner applies with the new homestead exemption application.
The exact transfer formula depends on whether the new home costs more or less than the old one. For the exam, know the idea: the Save Our Homes savings are not lost when a homesteader moves within Florida.