How Florida Homeowners Can Save on Property Tax

2 days ago 3

Floridians burdened by rising homeowners association (HOA) fees and skyrocketing insurance costs could now get some relief by applying for the state's homestead exemption, a tax benefit which can help them save up to $50,000 on the taxable value of their properties.

As of January 1, eligible homeowners in the Sunshine State can submit all documentation needed to the property appraiser in the county where their home is located to apply for the homestead exemption.

Newsweek contacted the Florida Department of Revenue for comment by email on Thursday.

Why It Matters

On average, property taxes in the Sunshine State are a bit lower than at the national level. However, rates have been rising across several Florida counties in the past year, contributing to the financial burden carried by homeowners. Americans all across the country are facing a housing affordability crisis, which in a state like Florida is being exacerbated by the growing cost of insurance.

The increased risk posed by climate change, which is making extreme weather events such as hurricanes more frequent and more severe, has led to an exodus of private insurers from the state. This, in turn, has contributed to making premiums jump up as Florida homeowners face limited availability on the traditional insurance market.

What To Know

Property appraisers determine the value of Florida homeowners' properties every year as of January 1. This is when any homestead exemption applications—as well as any other action that may reduce a home's taxable value—is taken into consideration.

Those who want to apply must provide evidence of ownership, Social Security number and date of birth. The key requirement is that they must have been living in the property as their primary residence as of January 1.

Some homeowners—including active duty military, disabled veterans, and those who are 65 or older—are also able to apply for further savings on their property tax.

While Florida's average effective property tax rate, at 0.80 percent, is lower than the country's average of 0.99 percent, according to financial tech company SmartAsset, some counties face significantly higher rates.

At 1.31 percent, St. Lucie has the highest average effective property tax rate in the state, followed by Alachua (1.29 percent), Broward (1.20 percent), Charlotte (1.17 percent), Hillsborough = (1.15 percent) Glades and Hardee (1.13 percent). The average effective property tax rate in Palm Beach is 1.11 percent, while it's 1.01 percent in Miami-Dade.

A majority of Floridians seem to agree that their property tax rates are higher than they wish them to be. In November, more than 66 percent of all voters in the Sunshine State decided to have one of the two homestead tax exemptions worth up to $25,000 be adjusted for annual inflation—a move that could save them some money should prices go up.

Those who receive the homestead exemption also benefit from the Save Our Homes Assessment Limitation, which caps any increase in the assessed value of a property to 3 percent or the rate of inflation, whichever is lower. The cap begins the year after homeowners' receive the exemption.

What People Are Saying

Saint Lucie County Property Appraiser Michelle Franklin wrote on X: "If you purchased a home in 2024 and are a Florida Resident, you are eligible to file for Homestead Exemption for 2025."

Santa Rosa County property appraiser Greg Brown told Wear TV: "Let's say your home is assessed at a value of $300,000, you would get $50,000 in savings. You would only pay taxes on $250,000 in value of that property, times the millage rate."