If you found yourself purchasing a new home in Florida in 2022, you were not alone. Florida’s population growth of 1.9% ranks the state number one in the country for population growth in 2022, according to a mid-December census report released. Florida’s rise to #1 is its first time topping that list since 1957. In that time span the state’s population has grown every year but 2022 stood out. This means there are many new Palm Beach County Florida residents who should not forget two key extra moves…Homestead Exemption & Tax Portability.
Homestead Exemption…What is it?
The Florida homestead exemption is a way to minimize the property taxes for a Florida homeowner. This is also a useful tool to offer protection from creditors following a death of a spouse or in the instance of filing for bankruptcy. However, this exemption does not protect against bank foreclosure.
Key Points to Remember:
- Homestead Exemption helps to cut down owners’ obligations on property tax
- Can help in protecting against creditors in the event a spouse passes away
- Homestead Exemptions may only be used on a homeowners’ primary residence
- The rules and protections vary on a state-by-state basis
How Florida Homestead Exemptions Work?
On your primary Florida residence, you can reduce your overall property taxes on that property by applying for a homestead property tax exemption. Your homestead exemption is based on the assessed value of your property as deemed by the local government tax assessor’s office. This tax can be either a fixed value amount or a percentage of the property’s total value.
For properties in the state of Florida, an exemption of $25,000 is applied to the initial $50,000 of the assessed value of the property if it is your permanent residence and you owned the property on January 1 of the tax year. All taxes are included in this exemption which includes school district taxes. There is an additional $25,000 that will be applied if your assessed value is between at least $50,000 and $75,000 and this exemption will not be applied to the school district tax.
For a full breakdown of rules, regulations and eligibility visit the links below:
https://floridarevenue.com/property/pages/taxpayers_exemptions.aspx
https://www.pbcgov.org/papa/homestead-exemption.htm
Tax Portability
Tax Portability in Florida refers to the homeowners’ ability to transfer a portion of the previous homesteaded property to a newly established one. To qualify for Tax Portability, a homeowner must already have an existing homestead exemption in place on another property.
How Does Tax Portability Work in Florida?
- If the new residence that you purchased has a market value higher than your previous home, then the amount of portability is determined by subtracting the assessed value of the previous home from its market value.
- Homeowners have 3 years to transfer the previous assessment difference to the new homesteaded property.
For all your real estate questions and needs Preferred Residential Properties is here to guide you. Reach out to our offices at 561-747-8987 or email us at info@prpjupiter.com.
