How the Homestead Exemption works
Florida's Homestead Exemption is one of the most valuable tax benefits available to homeowners. Here's exactly how it works and how to claim it.
The exemption: up to $51,411 in 2026
When you own a home in Florida and make it your primary residence (as of January 1 of the tax year), you can file for a Homestead Exemption that exempts up to $51,411 of your home's assessed value from property taxes in 2026. The first $25,000 is exempt from all property taxes. The additional exemption, inflation-adjusted to $26,411 for 2026 under Amendment 5, is exempt from all taxes except school district taxes. On a $350,000 home, this means you're taxed on roughly $300,000 of value instead of the full $350,000.
Save Our Homes (SOH) cap
The real long-term benefit is the Save Our Homes amendment. Once you have a Homestead Exemption, the assessed value of your home cannot increase by more than 3% per year or the Consumer Price Index, whichever is lower (the cap is 2.7% for the 2026 tax year). In a market where property values are rising 5-10% annually, this cap is incredibly valuable. A homeowner who has owned their home for 20 years might pay property taxes on an assessed value of $150,000 while their neighbor in the same house just sold for $400,000. This is why long-time Florida homeowners often have much lower tax bills than new buyers.
Additional exemptions
Florida offers additional exemptions on top of the standard $50,000. If you're a senior citizen (65+), you may qualify for an additional $50,000 exemption if your household income is below a certain threshold. Totally and permanently disabled persons, first responders with total and permanent disability, and veterans with service-connected disabilities may qualify for even more exemptions. Widows and widowers may also be eligible for a $5,000 exemption.
Portability: taking your SOH cap with you
One of Florida's most unique features is portability. If you sell your homesteaded home and buy a new one in Florida, you can transfer a portion of your SOH cap benefit to the new home. This means the tax savings you've built up over years don't disappear when you move. You can port up to $500,000 of assessed value difference to your new home. For long-time Florida homeowners, this is a huge deal and often makes upgrading to a more expensive home more affordable.
How to apply for the Homestead Exemption
- Own the home and make it your primary residence as of January 1 of the tax year
- File Form DR-501 with your county's Property Appraiser's office. In Palm Beach County, you can file online, in person, or by mail
- The deadline is March 1 of the year for which you're seeking the exemption. If you buy a home mid-year, you can file for the following year by the March 1 deadline
- Provide proof of ownership — typically your recorded deed (which your title company handles at closing)
- Provide proof of residency — Florida driver's license, voter registration, and vehicle registration showing the property address
How much does it save you?
In Palm Beach County, with a millage rate of roughly 18.5 mills (the combined county, city, school, and special district rates), the $51,411 exemption (2026) saves you about $700 to $1,100 per year, depending on your exact location and which taxing authorities apply. The first $25,000 (exempt from all taxes) does the heavy lifting, and the additional $26,411 (exempt from non-school taxes) saves extra. Over a decade, that's $7,000 to $11,000 in savings.
