How do I apply for the Florida Homestead Exemption?

To apply for the Florida Homestead Exemption, file Form DR-501 with your county Property Appraiser's office by March 1 of the year you're seeking the exemption. You'll need proof of ownership (your recorded deed) and proof of Florida residency (Florida driver's license, voter registration, and vehicle registration). Most title companies assist new homeowners with the initial filing at closing.

How much does the Homestead Exemption save me?

The Florida Homestead Exemption saves most homeowners $700 to $1,100 per year in property taxes. The first $25,000 of assessed value is fully exempt from all property taxes, while the second $25,000 is exempt from all taxes except school district taxes. Exact savings depend on your local millage rates. For a $350,000 home in Palm Beach County, expect roughly $700 to $925 in annual savings.

Can I get the Homestead Exemption on a second home?

No. The Florida Homestead Exemption is available only for your primary residence. You can only have one homestead exemption at a time, and you must actually live in the home as your permanent residence. Second homes, vacation homes, and investment properties do not qualify. The Save Our Homes cap and portability benefits also apply only to your homesteaded property.

What Is the Florida Homestead Exemption?

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 $50,000 exemption

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 the first $50,000 of your home's assessed value from property taxes. The first $25,000 is exempt from all property taxes. The second $25,000 is exempt from all taxes except school district taxes. On a $350,000 home, this means you're taxed on $300,000 to $325,000 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). 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 $50,000 exemption saves you about $550 to $925 per year, depending on your exact location and which taxing authorities apply. The second $25,000 exemption (which only exempts non-school taxes) saves an additional $150 to $200 per year. Total annual savings: roughly $700 to $1,100 for most homeowners. Over a decade, that's $7,000 to $11,000 in savings.

What is the Florida Homestead Exemption?