Florida Homestead Exemption Example

Upon application, Florida provides a $25,000 exemption off the assessed value of your primary residence.

This applies to all property taxes, including school taxes.

An additional exemption of to $25,000 applies to the assessed value over $75,000.

This second exemption does not apply to school taxes, only county, city, and other local taxes.

Example:

• Market value: $250,000
• Assessed value: $250,000 (before exemptions)

Homestead exemptions applied:

• First $25,000 reduces assessed value to $225,000 for all taxes.
• Second $25,000 reduces assessed value further to $200,000, but only for non-school taxes.

Once you qualify for the homestead exemption, the Save Our Homes cap limits annual increases in assessed value to the lesser of 3% or the change in the Consumer Price Index (CPI), whichever is less. This protects homeowners from rapid increases in taxable value.

Year 1 – You Buy the Home

• Market Value: $300,000
  
• Assessed Value: $300,000 (first year = same as market value)
  
• Homestead Exemption: $50,000
  
• Taxable Value: $300,000 – $50,000 = $250,000
  
• Tax Rate: 1.5%
  
• Property Tax: $250,000 × 0.015 = $3,750

Year 2 – Market Value Rises 10%

• New Market Value: $330,000
  
• SOH Cap: 3% (CPI = 6%, so lower = 3%)
  
• New Assessed Value: $300,000 × 1.03 = $309,000
  
• Homestead Exemption: $50,000
  
• Taxable Value: $309,000 – $50,000 = $259,000
  
• Property Tax: $259,000 × 0.015 = $3,885

Even though the market value rose 10%, the assessed value only went up 3%.