Florida law provides for various homestead tax exemptions, including an exemption for the first $25,000 in value, with a partial exemption for the next $25,000 in value.14 The Florida attorney general has issued an opinion that addresses the inconsistency between the statutes addressing the Save Our Homes Cap and those addressing the ad valorem property tax exemption.15 It is possible to interpret the homestead exemption statutes in a manner that results in a loss of the homestead ad valorem tax exemption when there is a change of ownership, but the change in ownership would be exempt under the Save Our Homes Cap. However, attorney general opinion 2007-08, suggests that the exception in the Save Our Homes Cap statutes does not apply to the general homestead tax exemption. To preserve the homestead tax exemption for the full value of the property, the existing owner must be the only one who claims the homestead exemption before and after the transfer. When there are multiple owners, the homestead tax exemptions only apply to the share of the owners who qualify. For example, if the property is worth only $50,000 and there are two owners, but only one lives in the home, the exemption only applies to the $25,000 share of the resident owner. Thus, taxes would be lower if both owners made the home their homestead residence.
The Homestead Tax Exemption
Every person who has legal or equitable title to real property in the State of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible to receive a homestead exemption of up to $50,000.
Who qualifies for homestead exemption in Florida?
It is the person's primary residence and it serves as his permanent address.
What is Homestead Property?
Homestead Tax Exemption protects a primary residence from forced sale – that is, having to sell the home to pay off creditors.
What does Homestead Tax Exemption do?
If a Quitclaim deed transaction results in a change of ownership, the exemption will be lost. However, some transactions allow the owner to transfer property without losing the exemption.
Homestead Tax Exemption in a QCD
It is when the new deed holder will not have to pay any transfer taxes.
What is an Exemption to a QCD?
To preserve the homestead tax exemptions for the full value of the property, the existing owner must be the only one who claims the homestead exemption before and after the transfer.
How can Homestead Tax Exemptions be qualified for the full value of the property?
The homestead tax exemptions only apply to the share of the owners who qualify. All owners must qualify as a homestead owner including primary residence and the residence serving as a permanent address for each owner. If each owner is not considered a homestead owner, then for each owner who is, they will receive their percentage of the tax exemption.
No. If you own more than one property you must choose one of these residences to be your primary and permanent property to be considered to be a homestead property.
Can I have more than one homestead property?
When does the Homestead Tax Exemption apply when there are multiple owners?