Every person who owns and resides on real property in Florida on January 1 and makes the property their permanent residence is eligible to receive a homestead exemption of up to $50,722 for the 2025 tax year. The first $25,000 of this exemption applies to all property taxes, including school district taxes. The additional exemption, up to $25,722, applies to the assessed value over $50,000 and applies only to non-school taxes. As a result of Amendment 5, approved by voters in 2024, the value of this additional exemption will now be adjusted annually for inflation, starting in 2025, based on the Consumer Price Index (CPI). These combined exemptions can result in an estimated tax savings of approximately $800 annually.
Another benefit of homestead exemption is the “Save Our Homes” (SOH) cap. After your initial year of qualifying, the SOH cap takes effect and limits annual increases in your assessed value to no more than 3% or the Consumer Price Index, whichever is less. Over time with the SOH cap in place, you have the potential to build up a savings which is the accumulated difference between your market and assessed value. If you decide to move in the future and establish a new homestead, you may be eligible to transfer that savings. This is known as "Portability."