How to Lower Property Taxes in Florida for Homeowners

Property taxes can be a significant financial burden for homeowners in Florida, making it essential to explore ways to reduce them. This article outlines practical methods for lowering property taxes and maximizing savings through exemptions and strategies available to Florida homeowners.

Homestead Provisions

Florida’s homestead provisions offer tax exemptions on primary residences, reducing property tax obligations for eligible homeowners.

Eligibility Criteria

To qualify, the property must be the owner’s permanent residence as of January 1 of the tax year, and the owner must be a legal Florida resident. Proof of residency, such as a Florida driver’s license or voter registration, is required. The homestead exemption provides up to $50,000 in tax relief, with the first $25,000 applying to all property taxes and an additional $25,000 for non-school taxes on the assessed value between $50,000 and $75,000. Only one homestead exemption is allowed per individual or married couple, making it important to designate the primary residence correctly.

Filing Procedures

Homeowners must file Form DR-501 with the county property appraiser’s office by March 1 of the tax year to secure the exemption. Late applications may be accepted with a valid reason but could incur a penalty. Once approved, the exemption remains in effect as long as eligibility requirements are met. Changes in ownership or residency status must be reported to the property appraiser, as these can affect the exemption.

Reviewing Your Assessment

Reviewing your property’s assessed value is critical to managing taxes. The county property appraiser determines the taxable value of your home, and assessment notices are typically mailed in August. Compare your assessed value with recent sales of similar homes in your area. If discrepancies arise, you can contest the assessment by filing a petition with the Value Adjustment Board (VAB) within 25 days of the notice date. Evidence such as sales data or property condition reports can strengthen your case.

Portability Options

The Save Our Homes (SOH) benefit enables homeowners to transfer tax savings from one homestead property to another within Florida. The SOH cap limits annual increases in assessed value to 3% or the Consumer Price Index change, whichever is lower.

Homeowners have three years to transfer their SOH benefit after abandoning a previous homestead. The property appraiser calculates the difference between the market value and the capped assessed value of the original property, which becomes the portable amount. This amount reduces the assessed value of the new property, resulting in lower taxes. File Form DR-501T along with the new property’s homestead exemption application by March 1 to secure this benefit. Missing the deadline forfeits the portability option.

Additional Exemption Categories

Florida offers additional exemptions for specific groups of homeowners, further reducing tax liabilities.

Senior Residents

Seniors aged 65 or older as of January 1 of the tax year may qualify for an additional exemption of up to $50,000, depending on local government approval. Eligibility requires meeting income criteria, with a 2023 cap of $35,167. Seniors must submit Form DR-501SC annually, along with documentation verifying their age and income.

Disabled Individuals

Homeowners who are totally and permanently disabled may qualify for a full exemption on their homestead property. Those with partial disabilities may receive a $500 exemption. Applicants must submit Form DR-501A and provide a physician’s certification or Social Security Administration documentation to the property appraiser by March 1.

Veterans

Disabled veterans with a service-connected disability of 10% or more are eligible for a $5,000 exemption. Veterans who are totally and permanently disabled due to service-related injuries, as well as surviving spouses of veterans who died in the line of duty, may qualify for a full exemption. Submit Form DR-501DV with documentation from the U.S. Department of Veterans Affairs to the county property appraiser by March 1.

Agricultural Classification

Homeowners using their land for farming or other agricultural purposes may qualify for the agricultural classification, which assesses property based on agricultural use value rather than market value.

To qualify, the property must be actively used for bona fide agricultural purposes as of January 1 of the tax year. Activities such as crop production, livestock grazing, aquaculture, and timber harvesting are eligible. The property appraiser evaluates factors like parcel size, agricultural activity type, and operation intensity. Submit an application with supporting documentation, such as lease agreements or sales records, to the county property appraiser by March 1. Misuse or abandonment of agricultural activities can result in the loss of classification and potential rollback taxes. Maintaining consistent agricultural operations and detailed records is essential to avoid penalties.