Save Money and Secure Your Home with a Homestead Exemption

By Michael Ulloa

The Happy Florida Homes team at Keller Williams Realty is a dynamic trio dedicated to providing unparalleled real estate services. Led by Listing Specialist Michael, Buyer Specialist Brianna, and Executive Admin Amanda, this cohesive team brings a wealth of expertise, enthusiasm, and attention to detail to ensure their clients find their dream homes with joy and satisfaction.

Filing your homestead exemption is not just a bureaucratic checkbox; it’s a strategic move that can save homeowners significantly on property taxes, provide limits on tax increases, and offer crucial asset protection. Let’s dive into what a homestead exemption is and the top three benefits of securing one for your primary residence.

A homestead exemption allows you to claim your property as your primary residence, notifying local and federal authorities of your domicile status. This designation unlocks several financial benefits and protections.

Benefit #1: Reduced Property Taxes

The first and perhaps most appealing advantage is the potential reduction in your property’s taxable value. For instance, if your home is appraised at $300,000, filing a homestead exemption could lower its taxable value to $250,000. This decrease directly translates to lower property taxes and, for those with a mortgage, reduced monthly payments.

Benefit #2: Capped Tax Increases

The “Save Our Homes” Act prevents unchecked increases in property taxes year over year. With this act, your property taxes on a primary residence can only rise by a maximum of 3% annually, regardless of how much the actual market value of your home increases. Without this exemption, you could see your taxes and, subsequently, your mortgage payments, skyrocket with the real estate market.

Benefit #3: Asset Protection

Filing for a homestead exemption also means safeguarding your home from forced sales due to debts, such as credit card balances or personal loans. While obligations related to the property itself (like your mortgage or home equity loans) can still lead to a forced sale, other types of debt cannot threaten your ownership of the home.

To qualify, you must own and occupy the property as your primary residence from January 1st of the filing year. This cannot be applied to vacation homes, second homes, or investment properties. It must be your main living space.

Filing your homestead exemption is a straightforward process that can lead to substantial financial savings and security. If you’re contemplating selling your home or curious about how to leverage your homestead exemption fully, please reach out. You can call us or send us an email and our team is ready to guide you through maximizing the benefits of your property ownership.

For more detailed information on the homestead exemption and assistance in filing, don’t hesitate to contact us. Let’s ensure your home is not only a place of comfort but also a smart financial decision.