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How Filing for Homestead Can Help You Save Big on Taxes

Friday, February 8, 2019   /   by Andy Mandel

How Filing for Homestead Can Help You Save Big on Taxes

Homestead was added to the Florida Constitution in 1992, and it protects your primary residence from creditors as well as lowers your taxes. On your homesteaded property, the county will take your assessed value and subtract $50,000 to get your taxable value. For example, if you have a $400,000 home, they’ll base your taxes off $350,000. This is a substantial savings you should take advantage of if you can.

On top of this, it puts a cap on how much the county can increase the assessed value of your home, maxing out at whichever is less: the consumer price index(CPI) or 3%. For example, if you bought a property for $100,000 in 2018 and it’s now worth $125,000, the county can only assess it at $103,000. This compounding effect can build up—if the market keeps rising but your assessed value can only go up by 3% each year, your taxes will stay low.

If you decide to sell, the next buyer will be able to assume your tax base for the remainder of the year. This means they’ll be more qualified to buy your home.

If you bought a property in 2018 (or before) and haven’t already filed for homestead, you need to do so before March 1. This is the hard deadline to file for it in our state. If you’re not sure if you already have homestead on your property, please contact me—I can look up your home and find out in a matter of seconds.

If you have not done so already, click the link below to follow for Homestead ONLINE in Broward County: http://www.bcpa.net/homestead.asp

or in Palm Beach County: https://secure.co.palm-beach.fl.us/papaefile/web/heapplication/login.aspx

If you have any other questions or need further information, feel free to reach out. I look forward to hearing from you soon.