Amazing Tax Savings: Understanding Florida’s Tax Benefits for Homeowners

As a Florida homeowner, you have access to some of the most generous property tax benefits in the nation. These advantages can significantly reduce your annual property tax burden and protect your home's assessed value from dramatic increases. Let's explore how these benefits can work for you.

The Power of Homestead Exemption

Florida's Homestead Exemption is a valuable tax benefit that can substantially reduce your property taxes. Available to permanent Florida residents, this exemption applies to your primary residence and must be in place as of January 1st of the tax year. The basic exemption removes the first $25,000 of your home's assessed value from ALL property taxes, and an additional $25,000 from non-school property taxes, for a total of $50,000.

To qualify, you simply need to be a permanent Florida resident and own and occupy the home as your primary residence. The application process is straightforward, with a deadline of March 1st of the tax year. Once approved, your exemption automatically renews each year as long as you maintain your permanent residence status.

Save Our Homes Protection

The Save Our Homes amendment provides crucial protection against rising property taxes by limiting annual assessment increases to 3% or the Consumer Price Index (CPI), whichever is lower. This protection applies to the assessed value, not market value, helping shield homeowners from dramatic tax increases in hot real estate markets. Better yet, this benefit stays with you even if you move within Florida through a provision called portability.

New for 2025: Amendment 5 Changes

The recent passage of Amendment 5 in the November 2024 election brings additional benefits to Florida homeowners. This important change to the Florida Constitution requires annual inflation adjustments to homestead exemption values for all levies except school district taxes. This ensures that your exemption values keep pace with rising costs, providing long-term protection against inflation.

Understanding Your Savings: A Real Example

Let's look at how these benefits work for a typical CitrusCraft home valued at $250,000:

Without homestead exemption, your property would be taxed on the full assessed value. However, with the homestead exemption, the first $25,000 is completely exempt from all property taxes, and an additional $25,000 is exempt from non-school taxes. This combination of exemptions results in a reduction of nearly 20% in your annual property tax bill!

For example, Citrus County’s property tax rate is one of the lowest in Florida at approximately $9.48 per $1,000 of assessed value for non-school taxes and $5.34 per $1,000 of assessed value for school taxes. If you are renting a home and don’t qualify for the Homestead Exemption, your landlord is paying over $3,700 in property taxes (and he will pass that cost on to you). Whereas if you own your home, you save over $600 on your property taxes from the Homestead Exemption.

Making the Move Easy

When you purchase a new CitrusCraft home, our team helps guide you through the homestead application process. We provide all necessary documentation and explain how to maximize your tax benefits. The application can be completed online with the Citrus County Property Appraiser or in person at their office. You'll need basic documentation such as your Florida driver's license, voter registration if applicable, and vehicle registration.

Additional Protections

Beyond the tax savings, your homestead status provides important protections for your home. These include protection against creditors and inheritance rights for spouses and minor children. You'll also enjoy peace of mind knowing your home is protected with stable, predictable property tax increases thanks to the Save Our Homes cap.

Start Saving Today

Understanding and utilizing Florida's homestead benefits is crucial for long-term financial planning. As your builder, CitrusCraft Homes is committed to helping you maximize these valuable tax advantages. We believe in not just building houses, but in helping our homeowners build financial security through every available benefit.

The combination of homestead exemption, Save Our Homes protection, and the new Amendment 5 inflation adjustments makes owning a CitrusCraft home even more affordable than you might think. Contact us today to learn more about building your new home and taking advantage of Florida's generous homestead benefits. Let us help you start saving while living in the home of your dreams.