Tax Benefits for home owners

As a real estate agent in Florida, I often get asked about the tax benefits of owning a house in the state. Florida is known for its beautiful beaches, warm weather, and no state income tax, but did you know that owning a house in Florida can also provide you with some significant tax benefits? In this blog, we will explore the different tax benefit options available to homeowners in Florida.

1. Homestead Exemption

One of the most significant tax benefits of owning a house in Florida is the Homestead Exemption. This exemption allows homeowners to reduce the taxable value of their property by up to $50,000. To qualify for this exemption, the property must be the primary residence of the homeowner, and they must have owned the property on January 1st of the tax year. The Homestead Exemption can save homeowners hundreds or even thousands of dollars in property taxes each year.

2. Save Our Homes Cap

Another tax benefit available to homeowners in Florida is the Save Our Homes Cap. This cap limits the amount that the assessed value of a property can increase each year for tax purposes. The cap is set at 3% or the rate of inflation, whichever is lower. This means that even if the value of your property increases significantly, your property taxes will not increase by more than 3% each year. The Save Our Homes Cap can provide homeowners with significant long-term tax savings.

3. Senior Citizen Exemption

Florida also offers a Senior Citizen Exemption for homeowners who are 65 years of age or older. This exemption provides an additional $50,000 reduction in the taxable value of the property. To qualify for this exemption, the homeowner must meet certain income requirements and have owned the property for at least 25 years. The Senior Citizen Exemption can provide significant tax savings for retirees on a fixed income.

4. Disabled Veteran Exemption

Florida also offers a Disabled Veteran Exemption for veterans who have a service-connected disability. This exemption provides a full property tax exemption for veterans who are 100% disabled and a partial exemption for veterans who are less than 100% disabled. To qualify for this exemption, the veteran must have been a resident of Florida at the time of their disability and must have been honorably discharged. The Disabled Veteran Exemption can provide significant tax savings for disabled veterans and their families.

In conclusion, owning a house in Florida can provide homeowners with significant tax benefits. The Homestead Exemption, Save Our Homes Cap, Senior Citizen Exemption, and Disabled Veteran Exemption are just a few of the tax benefit options available to homeowners in Florida. As a real estate agent, I always recommend that my clients consult with a tax professional to fully understand the tax benefits of owning a house in Florida and how they can take advantage of them.