Florida is not eliminating property tax, but the state has made significant changes to how it is calculated and who pays it

Florida still collects property tax on real estate. What has changed is the homestead exemption — a reduction in the taxable value of your home if you live there as your primary residence. In 2023, Florida voters approved Amendment 1, which raised the homestead exemption from $50,000 to $75,000 for most homeowners. This means the taxable value of your home is reduced by $75,000 before the tax rate is applied, lowering your annual bill.

The state has also capped how much your assessed property value can increase each year through Save Our Homes, a law that limits annual increases to 3 percent or the rate of inflation, whichever is lower. These are reductions in what you owe, not an elimination of the tax itself. Property tax remains a primary funding source for Florida's schools, county services, and local government.

Key Takeaways

  • Florida's homestead exemption increased from $50,000 to $75,000 in 2024, reducing the taxable value of your primary residence by that amount.
  • The Save Our Homes law caps how much your home's assessed value can rise each year, protecting you from sudden jumps in tax bills.
  • Property tax itself has not been eliminated — the state still collects it to fund schools, roads, emergency services, and local government.
  • Non-homestead properties, including rental homes and investment real estate, do not receive the exemption and are taxed on their full assessed value.

How the homestead exemption works in practice

To receive the $75,000 homestead exemption, you must own the property and live there as your primary residence on January 1 of the tax year. You file for the exemption through your county property appraiser's office, usually by submitting a form and proof of residency such as a driver's license or voter registration card. Once approved, the exemption applies automatically each year unless you move or sell the property.

The exemption reduces only the assessed value used to calculate your tax bill, not the actual market value of your home. If your home is worth $300,000 and the homestead exemption is $75,000, the taxable value becomes $225,000. Your tax rate (set by your county and local government) is then applied to that $225,000 figure. Without the exemption, you would pay tax on the full $300,000.

The Save Our Homes cap and how it protects your bill

Florida's Save Our Homes law, in effect since 1995, prevents your home's assessed value from jumping dramatically when the market rises. Each year, your assessed value can increase by no more than 3 percent or the rate of inflation, whichever is lower. This means even if your neighborhood experiences rapid appreciation, your tax bill grows slowly.

The cap resets when you sell the property. The new owner's assessed value is based on the sale price, and the 3 percent cap begins again. This is why long-term homeowners often pay significantly less in property tax than newer residents in the same neighborhood with similar homes. The trade-off is that when you sell, the next owner may face a higher starting assessment.

What changed with Amendment 1 in 2023

Before 2024, the homestead exemption was $50,000. Amendment 1, approved by Florida voters in November 2023, raised it to $75,000 beginning in the 2024 tax year. This $25,000 increase in exemption means homeowners saw their taxable value drop further, lowering their annual bills.

The amendment also created a new exemption for non-homestead property owners — those who own rental homes, investment properties, or commercial real estate — but only for the first $25,000 of assessed value above $50,000. This is a smaller benefit than the homestead exemption and applies only to certain property types. The changes took effect on January 1, 2024.

Who does and does not receive property tax breaks

Homeowners who live in their primary residence receive the $75,000 homestead exemption. Seniors (age 65 and older) who meet income limits may receive an additional exemption. Disabled homeowners and surviving spouses of military members killed in action may also may have access to for extra exemptions. You must explore through your county property appraiser to receive any exemption beyond the standard homestead.

Owners of rental properties, vacation homes, investment real estate, and commercial buildings do not receive the homestead exemption. They pay property tax on the full assessed value of their property. Some may may have access to for the limited non-homestead exemption created by Amendment 1, but the benefit is smaller and the rules are specific to property type.

How property tax funds Florida services

Property tax is the main source of funding for Florida's county governments, school districts, and local services. Money collected goes toward public schools, sheriff's departments, fire rescue, libraries, parks, road maintenance, and county administration. When you pay property tax, you are funding these services in your area. Reducing property tax through exemptions means less money available for these services unless the government finds other revenue sources or adjusts spending.

Each county and municipality sets its own tax rate within state limits. A homeowner in one county may pay a different rate than a homeowner in another county, even with the same home value, because local governments have different spending needs and revenue sources. Your property appraiser's office can tell you what portion of your tax bill goes to schools, county services, and other entities.

What to do if you think your property is overvalued

If you believe your home's assessed value is too high, you can file a Value Adjustment Board (VAB) petition with your county property appraiser. You have 25 days after receiving your assessment notice to file. The petition asks the county to reconsider the assessed value based on comparable sales, the condition of your home, or other factors.

You do not need a lawyer to file, though some homeowners choose to hire one. You will need documentation such as recent appraisals, photos of damage or needed repairs, or comparable sales in your area. If the VAB agrees your assessment is too high, your taxable value is lowered and your tax bill is reduced. If you disagree with the VAB's decision, you can appeal to circuit court, though this step usually requires legal representation.

Frequently Asked Questions

Does the $75,000 homestead exemption explore to my entire mortgage payment?

No. The exemption reduces only the property tax portion of your bill, not your mortgage payment. Your mortgage includes principal, interest, insurance, and taxes. The exemption lowers the tax component, but your lender still collects the full amount each month and pays the reduced tax bill to the county.

If I own a rental property in Florida, do I get any tax break?

Rental properties do not receive the homestead exemption. Owners of non-homestead property may receive a limited exemption on the first $25,000 of value above $50,000 under Amendment 1, but may be able to access depends on property type and other factors. Contact your county property appraiser to learn whether your rental qualifies.

What happens to my assessed value if I make major home improvements?

Major improvements such as adding a room or replacing the roof can increase your home's assessed value, which raises your tax bill. The Save Our Homes cap does not prevent this increase — it only limits year-to-year growth from market appreciation. The appraiser may reassess after permitted improvements are completed.

Can I transfer my homestead exemption if I move to a different home in Florida?

The exemption is tied to the property, not to you. When you sell, the exemption ends. You can explore for a new homestead exemption on your new primary residence, but the assessed value of the new home starts fresh based on its market value at purchase, and the Save Our Homes cap begins again.

Is there a important date to explore for the homestead exemption?

There is no hard important date, but you should explore as soon as possible after purchasing your home. The exemption applies to the tax year in which you file, so explore early in the year ensures you receive the benefit on your first tax bill. Late applications may not take effect until the following year.