Florida is not eliminating property taxes, but the state has reduced what homeowners pay through exemptions and caps

Florida has not passed a law to abolish property taxes entirely. Instead, the state has expanded tax breaks for homeowners over the past several years. The most significant change is the homestead exemption, which allows owner-occupied homes to exclude a portion of their assessed value from taxation. Florida also caps how much the taxable value of a homestead property can increase each year — a rule called the Save Our Homes amendment — even when the market value rises faster.

These changes reduce what individual homeowners owe, but they do not eliminate property taxes. Counties still collect property tax revenue to fund schools, roads, emergency services, and other local infrastructure. The tax burden has shifted somewhat, with commercial properties and non-homestead residential properties (like rental units) paying a larger share of the total.

If you own a home in Florida and have not claimed the homestead exemption, you may be paying more than necessary. The exemption is not automatic — you must file for it with your county property appraiser's office.

Key Takeaways

  • Florida's homestead exemption removes a set dollar amount from your home's taxable value, reducing your annual property tax bill.
  • The Save Our Homes amendment caps annual increases in your home's assessed value at 3 percent per year, even if the market value climbs higher.
  • Property taxes still exist in Florida and fund local schools, emergency services, and infrastructure — they have not been eliminated.
  • You must file for the homestead exemption yourself; it does not happen automatically when you buy a home or move to Florida.

How the homestead exemption works in Florida

The homestead exemption allows you to exclude up to $50,000 of your home's assessed value from property taxation. This means if your home is assessed at $300,000, the taxable value becomes $250,000 instead. You pay property tax only on that reduced amount.

To claim the exemption, you must own the home as your primary residence and have established residency in Florida. You file a form called the Homestead Property Tax Exemption process with your county property appraiser's office. The important date is typically March 1 of the year you want the exemption to take effect, though some counties allow late filing with a penalty.

The exemption applies to the assessed value, not the market value. Your county appraiser determines the assessed value, which may differ from what you paid or what the home would sell for today. The exemption reduces the amount subject to tax, not the tax rate itself.

The Save Our Homes amendment and assessment caps

Even with the homestead exemption in place, your property's assessed value can still increase. The Save Our Homes amendment, passed in 1992, limits how fast that increase can happen. For homestead properties, the assessed value can rise no more than 3 percent per year, regardless of how much the market value jumps.

This cap remains in effect until you sell the home. When a new owner takes over, the property is reassessed at current market value, and the 3 percent cap begins again for that new owner. This is why long-term homeowners in Florida often pay significantly less in property tax than newer residents in similar homes nearby.

The cap protects you from sudden tax spikes if your neighborhood becomes more desirable or if development drives up property values. However, it also means your assessed value may lag behind the actual market value of your home by thousands of dollars.

What changed recently in Florida property tax law

In 2023, Florida increased the homestead exemption from $25,000 to $50,000, effective January 1, 2024. This change doubled the amount of value excluded from taxation for homeowners who claim the exemption. A homeowner with a $300,000 home now saves more in annual taxes than they did under the previous $25,000 exemption.

The state also created an additional exemption for seniors and disabled homeowners. Homeowners age 65 or older, or those who are permanently and totally disabled, may be able to claim a supplemental exemption on top of the standard homestead exemption, though the total cannot exceed the full assessed value of the home.

These changes reduced property tax bills for many Florida homeowners, but they did not eliminate property taxes. Counties adjusted their tax rates and budgets to account for the reduced revenue from homestead properties.

Who still pays property taxes in Florida

Property taxes remain a major funding source for Florida counties, schools, and special districts. Non-homestead properties — including rental homes, commercial buildings, vacant land, and investment properties — do not receive the homestead exemption or the 3 percent assessment cap. These properties are reassessed annually at market value and taxed at the full rate.

Homeowners who do not claim the homestead exemption also pay tax on the full assessed value without the exemption benefit. This can happen if someone is unaware of the exemption, misses the filing important date, or does not meet the residency requirements.

Renters do not pay property tax directly, but landlords pass the cost along through rent. Commercial tenants may negotiate who bears the property tax burden as part of their lease agreement.

How to claim the homestead exemption in Florida

Contact your county property appraiser's office to request the Homestead Property Tax Exemption process. Many counties allow you to file online through their website, by mail, or in person. You will need to provide proof of ownership (such as a deed or mortgage statement) and proof of Florida residency (such as a driver's license or utility bill).

The standard filing important date is March 1 each year. If you miss this date, some counties allow late filing, but you may lose the exemption for that tax year and face a penalty. File as soon as you purchase a home or establish residency in Florida to avoid delays.

Once approved, the exemption typically remains in effect as long as you own the home as your primary residence. You do not need to reapply every year unless your county requires it or your circumstances change.

Property tax rates and what your money funds

Property tax rates in Florida vary by county and by the specific taxing districts within each county. A single property may be subject to taxes from the county, the school district, a city or town, and special districts like water management or fire protection. Each entity sets its own tax rate.

School districts receive the largest share of property tax revenue in most Florida counties. The remainder funds county services (roads, courts, emergency management), city services (police, parks, utilities), and special districts. Without property tax, these services would require alternative funding sources or significant cuts.

You can find your specific tax rate and see how your tax dollars are divided by contacting your county property appraiser or visiting the county's website. The property tax bill you receive each year shows the breakdown by taxing authority.

Frequently Asked Questions

Do I automatically get the homestead exemption when I buy a home in Florida?

No. You must file the Homestead Property Tax Exemption process with your county property appraiser's office. The exemption does not take effect until you submit the form and it is approved. If you do not file, you will pay tax on the full assessed value of your home.

Can I claim the homestead exemption if I own a second home in Florida?

No. The homestead exemption applies only to your primary residence — the home where you live most of the time. If you own a second home or investment property in Florida, it does not receive the exemption or the 3 percent assessment cap.

What happens to my property taxes if I sell my home?

When you sell, the new owner's assessed value resets to the current market value, and the 3 percent cap begins again for them. Your property taxes end on the date of sale. The new owner must file for the homestead exemption if they want it.

Can Florida eliminate property taxes in the future?

Eliminating property taxes would require a constitutional amendment, which needs approval from Florida voters. While there have been proposals to further reduce property taxes or shift funding to other sources, no plan to abolish them entirely has advanced to a statewide vote. Property tax remains a core funding mechanism for local services.

How much will the $50,000 homestead exemption save me on my taxes?

Your savings depend on your county's tax rate, which varies. If your county's rate is 1 percent, the $50,000 exemption saves you $500 per year. At 0.8 percent, it saves $400. Contact your county property appraiser to learn your specific rate and calculate your potential savings.