Various laws by the United States government ensure its citizens’ protection and security. They are created specifically to help Americans. One such legal regime is the Homestead Exemption law. As the name suggests, it is a financial relief from tax for property ownership.
There are still more aspects to uncover about Homestead Exemption. So, let’s understand its application details, documents, and qualifications.
What is Homestead Exemption?
The concept of Homestead Exemption is straightforward. It allows tax reduction by reducing your property’s assessed value. As a result, you only need to pay a few tax amounts. The law is remarkable for people dealing with circumstantial crises because Homestead Exemption promotes security.
Individuals with Homestead or legal property in Florida can apply for this exemption. There are several types of Homestead Exemption available in Florida.
- People in Florida will get a $25,000 worth exemption if they have a property whose assessed value is $50,000. Remember, you must also own this property on tax year, i.e., the First of January. Moreover, it covers your school district taxes.
- Individuals with property’s assessed value between $50,000 and $75,000 will get an extra $25,000 exemption according to a homestead exemption rule. However, it won’t cover your school district taxes.
As you see, your Exemption entirely depends on your property’s assessed value. Therefore, you must apply accordingly after calculating your homestead value. So, let’s look at Florida’s homestead exemption application process.
Florida Homestead exemption Application Process (In Steps)
You can apply for Florida homestead exemption in three ways. So, you can opt for any method of the three. Let’s look at them one by one.
- Visit the ‘ecure.co.palm-beach.fl.us’ website.
- Create your account.
- Login with your account if you are already a user.
- File all the necessary documents for qualifications.
- Request for PIN (permanent identification number.
- Begin with online application filing.
- Visit the ‘ecure.co.palm-beach.fl.us’ website.
- Fill out the PDF with the correct details as available on the website.
- Take the physical copy of the PDF.
- Mail it to ‘Palm Beach County Property Appraiser’s Office, Exemption Services, 1st Floor, 301 N. Olive Ave., West Palm Beach, FL 33401.’
- Visit the service center in your locality.
- Contact the associate at the center and fill out your application form. Bring all your documents.
The application deadline is 1st March. So, ensure to submit your application by any of the given methods before the deadline.
What are the Application requirements?
Below mentioned are the documents all applicants applying for Florida homestead exemption must have:
- Property owners must produce their Florida driving license.
- Applicants who do not drive and don’t have a driving license can submit their legal Florida ID instead.
- Carry your Florida Car Registration document.
- People who vote must submit their Florida Voting ID.
- Non-US citizens, i.e., immigrants applying for this exemption must present their immigration documents.
The documents you are submitting must show your homestead property address. Applicants qualifying for the homestead exemption get 3% CAP.
Who is Eligible for homestead exemption?
It benefits the people in Florida by significantly reducing the property tax. Consequently, homeowners can skip paying the complete property tax. So, let’s glance at the qualification details.
- You must own a property in Florida.
- The property you wish to include under Homestead Exemption must be your permanent address.
- You will qualify if you reside in the property by January 1.
- You should have rented the property for less than 30 days.
The following candidates will get additional advantages:
- Disabled citizens
- Senior citizens
- Military service members who are presently on duty
- Disabled first responders
Applicants with any queries regarding the qualification for Florida Homestead Exemption must contact a tax preparer or CPA for more details. You can also visit a service center and get in touch with officials.
How does Florida’s homestead exemption work?
It is an excellent opportunity for property owners who want to save tax money because of financial crises. However, you might need clarification about how it works if you are a first-time applicant. Homestead Exemption is based on a tiered system and your property’s assessed value.
For instance, applicants with a $50,000 property get an exemption of up to $25,000 on taxes. So, you will get an exemption of $25,000 on the assessed value of all the property taxes. Furthermore, the remaining amount, i.e., $23,000, will be taxed generally according to law.
Additionally, they get a school district. Similarly, several exemptions are provided depending on your property value.
Another scenario is when your property is assessed at a $75,000 value. In such a case, you will get an exemption of $23,000 from the overall tax. At the same time, the remaining tax amount, i.e., $25,000, will be taxed generally.
Do both owners have to apply for homestead exemption in Florida?
The application for a married couple will be considered as one. So, only one property owner can apply. However, both spouses must provide their signatures.
What does it mean when a property is in a homestead?
Homestead refers to a property with additional land or a farmhouse, where the extra land is dedicated to fields or animals.
Can I claim a homestead exemption on rental property in Texas?
Homestead Exemption is unavailable on rental property in Texas. Candidates must be legal homeowners to claim this exemption.
According to Florida’s Homestead Exemption, the qualified candidates will get a tax reduction on the amount they are liable to pay. So, it won’t change their property’s assessed value or tax amount.
Apply if you are a legal property owner and possess all the essential documents. The deadline for the application is 1st March.