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Blog > What Is The Florida Homestead Act And How Can It Save You Money?

What Is The Florida Homestead Act And How Can It Save You Money?

The Florida Homestead Act is a law that can help new homeowners save money on property taxes and protect them from creditors. Learn how this law works and how it can benefit you as a new home builder in Florida.

Florida is a great place to live. It’s also a great place to visit. The state of Florida gives special advantages to folks who choose to make Florida their permanent home. One of those advantages is called the Florida Homestead Act. In this guide, we’ll show you what the act is, how you can qualify and what benefits you can expect.

What is the Florida Homestead Act?

The Florida Homestead Act is a state law that provides for reduced property taxes for Florida residents. Under the law, Florida residents can deem their primary residence their “homestead” in order to receive a maximum exemption of $50,000 of the assessed value. That exemption saves Florida residents on their annual property tax bill.

What are the qualifications for the Florida Homestead Act?

In order to receive the homestead exemption provided by the Florida Homestead Act, the property must be the residents primary residence as of January 1st of a given year. Any type of home is eligible including a home, townhouse, condo or mobile home. (We’ve got them all in Santa Rosa County!)

The property owner must also be a permanent resident of Florida and a US citizen. The exemption must be filed by March 1st of the tax year in question. Occasionally, the property appraiser’s office can work with extenuating circumstances such as a military deployment or medical emergency. 

Only one homestead exemption will be granted per resident per year.

What are the benefits of the Florida Homestead Act?

If you are granted the homestead exemption, you will be granted up to a $50,000 exemption off of the assessed taxable value of the property. That means you will save money each year on your property taxes by being a Florida resident and owning your home. 

The act can also provide protection from creditors, allow certain homeowners to pass their property to a surviving spouse without being claimed by creditors and, in some cases, be a stepping stone to other exemptions.

How to Calculate Your Homestead Exemption

Calculating how much you might actually reduce your property tax bill involves understanding the millage rate in Santa Rosa County. The millage rates, which are used to calculate property taxes, include what the county uses to fund things like fire departments, public schools, water and sewage, special projects and more. 

For example, in Holley/Navarre the total millage rate is 11.6814 according to the property appraiser’s website. If a property in Navarre had an assessed value of $300,000, the homeowner would owe Santa Rosa County $3500 in taxes. By receiving the homestead exemption, the property owner and resident could reduce their bill to $2921.

In order to calculate your potential savings, simply multiply your assessed value by the millage rate and then divide by 1,000. Next, do the same equation but take $50,000 off of your assessed value.

We hope this guide has helped you understand the Florida Homestead Act a little better. Buying a home can be complicated, but it is nice to know there are some perks you can look forward to as a Florida resident and property owner.

The Florida Homestead Act can apply to your new construction home as of the first January you’re living in it. Henry Company Homes has been building homes in Northwest Florida for 38 years. We’ve built over 12,000 homes in the area and are currently building homes and townhomes in Milton, Navarre, Pace and Gulf Breeze. If you’re interested in purchasing a new home, we’d love the opportunity to chat with you. 

What Is The Florida Homestead Act And How Can It Save You Money?

The Florida Homestead Act is a law that can help new homeowners save money on property taxes and protect them from creditors. Learn how this law works and how it can benefit you as a new home builder in Florida.

Florida is a great place to live. It’s also a great place to visit. The state of Florida gives special advantages to folks who choose to make Florida their permanent home. One of those advantages is called the Florida Homestead Act. In this guide, we’ll show you what the act is, how you can qualify and what benefits you can expect.

What is the Florida Homestead Act?

The Florida Homestead Act is a state law that provides for reduced property taxes for Florida residents. Under the law, Florida residents can deem their primary residence their “homestead” in order to receive a maximum exemption of $50,000 of the assessed value. That exemption saves Florida residents on their annual property tax bill.

What are the qualifications for the Florida Homestead Act?

In order to receive the homestead exemption provided by the Florida Homestead Act, the property must be the residents primary residence as of January 1st of a given year. Any type of home is eligible including a home, townhouse, condo or mobile home. (We’ve got them all in Santa Rosa County!)

The property owner must also be a permanent resident of Florida and a US citizen. The exemption must be filed by March 1st of the tax year in question. Occasionally, the property appraiser’s office can work with extenuating circumstances such as a military deployment or medical emergency. 

Only one homestead exemption will be granted per resident per year.

What are the benefits of the Florida Homestead Act?

If you are granted the homestead exemption, you will be granted up to a $50,000 exemption off of the assessed taxable value of the property. That means you will save money each year on your property taxes by being a Florida resident and owning your home. 

The act can also provide protection from creditors, allow certain homeowners to pass their property to a surviving spouse without being claimed by creditors and, in some cases, be a stepping stone to other exemptions.

How to Calculate Your Homestead Exemption

Calculating how much you might actually reduce your property tax bill involves understanding the millage rate in Santa Rosa County. The millage rates, which are used to calculate property taxes, include what the county uses to fund things like fire departments, public schools, water and sewage, special projects and more. 

For example, in Holley/Navarre the total millage rate is 11.6814 according to the property appraiser’s website. If a property in Navarre had an assessed value of $300,000, the homeowner would owe Santa Rosa County $3500 in taxes. By receiving the homestead exemption, the property owner and resident could reduce their bill to $2921.

In order to calculate your potential savings, simply multiply your assessed value by the millage rate and then divide by 1,000. Next, do the same equation but take $50,000 off of your assessed value.

We hope this guide has helped you understand the Florida Homestead Act a little better. Buying a home can be complicated, but it is nice to know there are some perks you can look forward to as a Florida resident and property owner.

The Florida Homestead Act can apply to your new construction home as of the first January you’re living in it. Henry Company Homes has been building homes in Northwest Florida for 38 years. We’ve built over 12,000 homes in the area and are currently building homes and townhomes in Milton, Navarre, Pace and Gulf Breeze. If you’re interested in purchasing a new home, we’d love the opportunity to chat with you.