Homestead Exemption in Naples, FL
What is homesteading in FL and what are the benefits of this?
Homeowners of Naples real estate are entitled to a $25,000 homestead exemption from the assessed value of the home for city, county, and school board taxes. Homeowners are entitled to an additional $25,000 exemption from city and county taxes (but not school board taxes) on the property’s assessed value between $50,000 and $75,000. The table below displays the applicable homestead exemption depending on the amount of assessed value.
Homesteaded properties with an assessed value of $75,000 or more are entitled to the entire $50,000 homestead exemption. Naples homes with an assessed value of $50,000 or less are entitled to the base $25,000 exemption.
The property tax exemption for a homestead is deducted from the assessed value of the property before property taxes are calculated.
What does it mean to ‘Homestead’?
Homesteading involves identifying one property in Florida as your primary residence. This means that you live in that property more than 6 months. ‘Homesteading’ entitles owners to a few distinct advantages.
- Married couples receive a $50,000 reduction in the assessed value of their home (singles get a $25,000 reduction). This means that the taxable value of the home is reduced by $50,000.
- The county is limited in raising assessed values by no more than 3% per year. This is part of the ‘Save Our Homes’ legislation that is now law.
Save Our Homes
The Save Our Home amendment of the Florida Constitution caps how much the assessed value of homesteaded property may increase in a given year.
According to Chapter 193, F.S., the just value of homesteaded property may be increased either 3 percent annually (based on the assessed value for the prior year); or the percentage change of the Consumer Price Index (CPI) for the preceding year, whichever is less.
The Save Our Home (SOH) benefit is the difference between the assessed value and the market value of a homestead property due to the annual limit on increases in assessed value. Effective 2008, the Save Our Home benefit is portable. Homeowners who have had the homestead exemption on their current home in either of the two preceding years can transfer their SOH benefit to a new home. A homesteaded property owner can transfer up to $500,000 of SOH benefit to a new homestead. Property owners moving to a more expensive home transfer up to the entire $500,000 benefit. Property owners moving to a less expensive home transfer the same proportion of tax savings realized in the previous homestead.
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