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According to recent estimates from the US Census Bureau, nearly six percent of Americans own a second home, typically within 150 miles from where they primarily reside. While this is a surprising trend in some ways, it calls into light an important benefit to homeownership- homestead exemptions. These tax credits are an important incentive to homeownership and upkeep and are something real estate agents understand every well.
What is the Homestead Tax Exemption in Miami?
The homestead tax exemption essentially is a government-initiated property tax benefit aimed at helping homeowners keep their homes and enjoy a tax break in the process. The exemption can save homeowners up to $50,000 on their home’s taxable value. The first $25,000 of this exemption applies to all taxes and helps to offset how much homeowners pay at the end of the year for their properties. The second $25,000 does not include educational taxes and is available to homeowners with properties that are worth more than $50,000.
What Are the Requirements and Benefits?
Every person that owns a legally binding title to the livable property in Florida is eligible to receive up to the full amount of the homestead exemption. Not only does the exemption help reduce taxes each year in exchange for living in the state, but it can also help with other finance areas as well. The exemption can offer protection of the residents’ home and the value of their property from property taxes, creditors, and spousal ownership. Homestead exemption ensures that a surviving spouse can claim the home and not end up homeless when their spouse dies. All questions about this exemption can be answered by real estate agents in the state.
What Are the Steps to Apply for the Exemption?
To qualify for a Homestead Exemption, you must live predominantly on the property as of January 1st of the year you are trying to claim the exemption for. Once you receive the Homestead Exemption, you do not have to re-apply. It will be automatically renewed each year as long as you maintain the property as your primary place of residency within the state. It is the legal responsibility of the homeowner to notify the Property Appraiser if the ownership status changes if they sell the home, rent it out, or otherwise are not living there the majority of the year. Property owners who want to know if they qualify for this and other exemptions need to contact their local Property Appraiser’s Office for all the necessary forms and documents.
Taking advantage of homestead exemptions is a major benefit for homeowners. Contact your local real estate agents and call the local property Appraiser today to get started!