First-Time Homebuyer Checklist: 10 Steps to Buying a Home in Florida
Navigate the homebuying process in Florida with our essential checklist. Discover 10 steps to make your first home purchase go smoothly.
8 Min
Buying a home in Florida comes with some of the most powerful tax benefits in the country—if you know how to use them. The Homestead Exemption and Save Our Homes Portability rules can save homeowners thousands each year, but most buyers only learn about them after closing. In this guide, we'll break down exactly how Florida's property tax system works, what the exemptions mean, and how to take your savings with you when you move.
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Understanding Florida’s property tax system starts with knowing how your tax bill is determined. Taxation of real property in Florida involves levying property taxes on both the land and any structures on it, based on legal ownership. Unlike some states that use simple flat rates, Florida uses a combination of assessed value, exemptions, and local millage rates to calculate what you owe.
Your property taxes are based on your home’s assessed value, which is different from its market value. The property’s assessed value is determined by the county property appraiser and serves as the basis for taxation. This figure can be lower than what you could sell your home for, especially if you’ve lived there for several years.
The taxable value is your assessed value minus any exemptions you qualify for. The property’s taxable value is the amount subject to taxation after exemptions are applied. This is the number used to calculate your actual tax bill. Local governments then apply their millage rates (expressed as dollars per $1,000 of taxable value) to determine how much you pay. The property’s taxable value is taxed at the applicable millage rate.
Property taxes vary significantly by county and municipality because each local government sets its millage rates. For example, Miami-Dade County might have different rates than Pinellas County, and cities within those counties can add their millage on top of the county rate.
The person who owns the property, also known as the property owner, is responsible for paying property taxes. Legal ownership of the real property, including both the land and any improvements, is required for tax purposes.
The Property Appraiser’s office is at the heart of Florida’s property tax system, ensuring that homeowners receive the full benefit of the homestead exemption and other property tax exemptions available under Florida law. When you apply for a homestead exemption, the Property Appraiser is responsible for determining your property’s assessed value, which forms the basis for calculating your property taxes. This assessed value is carefully established each year and is often lower than your home’s market value, especially if you’ve benefited from the Save Our Homes (SOH) cap.
One of the Property Appraiser’s key duties is to review homestead exemption applications and verify that property owners meet all eligibility requirements. This includes confirming that the property is your permanent residence, that you hold legal title or beneficial title to the homestead property, and that all necessary documentation is provided. The office ensures that only eligible homeowners receive the property tax exemption, helping to keep the system fair and effective.
Beyond the initial exemption, the Property Appraiser also applies the Save Our Homes cap, which limits annual increases in your property’s assessed value. This cap is crucial for keeping your property taxes predictable and manageable, even as your home’s market value rises. If you decide to move, the Property Appraiser’s office will help you transfer your accumulated assessment difference—also known as portability—to your new home, allowing you to continue saving on property taxes.
Throughout the process, the Property Appraiser’s office serves as a valuable resource for property owners. Whether you’re filing a new homestead exemption application, seeking to transfer your SOH benefit to a new property, or simply have questions about your property’s assessed value, the office provides guidance and support every step of the way. By accurately assessing properties and administering exemptions, the Property Appraiser helps local governments fund essential services while ensuring that eligible homeowners receive the tax relief they deserve.
The Florida Homestead Exemption is your first line of defense against high property taxes. This benefit can reduce your taxable value by up to $50,000, but it only applies to your primary residence. The exemption privilege grants the property owner important legal rights and benefits under Florida law.
To qualify for the Homestead Exemption, the following requirements are applicable:
The exemption works in two parts: the first $25,000 applies to all property taxes, while the second $25,000 only applies to non-school taxes. The exemption applies to the assessed value of your real property, reducing the amount subject to taxation. The total exemption amount is limited to $50,000, providing significant tax relief but with a cap.
Here’s a practical example: If your home has an assessed value of $300,000 and you qualify for the full Homestead Exemption, your taxable value drops to $250,000 for non-school taxes and $275,000 for school taxes. With an average millage rate of 20 mills, you’d save about $500-$1,000 annually.
Special exemptions and additional benefits may be available for active duty military service members, as well as for a surviving spouse or spouses of first responders killed in the line of duty.
Beyond tax savings, the Homestead Exemption provides additional legal protections. It shields your home from forced sale by creditors (with some exceptions) and can protect you from certain types of liens. The exemption privilege ensures these protections are conferred to eligible property owners.
The deadline to apply for the Homestead Exemption is March 1st. Missing this deadline results in a waiver of the exemption privilege for that tax year, so timely application is essential.
Filing for your Homestead Exemption is straightforward, but timing matters. You must apply by March 1st of the year you want the exemption to take effect. The good news is that once approved, it automatically renews each year as long as you continue to meet the requirements. However, a new application is required if there is a change in ownership, such as a sale, transfer to a trust, or if you move to a new property.
Visit your county property appraiser’s website to download the application form. Eligible persons can submit their applications either by mail, in person, or file online through the official portal. Applications must be filed by the March 1st deadline to qualify for the exemption. You’ll need to provide:
Be sure to check which requirements apply to your specific situation. Many counties allow online applications, making the process even more convenient. Avoid common mistakes like missing the March 1st deadline or failing to update your information if you get married or divorced. Note any changes in your status or property details and report them promptly to avoid issues with your exemption.
If you’re a first-time homebuyer, this is just one of many important steps in the process. Check out our First-Time Homebuyer Checklist: 10 Steps to Buying a Home in Florida for a complete guide to Florida home purchases.
For questions or assistance, contact your county property appraiser’s office directly by phone, email, or by visiting their office.
The Save Our Homes amendment is perhaps Florida’s most valuable long-term tax benefit. Established by a constitutional amendment to the Florida Constitution, this constitutional provision caps annual increases in your home’s assessed value at 3% or the Consumer Price Index, whichever is lower.
Here’s why this matters so much: Florida’s real estate market has seen dramatic appreciation over the past decade. Without the SOH cap, homeowners would face massive tax increases as their property values soared. Instead, the cap keeps your property's assessed value from increasing, making them manageable and predictable.
The long-term savings can be substantial. Consider a homeowner who bought a $200,000 house in 2015. If that home is now worth $400,000, their property's assessed value might only be $260,000 due to the SOH cap. That difference translates to thousands in annual tax savings, as only the capped assessed value is taxed.
The SOH benefit accumulates over time, creating what’s called “SOH benefit” or “portability benefit.” This is the difference between your home’s current market value and its capped assessed value. The cap is applicable as long as the property remains your homestead and you meet the qualifying criteria. You can take this benefit with you when you move, which brings us to portability.
Portability allows you to transfer up to $500,000 of your accumulated SOH benefit, known as the portability amount, to a new Florida residence. This means you don’t lose years of tax savings when you move within the state.
Here’s how it works: Let’s say you’ve lived in Miami for 15 years, and your home’s assessed value is $300,000 while its market value is $500,000. Your SOH benefit is $200,000. When you sell and buy a new home in Fort Lauderdale for $450,000, you can transfer that $200,000 benefit, making your new home’s assessed value $250,000 instead of $450,000. The benefit is transferred from your former homestead or previous property to your new home.
To be eligible, you must have ownership of both the previous property and the new property. Portability is applicable when you move from a previous property with a homestead exemption to a new Florida residence within the allowed timeframe.
The portability benefit must be used within three years of selling your previous homesteaded property. You can move to any county in Florida, but you must apply for portability in addition to your regular Homestead Exemption. The portability application must be filed with the property appraiser’s office by the required deadline. Note: Be sure to note all important deadlines and requirements to ensure you receive your portability benefit.
Filing for portability requires completing Form DR-501T, “Transfer of Homestead Assessment Difference.” You’ll need to provide documentation from both your old and new county property appraisers, including proof of ownership for each property. Eligible persons can file online for portability through the property appraiser’s website, which is a convenient option. The application must be filed by the deadline to qualify for the benefit.
The process is more complex if you’re moving between counties, as the appraisers must coordinate to verify your previous SOH benefit. If there are changes in ownership or you are applying for a different property, a new application is required. Certain requirements are only applicable in specific situations, such as changes in title or use of the property. This is why it’s smart to start the paperwork early and consider applying for both portability and your new Homestead Exemption simultaneously.
Pro tip: Time your move strategically. If you close on your new home before March 1st, you can get both the Homestead Exemption and portability for the same tax year, maximizing your first-year savings. Note any changes in ownership or eligibility details when submitting your application.
For questions or assistance, contact your local property appraiser’s office by phone, email, or in person.
Smart tax planning starts before you even make an offer. When house hunting, don’t rely on the previous year’s tax bill to estimate your future payments. A property that hasn’t been homesteaded could see significant tax increases once you establish it as your primary residence and it’s reassessed at current market value.
Many real estate listings show property tax estimates, but these are often based on the current owner’s situation. If they’ve lived there for decades with SOH protection, your taxes could be much higher. Always ask your realtor about the property’s homestead status and get a realistic tax projection. Note important deadlines and any changes in ownership or use, as these can impact your eligibility for exemptions.
Consider timing your move carefully. Purchasing before March 1st allows you to claim the Homestead Exemption for that tax year, while moving after that date means waiting until the following year. This timing can affect your first-year tax bill significantly. If the application is not filed by the March 1 deadline, there will be a waiver of the exemption for that year.
When selling, remember that you have three years to use your portability benefit. This gives you flexibility to rent temporarily or take time finding the perfect new home without losing your accumulated tax savings. If there is a change in ownership, such as selling or transferring the property, you must update records, and a new application must be filed to maintain exemption benefits.
For those considering refinancing to access home equity or lower payments, understanding your property’s true tax liability is crucial for accurate budgeting. Our guide on Top Signs It’s Time to Refinance Your Mortgage in 2025 can help you explore your options. These tips apply to buyers, sellers, and property owners who want to maximize their tax savings and avoid surprises.
Want to see how much the Homestead Exemption or portability could save you? Apply here for personalized guidance.
For questions or assistance, contact your local property appraiser’s office directly.
Florida's property tax system rewards long-term homeownership and strategic planning. The Homestead Exemption provides immediate savings and legal protections, while the Save Our Homes cap builds wealth over time by limiting tax increases. Portability ensures you don't lose these benefits when you move within the state.
These programs can make the difference between affordable homeownership and financial stress. A homeowner who fully utilizes these benefits might save $2,000-$5,000 annually compared to someone who doesn't understand the system.
Whether you're buying your first home or relocating within Florida, take advantage of these savings opportunities. File your applications on time, understand the rules, and plan your moves strategically. Your wallet will thank you for decades to come.
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