Florida’s Homestead Exemption

Sunshine, warmth, and lack of state income taxes are several reasons why many people move to Florida, but another significant motive is Florida’s homestead property exemption. 

The exemption offers tax benefits and creditor protections to Florida residents that utilize the exemption. First and foremost, the property must be the homeowner's primary residence as of January 1st of the tax year. Some of the benefits of the homestead exemption include:

Tax Benefits – Decreases the taxable value of the property by up to $50,000. The exemption also limits a property’s annual assessed value to 3% or the Consumer Price Index—whichever is less.

Creditor Protection – Prevents the forced sale of a home from most unsecured creditors. 

Probate – The exemption outlasts one’s passing. Not only does the homestead status remain intact during estate administration, but it continues once beneficiaries take ownership of the property. Because a homestead is exempt from creditor’s claims, a homestead is not part of a decedent’s probate estate.

Restrictions on Devising – Florida limits one’s ability to transfer a homesteaded property without the consent of the surviving spouse and/or children.

While the homestead exemption provides many benefits, it can be quite complex. Zacharia Brown attorneys can offer expertise and guidance on the intricacies of Florida’s homestead exemption.