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Understanding the Homestead Exemption in Northwest Florida
Owning a home in Florida comes with various benefits, and one of the most significant is the homestead exemption. This tax exemption is designed to reduce the property tax burden for homeowners who use their property as their primary residence. For homeowners in Okaloosa, Escambia, and Santa Rosa counties, understanding the homestead exemption will help maximize your savings and ensure compliance with local tax laws.
Let’s explore why it is important to you, and how to apply.
What is the Homestead Exemption?
The homestead exemption is a legal provision that allows homeowners to reduce the taxable value of their primary residence by up to $50,000. The first half applies to all property taxes, while the second half applies only to non-school taxes (such as taxes for county government, city/municipality, districts, emergency services, and infrastructure like roads and bridges). Additionally, Florida’s “Save Our Homes” cap limits yearly increases in a property’s assessed value to 3% or the percentage change in the Consumer Price Index, whichever is lower. This provides homeowners with long-term stability and protection against rising property values.
Who Qualifies?
To qualify for the homestead exemption, the property must be your permanent residence as of January 1 of the tax year. Applicants must be U.S. citizens or permanent residents, and only one homestead exemption is allowed per individual or married couple. Proof of residency is required, which may include a Florida driver’s license, voter registration, and/or utility bills. These documents verify that the property is your primary residence, ensuring compliance with the exemption requirements.
Depending on income requirements, seniors aged 65 or older may qualify for additional exemptions. Disabled veterans and those with disabilities may also have additional reductions in their property taxes. For example, a homeowner who qualifies for both the homestead exemption and a disability exemption could see significant reductions in their tax liability.
How to Apply & When to Renew
Applying for the homestead exemption is a simple and straightforward process. Application form DR-501, along with the necessary proof of residency documentation, must be filed with the county property appraiser’s office by March 1 of the tax year. For Okaloosa and Escambia County homeowners, applications can be filled out online through the property appraiser’s website. However, Santa Rosa County encourages first-time applicants to visit their office.
The homestead exemption for Okaloosa, Escambia, and Santa Rosa counties automatically renews each year, making it easy to maintain your benefits.
If your primary residence changes or the property is converted to a rental property, you are required to notify the Property Appraiser’s Office. Fines and penalties (including back taxes) may apply if you fail to update your status.
The homestead exemption is a great tool for reducing property taxes and protecting your home. Do you have any questions about filing or whether you qualify? Contact your county’s property appraiser’s office or ask your real estate agent.