FLORIDA HOUSING ASSISTANCE AND RESOURCES

We recommend you visit the following real estate sites before buying, selling a home, renting an apartment or other real estate transaction within Florida:
Miami Dade Property Tax Collector
Palm Beach Property Tax Collector

Florida Homestead Exemption: A Boon Until you Sell! Florida’s Homestead Tax exemption ($25,000 of assessed value is not taxed for one’s primary home) also limits real estate tax increases to the lesser of that year’s increase in the Consumer Price Index or 3%. This is a significant advantage for Florida residents, who escape the significant tax increases which non-residents, owners of second homes and investors face. The downside, however, is that when a resident sells his primary residence, to upgrade or to relocate within the state, he or she may of course apply for a new Homestead Tax exemption, but this would be based on the assessed value of the new home. This can mean a significant increase in taxes for someone who, for example, bought a home assessed at $200,000 five years ago and whose taxes have increased no more than 3% a year, and who sells that property for $500,000, and acquires a new home assessed at $500,000. Annual increases under a new Homestead Tax exemption again will be capped at 3%, but the starting assessed value will be much higher. A solution to this problem would be for a seller to first put aside a portion of his profits, invest them conservatively, and hold this amount as a reserve to pay his increased real estate tax before upgrading to a property assessed at a higher value.