Flagler Beach Real Estate
Florida Tax Advantages
By Kendall Caputo
Looking for a Tax Friendly Place to Live?
Florida has it's advantages.
- No Income Tax
- No Capital Gains Tax
- No Inheritance Tax
- Homestead Exemption on Principal Residences.
- $50,000 Homestead Exemption. Every person who has legal title to a residential property and lives there permanently as of January 1 of current year qualifies for this exemption. You may apply in person at any time through the year, but the deadline is March 1 of the qualifying year.
- $500 Widow/Widower Exemption. A widow or widower who is a legal and permanent resident of Florida qualifies for this exemption.
- $500 Disability Exemption. People who are permanently disabled are eligible for this exemption.
- $5000 Disabled Veterans Exemption. U.S. Military personnel with a service-connected disability of 10% or more are entitled to this exemption.
Be aware that there could be significant changes in the property taxes on the home you are buying.
In Florida, state law limits the annual increase in the assessed value, not market value, of homesteaded property to 3% or the Consumer Price Index (CPI) whichever is less. This is also called Save Our Homes. When homesteaded property is sold, that limitation is removed and the property is reassessed. This results in a new assessed value.
If you purchase homesteaded property, the taxable value of the property can and probably will, increase the first year after sale, especially if it has been owned and homesteaded for several years by the same owner.
Assessed Value – Any Exemptions = Taxable Value
This information is very important to understand because if your taxes are paid by your mortgage company, you may be surprised by the increase in your monthly payment, due to the increase in your assessed value, which means a higher taxable value.
When there is a change in ownership, the assessed value will be brought up to the market value. This may include a name change on your deed. According to Section 193.155(3)
Florida Statutes, except as provided therein, property shall be assessed at just value as of January 1 of the year following a change of ownership. Therefore, adding or removing the name of an individual as a joint owner of the property can require the property’s assessed value to be reassessed at market value as of January 1 following the change of ownership if the new owner files for Homestead Exemption.
Do you want to benefit?
You need a local real estate expert to help. I specialize in assisting families relocate to the Sunshine State. If you are thinking about a move the time to contact Kendall is now! (386) 986-7091.