How the Florida Homestead Exemption Benefits New Homeowners in Sarasota
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Introduction: What Is the Florida Homestead Exemption?
One of the most valuable benefits available to Florida homeowners is the Florida Homestead Exemption. Whether you’re purchasing your first home or building a custom residence, this exemption offers substantial property tax savings and protects your home from certain types of creditors.
At Homes By Strong, we help custom home buyers in Sarasota navigate the complexities of this program. If you’re planning to purchase or build a home in Sarasota, it’s important to understand how the Florida Homestead Exemption works—and how it can benefit you.
What Does the Florida Homestead Exemption Do?
In simple terms, the Florida Homestead Exemption reduces the taxable value of your primary residence by up to $50,000. This means you pay less property tax each year, saving you money in the long term.
The exemption applies to homes valued at more than $75,000 and offers:
A $25,000 exemption on the assessed value of your home
An additional $25,000 exemption for homes valued over $75,000 for school taxes (not applicable to all properties)
Protection from certain creditors under Florida law, including bankruptcy proceedings and liens.
📊 The exemption doesn’t apply to second homes, investment properties, or vacation homes. You must use the home as your primary residence.
How Does the Homestead Exemption Benefit Sarasota Homeowners?
For Sarasota residents, the Florida Homestead Exemption offers several financial advantages:
1. Substantial Property Tax Savings
The most immediate benefit is the reduction in your property tax bill. Let’s break it down:
Home value under $75,000: You can apply for the basic $25,000 exemption.
Home value over $75,000: You qualify for the full $50,000 exemption (with some restrictions).
In Sarasota County, the average property tax rate is around 1.1% of the home’s assessed value. For example, on a $350,000 home, the property tax savings from the Homestead Exemption could be as high as $2,000 per year.
2. Protection from Rising Property Taxes (Save Money Year After Year)
One of the most beneficial aspects of the Florida Homestead Exemption is the “Save Our Homes” (SOH) cap, which limits the annual increase in the assessed value of your home to 3% or the rate of inflation, whichever is lower.
This means that even if property values in Sarasota increase substantially, your taxable value won’t rise too quickly.
🏠 For example, if you purchase a home in Lakewood Ranch or Myakka and property values increase by 10%, your taxable value increase will be limited to only 3% or the inflation rate.
3. Protection from Creditors
In addition to tax savings, the Homestead Exemption provides an important legal shield. Under Florida law, your home is protected from:
Most creditor claims
Foreclosure (in cases of personal debts)
Lawsuits (except in cases of fraud or unpaid property taxes)
This protection helps ensure that your home is secure, even if financial difficulties arise.
4. Ease of Filing
Applying for the Florida Homestead Exemption is relatively simple and can be done through the Sarasota County Property Appraiser’s office.
Steps to Apply:
Verify eligibility: You must be a permanent resident of Florida and live in the property as your primary residence.
File by March 1st: Applications for the Homestead Exemption must be submitted by March 1st of the tax year.
Provide documentation: You’ll need to provide proof of residency, such as a Florida driver’s license, voter registration, and utility bills.
📅 Don’t miss the deadline! If you move in after March 1st, you can still apply for the next year’s exemption.
5. Portability: Transfer Your Savings to Your New Home
If you already have the Florida Homestead Exemption and are purchasing a new home in Sarasota, you may be able to transfer your existing tax savings to your new home. This is called “portability.”
For example, if you sell your home and move into a new custom home in Lakewood Ranch or East Sarasota, you can transfer the “Save Our Homes” (SOH) cap from your old home to the new one, which can maintain your low tax rates.
🏡 Portability can help keep your property taxes low, even when moving to a higher-value home.
How the Florida Homestead Exemption Helps Custom Home Buyers in Sarasota
If you’re considering a custom home build in Sarasota, Lakewood Ranch, or east of I-75, the Homestead Exemption can make your investment more affordable. Not only will you benefit from lower property taxes, but you’ll also have the peace of mind knowing your home is protected from rising tax rates and creditors.
At Homes By Strong, we understand the importance of managing long-term costs for new homeowners, and we help our clients understand how the Homestead Exemption can maximize their savings while designing their dream homes.
Ready to Build Your Custom Home and Claim the Homestead Exemption in Sarasota?
📞 Contact Homes By Strong today to schedule a consultation and learn how the Florida Homestead Exemption can benefit you in your custom home journey.
We’re here to help you build a home that’s not only beautiful and functional, but also a smart financial investment for years to come.
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