If you recently bought a home, this exemption could lower your assessed value and cap annual increases.

Did you know you can save extra money after buying a home in Palm Beach County? Applying for a homestead exemption is one step you don’t want to overlook. This significantly reduces your property taxes by lowering your assessed value and limiting how much that value can increase each year, making it one of the best financial protections available to Florida homeowners, but it’s not automatic. 

Here’s what you need to know to take full advantage of it.

The Florida homestead exemption. It is a legal benefit that reduces the taxable value of your primary residence. It can lower your assessed value by up to $50,000, and it caps how much your property’s value can increase each year, typically 3% or the CPI, whichever is lower.

This means two major benefits: lower taxes now, and protection from dramatic tax hikes in the future.

Who is qualified. To qualify, the home must be your primary residence. That means your voter registration, driver’s license, and vehicle registration should all be tied to that address. As long as it’s your permanent home, and you occupy it as such, you’re likely eligible.

“The homestead exemption is a critical step in managing your long-term homeownership costs.”

The exemption only needs to be filed once, so after you’re approved, it stays in place until your status changes (for example, if you move or sell the home).

How and when to file. It’s a simple web application process, and if you purchased with our team, we’ll send you reminders and help you through it. You can apply directly through your county’s property appraiser website.

You’ll typically need:

• Your Florida driver's license or state ID

• Vehicle registration

• Voter registration

• A copy of your closing statement (HUD or ALTA)

If you purchased a home in 2025, you have until March 1, 2026 to file your homestead exemption. Florida taxes are paid in arrears, so this filing will apply to the 2026 tax bill. The sooner you file, the better, especially if you’re budgeting based on expected tax amounts.

The homestead exemption is a critical step in managing your long-term homeownership costs. Remember, the taxes you see online may not always reflect what you’ll pay. Talk to a local expert who can walk you through how taxes are calculated and what exemptions you may qualify for.

Have questions about filing or buying in Florida? I’m here to help. Call me at 561-843-4464 or email me at laurie@activeluxury.com. I’m here to help.