Read below to find out what it is and to see if you may qualify.
A Homestead Exemption is a unique benefit that some states offer as part of their tax law. Under the Homestead Exemption, the amount of property taxes that you have to pay on your home are substantially reduced, saving you money on your annual tax bill. And quite frankly, who wouldn’t like a little extra savings at tax time?
Over 45 states offer some sort of Homestead Exemption program, but rules about eligibility can vary from state to state. In Florida, specifically Orange County, rules about who can meet the requirements for a Homestead Exemption are quite generous, allowing many more residents to qualify than most other areas in the country.
To qualify for the Homestead Exemption in Orange County, Florida, the criteria is simple: you must own the property that is your permanent residence as of January 1st. It’s as simple as that. If approved, the Homestead Exemption will reduce the taxable value of your property by up to 50k, which could save you approximately $750 a year. You must also submit your application by March 1st. Orange County also partakes in the “Save Our Homes” benefit, which means the longer you have lived on your property, the more you will save.
Another important thing to mention here is Portability. This is when you’re moving from one homestead to another within the state of Florida and would like to reallocate the accumulated savings from the previous property to the new property.
In order to determine Portability, the assessed value of the home is subtracted from the market value of the home and the difference is reallocated to your new property under the homestead exemption portability process.
In order to qualify for Portability, certain conditions must be met. Your new homestead exemption must already be official and you must have had a previous homestead exemption on January 1st of any of the three previous years. If you are moving and you currently have the Homestead Exemption, then you must apply for the new Homestead Exemption and the Portability at the same time. You have 3 years to Port your tax savings from the time you sell your previous Homestead.
Applying for a Homestead Exemption doesn’t have to be a lot of work, especially in Orange County, where the process is simplified and streamlined for your convenience. Please check the Orange County, Florida official website for any additional information, rules and regulations.
