Miami-Dade and Broward County have various exemptions available that could provide tax relief to property owners. The Homestead Exemption applies to the largest group of property owners. However, many exemptions exist that could be applicable to your situation or property type.
Every person who holds title to real property in the state of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible to receive a Homestead Exemption of up to $50,000 and the Save Our Homes benefit.
The Save Our Homes Cap is the most significant benefit of Homestead Exemption. The benefit provides homeowners protection by limiting the maximum increase of the assessed value to 3% per year (thereby limiting the increase in taxable value) despite potentially more significant market value increases.
After a title change (i.e. when a sale occurs), the Homestead Exemption is removed from the property (it remains active until the following tax year). If a gap between the market value and assessed value existed because of the previous owners’ exemption, the assessed value will increase to match market value. This will cause the taxable value to increase, and therefore, the property taxes to rise.
APPLYING FOR HOMESTEAD EXEMPTION IN MIAMI-DADE AND BROWARD COUNTY
If, as a new owner, you want to receive a Homestead Exemption in Miami-Dade or Broward County, you must apply before March 1st of the following tax year. The Save Our Homes cap will then be applied to the assessed value in the years following the base year (the base year being the first year after the previous homeowners’ exemption was lifted). Applying can be done in person or online through the county’s website.
TRANSFERRING HOMESTEAD & PORTABILITY
Homeowners can transfer the difference between the assessed and market values from their previous homesteaded property to another homesteaded property (up to $500,000). In order to transfer, the homeowner must apply for Homestead Exemption, then file the DR-501T form to perform the transfer. Transfer of Homestead Exemption must be done within two years of your last Homestead Exemption.
APPEALING HOMESTEADED PROPERTIES
Properties with a large gap between market value and assessed value due to the Save Our Homes cap generally cannot receive any tax relief through a tax appeal process. In order for an appeal to reduce the taxable value of a homesteaded property, the market value will have to be reduced below the assessed value. In most cases, this is not probable. If your property has a minimal gap or no gap at all (this is most common with properties that have been recently purchased) between it’s market and assessed value, do not hesitate to reach out to us, and we will conduct a free analysis. Homeowners can look up their market and assessed values of their property at the property search portion of the Miami-Dade and Broward County websites.
Non-Homestead Cap limits the increases in assessed value to ten percent. Any property that is not homesteaded qualifies for the Non-Homestead Cap, regardless of property type. No application is required to receive the benefit. Some examples of non-homestead properties are second homes, residential and commercial rental property, owner-occupied commercial property, and vacant land. Changes in ownership and use of the property resets the Non-Homestead Cap base year. Due to the fact that the cap does not apply to all portions of the tax bill (i.e.school district taxes), a non-homesteaded property can potentially save on their taxes through an appeal, regardless of the gap between the market and assessed value.
There are many other exemptions you may qualify for. Check your county's website for eligibility. Additional exemptions include:
Disabled First Responder
Senior Citizen Exemption
Tangible Personal Property Exemption
Widow or Widower Exemption
Granny Flat Assessment Reduction
Depending on property type, the following classifications can also provide tax relief:
Environmentally Endangered Lands