How Florida's Homestead Exemption Affects Real Estate Valuation

Florida's homestead exemption is one of the most valuable tax benefits available to property owners — but it is frequently misunderstood, especially when it comes to the relationship between assessed value and market value.

What Is the Homestead Exemption?

Florida law provides a homestead exemption that reduces the assessed value of a primary residence by up to $50,000 for property tax purposes. The first $25,000 applies to all property taxes; the second $25,000 applies to non-school taxes only.

What Is the Save Our Homes Cap?

Under Florida's Save Our Homes amendment, the assessed value of a homesteaded property cannot increase by more than 3% per year regardless of how much the market value has increased. This means long-term Florida homeowners often have assessed values significantly below their actual market value.

Assessed Value vs. Market Value

The county's assessed value — especially for properties that have been homesteaded for many years — may be dramatically lower than the property's actual market value. When a property sells, the Save Our Homes cap resets and the new owner is assessed at full market value.

A certified appraisal establishes market value — what a willing buyer would pay a willing seller in an arm's length transaction. Do not assume your assessed value reflects your property's true worth. Contact Mantis Valuation Advisors for an accurate independent opinion of value.