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CSA TRAVEL INFORMATION GUIDE
Florida Homestead Exemptions
Florida provides a number of different property tax exemptions to its permanent full-time residents.
The original Homestead Act came into force in 1992. In 1995, Florida implemented the Save Our
Homes (SOH) constitutional amendment. In January 2008, a constitutional amendment – entitled
amendment one – was ratified by Florida voters.
Among these various incentives is a homestead exemption of $25,000 USD which has now been
doubled with amendment one ($50,000 USD). It is restricted to every person who has legal or
equitable title to real property in the State of Florida and who resides on the property on January 1
and in good faith makes it his/her permanent home.
Florida also provides a Homestead Tax Deferral to its permanent residents. An individual who is
entitled to claim a homestead tax exemption may elect to defer payment of part of his/her combined
total taxes under Homestead Tax Deferral.
Florida’s SOH created a 3% annual homestead property assessment limitation on homestead proper-
ties in Florida. This limitation does not apply to any new construction, any previously non-assessed
improvements, or to the new owner of a new or existing home the first year they are added to the
tax roll. It provided no cap on assessment increases for commercial properties, income properties, or
vacation and second homes. Amendment one continues the 3% cap on homesteaded properties as
well as providing a first-ever 10% cap on all other properties that were previously excluded such as
business, rental properties and vacation second homes.
A further feature of amendment one is portability thereby allowing a homesteader to take all or part
of their homestead exemption with them if they move to a new home.
To repeat, these exemptions are provided solely to permanent full-time residents of Florida.
While these various caps and benefits sound exciting, it is important to remember that the local
municipality or county ultimately takes the assessed value of properties and the applies a millage
rate to determine the bottom-line property tax bill. In many cases, these municipal and county
governments have shown little restraint in spending. Homesteaders, being limited to a capped
assessment notice have experienced marginal bottom-line tax increases while businesses and
vacation second home owners (who use municipal services only one-half of the year) end up paying
an even more disproportionate amount of municipal services.
Example of two individuals living in the same condominium complex – identical units – after
15 consecutive years of the original SOH and homestead act benefits.
Unit “A” (homesteaded by full-time Floridian) – final tax bill ~$2,800.00
Unit “B” (not homesteaded by seasonal snowbird) – final tax bill ~$13,000.00
Texas Homestead Exemptions
Texas, similar to Florida, provides homestead property tax exemptions to its permanent full-time
residents.
Texas defines a homestead as “a separate structure, condominium or a mobile home located on
owned or leased land, as long as the individual living in the home owns it.”A homestead can include
up to 20 acres, if the land is used as a yard or for another purpose related to the residential use of the
homestead.
Texas offers a number of different exemptions to its permanent full-time residents. These include
exemptions from school and county taxes, as well as exemptions based on age and disability.