Florida Homestead Property Tax Simplified for Real Estate Exam Prep

Studying for the Florida Real Estate Exam? Understanding the Florida Homestead Exemption isn’t just crucial for the test; it could also save you money one day. Here’s a streamlined overview of what you need to know.

Homestead Exemption Basics

Florida offers tax relief by lowering the assessed value of your primary residence:

• First $25,000 applies to all taxes, including schools.
• Second $25,000 applies only to non-school taxes on assessed values between $50,000–$75,000.

Pro Tip: Homes valued above $75,000 qualify for the full $50,000 exemption, while lower-valued homes may get less than $50,000.

Save Our Homes Cap

This law limits annual assessed value increases for homesteaded properties, ensuring smaller tax hikes over time.

• Increase is capped at 3% or the inflation rate (CPI), whichever is lower.

Example: If the market raises your home’s value by 5% but CPI is 2.5%, your assessed value only climbs 2.5%.

Portability of Tax Savings

You can transfer up to $500,000 of accumulated tax savings when moving within Florida.

• Eligibility: Purchase and declare your new property as a homestead within three years.

Example: If your old home was assessed $200,000 below market value, you can reduce your new taxable value by the same amount.

Exam-Related Tips

Math accounts for just 10% of the Florida Real Estate Exam, but understanding these tax concepts can help you breeze through relevant questions. Be sure to know how exemptions, caps, and portability interact—as well as their real-world implications.

Pass the Exam With Confidence

Tax calculations are only a small part of the Florida Real Estate Exam. To ace the whole test and save time studying, turn to PassFirstTry.com. This efficient exam prep program simplifies the material, so you can focus on what matters most and pass the exam on your first try.

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