Can You Claim a Homestead Exemption on a Rental Property in Florida?

In Florida, you can homestead only one property. If you move out and rent the home, you can’t continue to claim a homestead exemption. According to Florida Statutes 196.061, renting the property constitutes abandonment of the homestead.

However, if the homesteaded property has been turned into a rental after January 1st of any year, the owner can keep the exemption for that particular year, unless the property has been rented for more than 30 days per year for two years in a row.

Exemptions for Active Military Personnel with Homestead 

If members of the Military on active duty have been issued PCS orders, they can retain the homestead exemption even if they rent the property. To continue to qualify for the exemptions, the following conditions must be met.

  • They have to be on active duty as of January 1st for the year they want to claim an exemption.
  • Show the most recent PCS orders.
  • Have the intention of returning to Florida.
  • Keep Florida as legal residency, for example, maintain Florida driver’s license.
  • File for homestead exemption every year by the deadline.
  • Keep updated mailing address with the Property Appraiser office.

Military personnel deployed outside the US may qualify for additional exemptions. 

Partial Homestead: Duplexes, Airbnb Rooms, Granny Flats

What happens to the Homestead exemption if the owner lives in one side of the duplex, triplex, fourplex, or rents a room on Airbnb?

If you live in one part of a duplex, triplex, or fourplex, you can have homestead exemption only on the part you occupy.  The same applies to renting rooms through Airbnb. You have to prorate your exemption.

Granny Flats

If a property owner builds a granny flat, that’s going to be occupied by parents or grandparents older than 62 years, they can deduct the assessed value of the added addition or 20% of the total assessed value.

Buying a Property with Homestead Exemption

If you are buying a property that has a homestead exemption, you have to be aware that the assessed value may change and the property tax may increase substantially. Almost every property appraiser website has a Tax Estimator Tool which you can use to determine the new taxes. Here is the one in Hillsborough County

Even if you will be applying for homestead exemption, when you buy a property, the assessed value will adjust. The Save Our Homes cap increase doesn’t come to play until the next year. If you are buying and selling a property in Florida, you may be eligible to transfer all or part of the capped value.

Here is an example of the portability benefit:

If the current home Just/Market Value if $300,000 and the Assessed Value is $150,000, the portability benefit is the difference between both or $150,000 in this case.

If the property owners move to another homestead, let’s say they buy a property for $400,000, they can deduct the portability benefit of $150,000 plus the $50,000 for the homestead exemption, making the new assessed value $200,000.

What Are the Benefits of Homestead Property?

Florida allows up to $50,000 to be deducted from the assessed value of a homesteaded property. It also caps the annual increase of the assessed value at 3% or at the reported Consumer Price Index, whichever is less.  

Additional Exemptions:

  • $500 Widow/Widower
  • $500 Personal Disability
  • $500 Blindness
  • Total Disability
  • $5000 Veteran Disability
  • 100% Exemption for Surviving Spouse of a Military Veteran or First Responder
  • Veteran over 65 years old
  • Deployed Active Military Duty
  • Low Income Senior Citizen over 65 years old

Deadline for Filing Homestead Application 2022

The deadline for filing for homestead exemption is March 1st. You can file late until the Notice of Proposed Property Taxes (TRIM) is mailed, which is normally done in August.No applications are accepted after that.

Do You Have to Apply for Homestead Exemption Every Year?

The initial application needs to be made no later than March 1st but the property owners don’t need to reapply every year. As long as they still qualify for the exemption, they get it automatically. This doesn’t apply for the additional exemptions, some require applications to be filed every year.

Can You File Online?

Yes, most Property Appraisers websites in Florida have an online homestead exemption application. You can find links to their applications in the Resources section below.

For certain types of properties, the application can’t be filed online: properties held in trust, multifamily, mobile homes, or commercial properties.

Resources:

Save Our Homes Amendment

Florida Statutes 193.155 Homestead assessments

Hillsborough County Homestead Exemption Online Application 

Pinellas County Homestead Exemption Online Application

Miami-Dade County Homestead Exemption Online Application

Orange County Homestead Exemption Online Application

Jacksonville/Duval County Homestead Online Application

About the author

Jana Christo is a business owner, real estate investor, and property manager. She has 16 years of experience in most areas of real estate.
During the last recession, she was also the managing partner for a company that bought and rehabbed properties from the court foreclosure auctions. Today, she manages her own portfolio of rental properties and shares her experience on Rentce.com.