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It’s 2022 and still before the due date of March 1st. You owe it to yourself to make sure you are taking advantage of every property tax exemption possible. Over the years, you can save tens of thousands of dollars. I’ll start with the easiest exemption.
Homestead Exemption
Each year, January 1 through March 1, the Miami-Dade Property Appraiser’s office allows homeowners to file for Homestead Exemption. This valuable deduction is only for a homeowner’s primary residence and once you file, it automatically renews each year. The exemption provides a $25,000 in assessed value for all taxing authorities and another $25,000 to all tax authorities (except the School Board).
Homestead Exemption also provides an additional valuable benefit of capping the annual increase of an assessed value to 3 percent or the Consumer Price Index (CPI), whichever is lower. Over a few years, this can save a homeowner a ton of money. Just looking at 2021 where some property values increased by more than 20 percent, those Homestead Exempt properties will only see an increase in their property taxes of 1.7 percent (the 2021 CPI rate). And, just like bank interest, capping each year can have a compounding and impressive effect on your tax saving over the years.
So, for brand new homeowners or those who moved to Florida from other areas, it is critical that you file for Homestead Exemption to start your years of tax savings! You can file online at: miamidade.gov/PaPortal/AutoOnlineFile/ExemptionOnlineMainMenu.aspx
Other Exemptions
If you are already a Florida homeowner, you might have turned 65 during 2021. If so, don’t forget to take advantage of the Senior Citizen Exemption! Savings vary based on your personal situation, but they can be significant. Further, if you are 65+ and lived in the same home for more than 25 years, you would be eligible for a Long-Term Resident Senior Citizen Exemption.
If you are deployed military, have a disability, are a disabled first responder, are a widow/widower, you have some property tax exemptions you can file for as well.
The Miami-Dade Property Appraiser, Pedro Garcia, sat down with me on January 6 on “The MiamiHal Real Estate Show” at the Miami’s Community Newspaper Studios to explain all of this and more in detail. You can watch this show at: miamihal.com/the-miamihal-real-estate-show/2022/1/6/episode-47
Beyond Exemptions
There are even more savings for homeowners in Florida who want to upsize, downsize or just move within the State. Known as portability, property owners with Homestead Exemption and an accumulated SOH Cap can apply to transfer (or “Port”) the SOH Cap value (up to $500,000) to a new homestead property. This application is known as the “Transfer of Homestead Assessment Difference”, and the annual deadline to file for this benefit and any other property tax exemption is March 1st.
Portability allows you to bring the years of accumulated property tax savings along with you (at least a percentage thereof) and it is meant to provide Floridians the freedom to choose the best housing for their situation without losing the tax standing they have earned over the years of being in Florida.
The detailed explanation is longer than this article space allows, so I point you to this article on my website: miamihal.com/hals-blog/2009/10/13/property-tax-saving-mechanisms-for-floridians.html
The Miami-Dade Property Appraiser’s Office is run more like a business than a governmental office. It allows Pedro Garcia to promise true customer service. During my show, he promised any Miami-Dade County resident that his office will answer your questions via phone on that call or get you a response within one business day. The Miami-Dade Property Appraiser’s Office phone number is 305-375-4712 and the very helpful website is at miamidade.gov/pa/home.asp
One word of warning to heed. Garcia mentioned that the County is looking for people who are looking to defraud the State of due taxes. Penalties are stiff and his office has powerful automated tools to detect violators. “Some people make honest mistakes when initially filing or they fail to report a change that effects their eligibility,” said Pedro Garcia. “We’ll work with those people. But outright purposeful fraud will not be tolerated.”
When used right, the property tax exemptions are an incredible benefit to homeowners. Make sure you take advantage!
Real Estate Update
As of 1/7/22, there were only 64 properties for sale in Pinecrest, 27 homes pending sale and 4.2 months of inventory. This is still a Seller’s market, but not forever! If you’re ready to move, get the best local expertise, truthful guidance and realistic expectations. It’s easy to get started at miamihal.com/getstarted. I invite you to view past episodes of my The MiamiHal Real Estate Show at miamihal.com/the-miamihal-real-estate-show to hear from experts and get the latest real estate news.
Hal Feldman (MiamiHal) is a Realtor with RE/MAX Advance Realty. You can contact him with your story ideas or real estate questions at www.MiamiHal.com, Hal@MiamiHal.com or www.facebook.com/MiamiHal
