Are you leaving money on the table with your property taxes? If you own or are buying a primary residence in Orlando, Florida’s homestead exemption can lower your tax bill and protect your home’s assessed value over time. It can feel confusing the first time you file, especially with deadlines and forms. This guide breaks it down in plain language so you know who qualifies, how to apply in Orange County, and how to estimate your savings. Let’s dive in.

What the homestead exemption does

Florida’s homestead exemption reduces the taxable assessed value of your primary residence for ad valorem property taxes. You can receive up to $50,000 in exemptions:

• The first $25,000 applies to all taxing authorities (including school district taxes).
• The second $25,000 applies only to the portion of assessed value between $50,000 and $75,000 and applies to non‑school taxes only.

This reduction lowers your property tax bill and can add up to meaningful savings each year.

Who qualifies in Orlando

To qualify in Orange County, you must meet these basics as of January 1 of the tax year:

• The property is your permanent Florida residence (primary residence).
• You hold a qualifying ownership interest (for example, fee simple title or a qualifying trust interest).
• You can show Florida residency at the property address.

Special notes:

• Co-owners can each claim the exemption only if the property is each person’s primary residence.
• Certain trusts qualify when the resident is the beneficial owner and occupies the home.
• Mobile homes may qualify when properly titled and used as a permanent residence.
• You cannot claim homestead on more than one property at a time.

Save Our Homes: why your assessed value matters

Florida’s Save Our Homes (SOH) cap limits how much your assessed value can rise each year on a homesteaded property. Annual increases are capped at 3% or the change in the CPI, whichever is lower. Over time, this cap often keeps your assessed value below market value, which helps keep taxes more predictable as prices rise.

Portability: transfer your SOH benefit

If you move to a new Florida homestead, you can transfer your accumulated SOH benefit to the new home (this is called portability). Key points:

• Portability transfers the dollar amount of your assessed‑value difference from your prior homestead to your new one.
• The portability benefit can be up to $500,000 (statutory cap).
• You must be establishing a new Florida homestead. Portability does not transfer to nonresidents and does not transfer to buyers of your former home.
• You typically file for portability when you apply for homestead on the new property.

How to apply in Orange County

Filing is handled by the Orange County Property Appraiser. Apply as soon as you establish residency. Do not wait until the deadline if you can help it.

Deadline to file

• File by March 1 for the tax year. You must be living in the home as your permanent residence on January 1 of that year.
• If you miss March 1, contact the Property Appraiser promptly. Limited late filing relief may be available.

Forms you may need

• DR‑501: Application for Homestead and Related Property Tax Exemptions.
• DR‑501T: Application to Transfer Homestead Assessment Difference (portability).

What to bring

Documentation varies, but you will typically need:

• Proof of ownership (recorded deed or closing statement).
• Florida driver’s license or Florida ID card showing the property address.
• Additional residency proof such as Florida voter registration, vehicle registration, utility bills, or a Declaration of Domicile.
• Social Security numbers may be requested to verify identity.

Filing tips for a smooth process

• File as soon as you move in and update your Florida ID to your new property address.
• If you are moving from another Florida homestead, bring your prior property’s assessed values or a recent tax bill to support DR‑501T portability.
• Keep copies of closing documents and residency records in case the office requests more information.

How to estimate your tax savings

Property taxes are based on millage rates. One mill equals $1 per $1,000 of taxable assessed value. A basic formula:

• Total tax = (taxable assessed value ÷ 1,000) × total millage rate.
• Homestead savings = (exemption amount ÷ 1,000) × applicable millage rate(s).

Illustrative example (for concept only; use current Orange County rates for actual numbers):

• Assessed value: $200,000
• Assume total combined millage: 20 mills (7 mills school district, 13 mills non‑school)
• Without homestead: (200,000 ÷ 1,000) × 20 = $4,000
• With homestead:
  • First $25,000 applies to school and non‑school
  • Second $25,000 applies to non‑school only
  • School taxes: (200,000 − 25,000) ÷ 1,000 × 7 = $1,225
  • Non‑school taxes: (200,000 − 25,000 − 25,000) ÷ 1,000 × 13 = $1,950
  • Total with homestead = $3,175
  • Estimated savings = $825

Note: Millage rates change each year and vary by taxing authority. For a precise estimate, use the Orange County Property Appraiser’s current-year figures or tax estimator for your parcel.

Common scenarios for Orlando buyers and sellers

• You are buying your first Florida home in Orlando: If you occupy it as your primary residence on or before January 1, apply by March 1 to receive the exemption for that year.
• You are moving within Orange County: File DR‑501 and DR‑501T to transfer your SOH benefit (subject to the cap) to your new homestead.
• You are relocating from another Florida county: Bring your prior county’s assessed value information and file portability with your new homestead application in Orange County.
• You are selling a homesteaded home: Your SOH benefit stays with you. A buyer will not inherit your capped assessment unless they have their own portability from a prior Florida homestead.

Additional exemptions to explore

Depending on eligibility, you may qualify for more relief:

• Certain disabled veterans may receive partial or full ad valorem exemptions based on VA documentation.
• Seniors 65+ may qualify for local option exemptions when income limits are met.
• Widows, widowers, and persons with permanent disabilities may qualify for additional exemptions.

Program availability and income limits can vary by county or municipality. Check current Orange County guidance for details and application steps.

Avoid these common mistakes

• Waiting until February to start gathering documents. Begin as soon as you move in.
• Not updating your Florida driver’s license and voter registration to your new address.
• Assuming portability is automatic. You must apply and provide prior homestead information.
• Claiming homestead on more than one property. The state cross-checks records, and improper claims can lead to back taxes, penalties, and interest.

Your next steps

• Confirm that the home is your permanent residence as of January 1.
• Gather your deed, Florida ID with the property address, and residency proofs.
• File DR‑501 with the Orange County Property Appraiser by March 1.
• If you owned a prior Florida homestead, file DR‑501T at the same time and bring your prior assessed values or tax bill.
• Ask about any additional exemptions you may qualify for.

If you would like help timing your move, understanding how portability could affect your next purchase, or connecting with local resources, reach out. You deserve clear answers and a smooth plan from contract to closing. Connect with Tammi B. Pipkin, LLC to get started.

FAQs

What is the Florida homestead exemption for primary residences?

• It reduces the taxable assessed value of your primary Florida residence by up to $50,000, which lowers your annual property taxes.

When do I need to live in the home to qualify in Orlando?

• You must make the property your permanent residence by January 1 of the tax year and file your application by March 1.

What documents do I need for Orange County?

• Expect to provide a recorded deed, Florida driver’s license or Florida ID with the property address, plus voter or vehicle registration and utility bills as residency proof.

How does the Save Our Homes cap limit tax increases?

• For homesteaded property, assessed value can rise only by 3% or the CPI change each year, whichever is lower.

What is portability when moving within Florida?

• Portability transfers your Save Our Homes benefit to a new Florida homestead (up to a $500,000 cap) when you apply with the new county.

What if I miss the March 1 homestead filing deadline?

• Contact the Orange County Property Appraiser promptly; limited late filing options may exist, and acting quickly can help.

Can non‑U.S. citizens qualify for homestead?

• Yes, if they meet the ownership and Florida residency requirements and occupy the property as a permanent residence.

Does the exemption lower my monthly mortgage payment?

• It lowers your property tax bill, which can reduce your escrow portion if your lender collects taxes with your mortgage.

What happens if I rent out my homesteaded home?

• You cannot claim homestead if it is not your primary residence; notify the Property Appraiser if your use changes to avoid penalties.