Homestead Exemption Hacks: How Timing Your Home Purchase Can Slash Property Taxes

By Andrew Duncan

Andrew Duncan is the Founder, CEO and Co-Owner of Tampa’s Best Real Estate Agent Team, The Duncan Duo, the Host of The Duncan Duo Real Estate Show Sundays at 10am on 970AM WFLA. As the team’s Founder, CEO & Co-Owner, Andrew’s focus is on the growth of the company, marketing and promotion initiatives as well as motivating and coaching the team’s agents and leadership.

Are you contemplating the purchase of a home in the coming year? Well, if you can expedite your plans and seal the deal before the year concludes, you might just unlock substantial tax savings. Let’s delve into the mechanics of the homestead exemption in Florida and how it could significantly impact your financial outlook.

In Florida, the homestead exemption operates on a calendar-year basis. Here’s the gist of it: if you manage to finalize your home purchase by the end of the current year, you’ll secure this year’s assessments and values for your homestead exemption. The intriguing part? These values tend to rise annually.

To put it into perspective, closing on your new home in December as opposed to January of the following year can result in significantly lower property taxes. It’s a nuanced aspect of home buying that many overlook, but the potential savings are worth exploring. So, if you’re contemplating a home purchase, it’s crucial to run the numbers.

“Now is the time to leverage the homestead exemption.”

Consult with your agent and take a proactive approach. Visit the property appraiser offices of Hillsborough County, Pinellas County, Pasco County, and scrutinize the variations in assessments and values. Why? Because experts are predicting a 5% to 7% rise in housing prices in Tampa Bay. This means that your property taxes could see a corresponding increase—5 %to 7% higher, to be exact. And this upward trend is likely to persist year after year due to the workings of the cap system.

In essence, the key takeaway is this: if you’re mulling over the idea of homeownership, now is the time to leverage the homestead exemption. Seize the opportunity to minimize your property taxes by doing everything in your power to close on your dream home by the end of this year.

The good news? We have a range of homes available and work closely with builders to ensure you find the perfect fit. Don’t let this chance slip away. Act now to secure your homestead exemption and enjoy the financial benefits it brings. For more details and available properties, visit our website. If you have any questions, reach out by phone or email.