Taxes

How does homestead exemption work in Florida?

Answered by Barrett Henry, REALTOR®

Florida's homestead exemption reduces your home's assessed value by up to $50,000 for tax purposes. On a $400,000 home, you'd be taxed on $350,000 instead. It also caps annual assessment increases at 3%, which saves you more every year. You must apply the year you move in — it's not automatic. File with the Hillsborough County Property Appraiser by March 1st. It's free and takes 10 minutes online.

Barrett Henry

Broker Associate, REALTOR® | REMAX Collective

With over 23 years of real estate experience, Barrett helps buyers and sellers across Valrico and the Tampa Bay area. Straight talk. Smart strategy.

(813) 733-7907 nowtb.com

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Related Questions

What are property taxes like in Valrico?

Property taxes run roughly 1.5% to 2% of your home's assessed value, depending on whether your neighborhood has a CDD. For a $400,000 home with homestead exemption, you're looking at $5,500 to $7,500 per year. Homestead exemption knocks $50,000 off your assessed value and caps annual increases at 3%. File for it the year you move in — it saves thousands over time.

What is a CDD and how does it affect my taxes?

A CDD (Community Development District) is a special tax district that some neighborhoods have. It pays for infrastructure the developer built — roads, water lines, street lights, parks, etc. CDD fees typically add $1,500-$4,000 per year on top of your regular property taxes. Not all Valrico neighborhoods have CDDs. Older, established communities usually don't. Always ask about CDD before buying — it's on the tax bill but sellers don't always mention it.

Is there a city tax in Valrico?

No. Valrico is an unincorporated area of Hillsborough County, which means there's no city government and no city tax. You pay county property taxes and any applicable CDD or HOA fees, but that's it. This is one of the financial advantages of living in Valrico versus an incorporated city like Tampa or Plant City where you'd pay an additional city millage rate.

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