Tax Perks Every Florida Homeowner Should Know

Money Matters for Homeowners:

The Quiet Deductions, Credits, and Savings That Come with Owning a Home in the Sunshine State

Tax Perks Every Florida Homeowner Should Know

Florida might be known for sunshine and sandy beaches—but it’s also one of the most tax-friendly states to own a home in. If you’re a homeowner here, there are several financial benefits that can quietly lower your tax bill or increase your refund each year.

Some are federal perks, some are state-based, and others depend on how you use your home.

As always—consult your tax advisor for your specific situation. But here are a few of the most common homeowner perks worth knowing about:

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Florida-Specific Perks

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1. Homestead Exemption

If you live in your Florida home as your primary residence, you likely qualify for a Homestead Exemption of up to $50,000 off your property’s assessed value for tax purposes.

This can save you hundreds to over a thousand dollars each year in property taxes.

Bonus: It also limits how much your home’s assessed value can increase year-over-year (a 3% cap), which helps protect you from big tax hikes.

Make sure your exemption is applied—it’s not automatic if you’ve moved or recently purchased.

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2. No State Income Tax

Florida has no state income tax, which means any profit from a home sale (if you qualify for the federal capital gains exclusion) won’t be taxed at the state level either.

This makes Florida one of the best places to benefit from home value appreciation—especially if you’ve owned and lived in your home for at least 2 of the last 5 years.

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3. Property Tax Portability

Selling one home and buying another in Florida? You may be able to transfer your homestead tax savings (up to $500,000 of assessed value) to your new primary residence.

This is called Save Our Homes portability, and it’s a huge win if you’ve owned your previous home for a long time and are worried about higher taxes on your next one.

✅ Tip: There’s a time limit to apply after you move—don’t miss it.

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Federal Tax Breaks That Still Apply

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4. Mortgage Interest Deduction

If you itemize your taxes, you can deduct mortgage interest paid on loans up to $750,000 (or up to $1M if you purchased before 2018). This applies to your primary residence and one second home.

This deduction can add up fast—especially in the early years of your loan when interest is highest.

5. They hedge their bets—with wide value ranges.

Many estimates come with a price range—often $40K to $80K wide.
That means the site is saying: We don’t really know either.

The smaller the range, the more data they have. The wider the range, the less confidence you should have in the number.

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5. Property Tax Deduction

You can also deduct up to $10,000 in combined property and state/local income taxes (even though Florida doesn’t have income tax, this is helpful if you own other property elsewhere).

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6. Energy Efficiency Credits

Making energy-efficient upgrades? You may qualify for federal tax credits for things like:

• Solar panels
  
• Energy Star windows/doors
  
• New insulation
  
• Efficient HVAC systems
  
• Heat pumps or solar water heaters
  

Florida’s climate makes solar and energy savings especially worthwhile.

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7. Home Office Deduction

If you’re self-employed and use part of your home exclusively and regularly as your primary place of business, you may qualify for a home office deduction on your federal taxes.

(Unfortunately, W-2 employees can no longer claim this—even if working from home.)

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8. Short-Term Rental Income Exclusion

Rent your home for 14 days or less per year (say, during spring training or a local event)? That income is completely tax-free under the federal rule—no matter how much you earn from it.

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Want to See What Your Home Might Be Worth Right Now?

I offer a free, automated home value report for my readers. It’s quick, easy, and a great starting point—delivered straight to your inbox.
→ HOME VALUE ESTIMATE REPORT

Then, if you’re ready for something more precise, I’ll happily put together a custom market analysis—based on your actual home, your location, and what buyers are really paying right now in your area. Just send me a quick text to 941-283-7651 or email me at april@planmyfloridamove.com and I’ll get started on it!

The Bottom Line….

Florida offers more than great weather—it offers smart tax advantages too. From exemptions and portability to credits and deductions, there are several ways homeownership can help you financially each year.

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📩 Have questions or need a referral to a trusted CPA who understands Florida rules? I’m happy to connect you—or help you understand which benefits apply to your current situation.
→ april@planmyfloridamove.com

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