The Florida Homestead Protection

This is a legal provision that protects a primary residence from forced sale by creditors. Key points include:

• It shields the home from most creditors, with some exceptions like property taxes and mortgages. Medicaid cannot file a claim against the homestead.

• There's no dollar limit on the protection for the physical home itself.

• It applies to up to 160 acres of contiguous land in rural areas, or up to half an acre in municipalities.

• It also places restrictions on how homeowners can sell or transfer their property.

The Florida Homestead Exemption

This is a property tax benefit for Florida residents. Main features:

• It reduces the taxable value of a primary residence by up to $50,000.

• The first $25,000 applies to all property taxes, including school district taxes.

• The additional $25,000 applies to non-school taxes and only to assessed values between $50,000 and $75,000.

• Homeowners must apply for this exemption and meet certain residency requirements.

In essence, homestead protection safeguards your home from creditors, while the homestead exemption reduces your property tax burden.

The Save Our Homes (SOH) cap is another important feature of Florida's property tax system, often discussed alongside the homestead exemption. Here are the key points about the Save 

Our Homes cap:

1. Purpose: It limits the annual increase in assessed value of homesteaded properties for tax purposes.

2. Cap amount: The assessed value cannot increase more than 3% or the percentage change in 

3. the Consumer Price Index (CPI), whichever is lower, regardless of the actual market value increase.

4. Eligibility: It applies to properties that qualify for and receive the homestead exemption.

5. When it starts: The cap begins the year after you receive the homestead exemption.

6. Portability: Since 2008, homeowners can transfer their SOH benefit when moving to a new 

7. Florida home, up to $500,000.

8. Market value vs. assessed value: While the market value of a home may increase significantly, the assessed value for tax purposes is limited by this cap.

9. Reset: If the property changes ownership or loses its homestead status, the assessed value typically resets to market value.

The Save Our Homes cap works in conjunction with the homestead exemption to provide significant property tax benefits to Florida homeowners, especially in areas where property values are rapidly increasing.