If you own a home in Key West, Florida, or plan to buy one, there’s a great way to save money on property taxes—the Homestead Tax Exemption. Many homeowners don’t realize how much they can save, but taking advantage of this benefit can cut thousands off your tax bill over time. Let’s break it down in simple terms so you can see how it works and how to apply!
What is the Homestead Tax Exemption?
The Florida Homestead Exemption is a property tax break for homeowners who make their house their primary residence. If you qualify, you can reduce your home's taxable value by up to $50,000, which means you’ll pay less in property taxes.
Here’s how it works:
✔ The first $25,000 of your home’s value is exempt from property taxes, including school taxes.
✔ An additional $25,000 exemption applies to homes valued over $50,000, though this part doesn’t apply to school taxes.
For example, if your home is worth $300,000, the taxable value could be reduced to $250,000—helping you save hundreds (or even thousands) on property taxes!
Who Qualifies for the Homestead Exemption in Key West?
To qualify for the Homestead Exemption in Monroe County, you must:
🏡 Own a home in Key West (or anywhere in Florida).
📆 Live in the home as your primary residence as of January 1st of the tax year.
📝 Apply for the exemption with the Monroe County Property Appraiser’s Office.
The best part? You only need to apply once! As long as the home remains your primary residence, the exemption automatically renews each year.
Why is the Homestead Exemption Important?
Besides saving you money, the Homestead Exemption also offers:
🔹 Protection from large tax increases – Thanks to Florida’s Save Our Homes Act, your home's assessed value can’t increase more than 3% per year, even if the market value goes up.
🔹 Lower long-term property taxes – Over time, this cap helps keep your Key West property taxes more affordable.
🔹 Extra protection for homeowners – In some cases, Florida law prevents forced home sales due to certain debts, giving you added financial security.
How to Apply for the Homestead Exemption in Key West
Applying is simple, free, and only takes a few minutes! Here’s how:
1️⃣ Check if you qualify – Your Key West home must be your primary residence before January 1st of the tax year.
2️⃣ Gather your documents – You’ll need:
Florida driver’s license (with your Key West address)
Florida vehicle registration
Florida voter ID (if you’re registered to vote)
Proof of residency (utility bill, bank statement, etc.)
3️⃣ Apply online or in person – Visit the Monroe County Property Appraiser’s Office or apply online through their website.
Submit before March 1st – The deadline to apply is March 1st each year.
Owning a home in Key West, FL comes with many perks—beautiful beaches, tropical weather, and a laid-back island lifestyle. But why pay more in property taxes than you have to? The Homestead Exemption is one of the easiest ways to save money and keep your Florida Keys homeownership costs low.
If you’re thinking about buying a home in Key West, make sure to factor in the Homestead Exemption—it’s a small step that can lead to big savings over time!
Contact us if you have any questions!
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