PROPERTY TAXES & HOMESTEAD EXEMPTION, IN FLORIDA

When you’re building a custom home in Florida, you’re probably focused on design, materials, and timelines — but don’t overlook property taxes. Florida has some of the most homeowner-friendly tax rules in the country, especially when it comes to the Homestead Exemption and the Save Our Homes cap. Understanding how these work can save you thousands every year and protect your future tax bills as your home’s value rises.

HOW PROPERTY TAXES WORK IN FLORIDA

Florida property taxes are based on the assessed value of your home (set by the county property appraiser), multiplied by the local millage rate (the tax rate per $1,000 of assessed value).

• If your new home is assessed at $1,000,000 and your millage rate is 15, your taxes would be about $15,000 before exemptions.  That’s where the Homestead Exemption comes in.

WHAT IS THE HOMESTEAD EXEMPTION

If you make your Florida home your primary residence, you can claim a Homestead Exemption that reduces your taxable value by up to $50,000.

• First $25,000 applies to all property taxes.
• Second $25,000 applies to values between $50,000–$75,000 (but not school taxes).

For a $1,000,000 home, this exemption alone saves you roughly $750–$1,000 per year, depending on your county’s millage rates.

THE SAVE OUR HOMES CAP

The Homestead Exemption is nice, but the Save Our Homes cap is where Florida homeowners truly win.

Here’s how it works:

• Once you’ve homesteaded, your home’s assessed value (the number your taxes are based on) can only increase by 3% per year or the rate of inflation, whichever is lower.
• Even if your home’s market value skyrockets — say from $1M to $1.5M in five years — your taxable value might only increase by a fraction of that.

This cap creates a huge long-term savings advantage. It’s why people who bought in desirable areas 10 years ago are paying a fraction of what new neighbors pay, even in nearly identical homes.

PORTABILITY: TAKING YOUR SAVINGS WITH YOU

Another perk: if you sell your Florida homestead and buy another one, you can often transfer (or “port”) your Save Our Homes benefit to the new property.

• You can move up to $500,000 in savings from one homesteaded property to another.
• This is especially useful if you’re upgrading to a larger custom home but don’t want to lose your tax advantage.

DEADLINE & REQUIREMENTS

To qualify for the Homestead Exemption, you must:

• Own and occupy the home as your primary residence by January 1st of the tax year.
• File your Homestead application with your county property appraiser’s office by March 1st.

If you miss the deadline, you lose the benefit for that year.

WHY THIS MATTERS FOR CUSTOM HOMES

For many of our clients building in Central Florida, property taxes are a big consideration alongside financing and long-term costs. By planning ahead:

• You’ll know what to expect in year one.
• You’ll protect yourself against future market spikes.
• You can structure your build and move-in timeline to ensure you don’t miss the homestead deadline.

FINAL THOUGHTS

Florida’s Homestead Exemption and Save Our Homes cap are powerful tools that can keep your property taxes manageable, even in luxury homes worth several million dollars.

At Deep Roots Construction, we guide clients through more than just the build itself. From financing to finishes to long-term ownership costs, we believe education is key to making smart decisions. If you’re considering a custom home in Orlando, Winter Park, Lake Nona, Windermere, or anywhere in Central Florida, we’ll help you understand how property taxes fit into the bigger picture.