People have been relocating to Florida enjoy the lifestyle and to save on their taxes for years. However, the recent changes in the federal tax code, which include new limits on deductions of state and local taxes paid, have made the tax benefits of being a Floridian even greater.
Here are some of the top financial advantages of changing your primary residence to Florida:
Florida Offers Property Tax Benefits for Primary Residences. There are two property tax breaks if you buy a home in Florida and declare that it's your primary "homestead" residence. First, you'll receive an exemption for the first $50,000 of your home's value for property tax purposes, except for school district taxes which only receive a $25,000 exemption. In Addition, the Florida "Save Our Homes" cap on annual assessments. The cap is set at 3 percent or the change in the consumer price index (CPI), whichever is less. This means that the assessed value of your homestead for property tax purposes can't increase on annual basis by more than the change in the CPI or 3 percent if the change in the CPI is more than 3 percent.
How Hard Is It to Become a Florida Resident? It is not difficult or complicated to become a Florida resident. The most difficult part is cutting ties to your former state of residence to convince that state's revenue department that you're no longer living there and therefore can't be taxed there.
This is particularly important for someone who continues to maintain a home or a business in another state while residing in Florida.
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