GAINESVILLE, Fla –
Florida voters approved an annual inflation adjustment to
the value of current and future Homestead Exemptions in the November 5,
2024, general election.
This is known as Amendment 5, which takes effect on January 1, 2025,
beginning with the 2025 tax year assessment. This applies to levies other than
the school district levies and only to homesteaded properties.
Currently, when someone owns the property and makes it his or her permanent residence or the permanent
residence of his or her dependent, the property may be eligible for a Homestead Exemption up to $50,000.
The first $25,000 applies to all taxing authorities, including school district levies. The second $25,000 starts
to apply to properties with an assessed value between $50,000 and $75,000 and only to non-school taxes.
Amendment 5 would only affect the second $25,000 of the Homestead Exemption. The adjusted value
increase amount will be calculated and provided by the Florida Department of Revenue annually based on the
Consumer Price Index (CPI) when the inflation adjustment is positive and will accumulate every year. This has
no relation to the Save Our Homes (SOH) Cap of 3% or the property’s deferred value.
“For example, if a property’s market value is $275,000 and its assessed value is $130,000, it would qualify for
the full $50,000 Homestead Exemption due to the assessed value being more than $75,000,” Property
Appraiser Ayesha Solomon said. “If the CPI for the tax year 2025 were to be 5.1%, it must first be converted
using the formula 1+ (CPI/100). This results in a growth factor of 1.051 that is multiplied by the second
$25,000, which in this case would equal $26,275 for a new total Homestead Exemption value of $51,275.”
“Since these adjustments are cumulative, if the CPI is 4.1% for the following 2026 tax year, this would be
converted to the growth factor 1.041 and multiplied by the previously inflated $26,275 established in 2025,
equating to $27,352. In this case, the new total exemption amount would equal $52,352 for the 2026 tax year,
resulting in an ongoing taxable value reduction,” Solomon said.
Property owners with a Homestead Exemption are not required to take any action. These adjustments will
happen automatically. The updates will be available for homeowners to review on the Notice of Proposed Tax
forms, also known as Truth in Millage (TRIM) notices, mailed by this office in mid-August each year.
About the Alachua County Property Appraiser’s Office
The Alachua County Property Appraiser’s Office ensures that all taxable property in the county is assessed equitably and at its fair market value in accordance with Florida statutes. The Property Appraiser’s Office has two locations: 515 N. Main Street in Gainesville and 15010 NW 142nd Terrace in Alachua. For more information visit https://www.acpafl.org