Short answer
The Florida homestead exemption reduces the taxable assessed value of your primary residence by up to $50,000 and activates the Save Our Homes 3% annual assessment cap. To qualify, the home must be your permanent Florida residence as of January 1. File with the Collier or Lee County Property Appraiser between January 1 and March 1.
How the Exemption Works
Florida homestead provides two tiers of exemption:
- $25,000 on all property taxes — applies to assessed value $0–$25,000
- Additional $25,000 on non-school taxes — applies to assessed value $50,000–$75,000
For most Naples homes well above $75,000 in assessed value, the practical exemption is the full $50,000 — meaning roughly $400–$800 per year in tax savings, depending on millage rates.
The Real Money: Save Our Homes Cap
The bigger benefit is the Save Our Homes (SOH) cap, which limits annual increases in assessed value to 3% or CPI, whichever is lower. In a rising market like Naples, this is the most valuable feature of homestead:
A home bought in 2015 for $500,000 and now worth $1.2M may have an assessed value capped near $700,000–$800,000 because of SOH. The owner pays property taxes on the capped value, not the full market value — saving thousands per year.
Portability — Move Your Savings
Florida lets you transfer up to $500,000 of your SOH assessment difference to a new homesteaded property anywhere in Florida. You have three tax years to establish a new homestead. Portability is one of the most under-used wealth-preservation tools in Florida real estate — it can save tens of thousands when downsizing or upsizing.
How to File in Collier County
- Establish Florida residency by January 1 (driver's license, voter registration, vehicle registration)
- Gather proof: Florida ID, vehicle registration, voter registration, utility bills
- File with the Collier County Property Appraiser by March 1
- Filing is free — most owners file online
- Once approved, the exemption renews automatically each year
Lee County buyers (Fort Myers, Cape Coral, Bonita Springs, Sanibel) file with the Lee County Property Appraiser on the same January 1 / March 1 timeline.
What Disqualifies You
- Not making the home your primary residence
- Renting out the home full-time
- Keeping homestead in another state
- Missing the March 1 filing deadline
Additional Exemptions
Florida also offers additional exemptions for seniors (65+ with income limits), disabled veterans, surviving spouses of veterans and first responders, and widows/widowers. Check with the Property Appraiser's office to see if any apply.