If you own a second home in Palm Beach, you may be wondering if you can claim Florida’s homestead exemption and lower your tax bill. The rules can feel technical, especially if you split time between states. This guide explains what counts as a primary residence in Florida, key deadlines, and how portability works if you become a full‑time Floridian. You will get clear answers tailored to Palm Beach so you can plan with confidence. Let’s dive in.
What the homestead exemption means
Florida’s homestead exemption reduces the taxable assessed value of your primary residence. It can significantly lower your annual property taxes. The exemption is separate from the Save Our Homes cap, which limits how much your assessed value can increase each year.
Two benefits work together:
- The homestead exemption reduces assessed value, commonly up to $50,000 in Florida.
- The Save Our Homes cap limits annual assessed value increases to the lesser of 3% or the change in the Consumer Price Index.
If you qualify, both the exemption and the cap apply to your Palm Beach residence as your homestead.
Who qualifies in Florida
To claim homestead, you must own and occupy the property as your permanent residence on January 1 of the tax year and file by the standard March 1 deadline. Florida allows one homestead per person. If you claim a homestead in another state or county, you cannot claim one on a second home in Palm Beach.
Florida looks at your intent to make the property your permanent home, not just how many days you spend here. Evidence of domicile can include a Florida driver’s license, voter registration, vehicle registration, utility bills in your name at the Palm Beach address, and where you receive important mail. If you keep voter or vehicle registration in another state, that usually weighs against Florida homestead eligibility.
Second‑home scenarios
Scenario A: Seasonal owner keeps primary elsewhere
If you keep your legal domicile and homestead in another state or county, you cannot claim a Florida homestead on your Palm Beach second home. Applying in Florida while maintaining a homestead elsewhere is prohibited and can trigger penalties.
Scenario B: You move and make Palm Beach primary
If you abandon your prior domicile and establish Palm Beach as your permanent home, you may qualify. You must own and occupy the property on January 1 and file by March 1. Be prepared to show objective proof of Florida residency and domicile consistent with county requirements.
Scenario C: You divide time between two homes
Spending more time in Florida does not, by itself, create eligibility if you continue to maintain legal domicile elsewhere. The property appraiser evaluates the full pattern of your ties and intent, not simply day counts.
Deadlines and how to apply
Florida’s standard filing deadline is March 1 for that tax year. You must own and occupy the home on January 1 to qualify for the same year. If you buy and move in after January 1, you can usually apply for the following tax year when you meet the ownership and occupancy requirement.
You file with the Palm Beach County Property Appraiser. Many applicants submit online and provide proof of ownership and Florida domicile. Typical documents include a deed or closing statement, Florida driver’s license or ID showing the Palm Beach address, vehicle registration, voter registration, and recent utility bills. Once granted, the exemption usually renews automatically while you remain eligible.
Before you file, confirm the current March 1 deadline and document list with the Palm Beach County Property Appraiser. Local procedures and online portals can change.
Save Our Homes cap
The Save Our Homes cap limits the annual increase in your homestead’s assessed value to the lesser of 3% or the change in the Consumer Price Index. Over time, this often creates a gap between market value and assessed value, which helps stabilize your tax base.
If you later sell your homestead and buy another in Florida, you may be able to transfer some or all of that gap to the new homestead through portability.
Portability basics
Portability lets you move your accrued Save Our Homes benefit from one Florida homestead to another. It reduces the new home’s assessed value, which can lower taxes. This only applies to moves within Florida. You cannot transfer a homestead benefit from an out‑of‑state property.
If you are moving from another Florida homestead to Palm Beach, ask the property appraiser about portability forms and timelines when you apply for your new homestead. Calculations and limits are technical, so confirm current rules and filing windows with the county before you plan for exact savings.
Rental use and eligibility
Owning a home and renting it part of the year does not automatically disqualify you, as long as you still occupy it as your permanent residence. Significant rental activity can be reviewed and may affect eligibility. The Town of Palm Beach has rules for short‑term rentals, so confirm local regulations before you rent.
When you apply, disclose rental use if the county requires it and be prepared to show the property is your permanent residence.
Compliance and audits
Palm Beach County cross‑checks records such as DMV, voter rolls, utility data, and other sources to verify eligibility. If the county audits your claim, you will be asked to provide documentation.
Improper claims can lead to the removal of the exemption, repayment of taxes, and penalties. Intentional fraud can carry criminal consequences under state law. When in doubt, ask questions before you file and seek professional advice.
Your next steps
- Verify the March 1 filing deadline and current documentation requirements with the Palm Beach County Property Appraiser.
- Gather evidence of domicile early: Florida driver’s license, voter registration, vehicle registration, and recent utility bills linking you to your Palm Beach address.
- If you are moving from another Florida homestead, request portability instructions and forms when you apply.
- If you split time between states, consult a Florida property tax attorney or a CPA with multi‑state residency experience.
- If you plan to rent the property, confirm local rental rules in Palm Beach and understand how rental activity might affect your claim.
If you are weighing a seasonal purchase today with a plan to establish Florida domicile later, a clear filing strategy can help you time your move, application, and potential portability. For private guidance on neighborhoods, building policies, and ownership timelines aligned with your goals, connect with Elizabeth DeWoody for a confidential consultation.
FAQs
Can a Palm Beach second home qualify for Florida’s homestead?
- Not unless you establish the property as your permanent residence, meet the January 1 ownership and occupancy requirement, and file by March 1.
How does Florida define my primary residence for homestead?
- The county looks at your intent and ties to Florida, including driver’s license, voter and vehicle registration, bills, and where you maintain legal domicile.
If I change my driver’s license to Florida, is that enough?
- It helps but is not conclusive by itself; the property appraiser reviews the full pattern of evidence and your intent to make Florida your permanent home.
I bought after January 1. When can I claim homestead?
- You generally cannot claim for that year; you can apply the following year once you meet the January 1 ownership and occupancy requirement and file by March 1.
Can I transfer a homestead benefit from another state to Palm Beach?
- No, portability applies only between Florida homesteads and cannot be used to transfer a benefit from an out‑of‑state property.
Can I rent my Palm Beach home and keep homestead?
- Possibly, if rental is incidental and you occupy the home as your permanent residence; significant rental activity may be reviewed and can affect eligibility.
