Alachua County Property Appraiser explains Amendment 5: Annual inflation adjustment to homestead exemption value
Press release from Alachua County Property Appraiser Ayesha Solomon
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.
For those worried about the possible loss of tax revenue – don’t.
The difference will likely be made up by other means – remember those “special assessments.” Those are brought to you by the local ruling class who would rather fill their budget by reducing ours.
There’s at least 3 ignorant people who either have their mommies and daddies paying their expenses, or they’re just plain stupid.
People without kids shouldn’t have you pay “school taxes”. Total ripoff
Totally agree
But if you start that well, I dont use the city or county for trash pick up so I should not pay that tax. I didnt call 911 for fire, ambulance, or police response this year so I shouldn’t have to pay that. I do not use the library or own a library card so I do not need to pay for that. Unfortunely taxes are a fact of life and living in any community in the USA you will gave taxes. Insurance is the same way. I never have made a claim for any home damage or car damage but I still have to pay for insurance. Be thankful there are not state or local income taxes like other states have.
I feel like if it a service you would probably use like 911 etc, then pay taxes, if it is a service you will not use, like garbage pickup because you are out of city limits then you shouldn’t have to pay, in other words only pay for the services you actually use or will use.
+1
I’m old, with no kids or grandkids in this school system. However, we all benefit from the next generations being educated and raised to become productive citizens. This principal is part of our lang standing American tradition of providing public education for all kids and we should be proud of that, even when the system is not perfect. What system that serves millions – or hundreds – is ever perfect.
What ya bet the assessments will go up to cover the amount that is saved or they will just adjust the value of your property like before.