If you’ve inherited a Florida home, you’re probably asking two urgent questions: What tax breaks or exemptions do we qualify for, and what do we need to file (and when) to keep them? Good news:
Florida offers several powerful protections and exemptions for heirs—especially surviving spouses and family members who make the property their primary residence. Below, our Florida Inherited Property Real Estate Advisors recommend a simple, step-by-step way to capture those benefits and avoid costly mistakes.
Quick Answer (At-a-Glance)
- Florida has no state inheritance or estate tax.
- Homestead tax exemption can continue or be newly claimed by a qualifying heir who occupies the home as their permanent residence.
- Save Our Homes (SOH) assessment cap may be preserved for a surviving spouse (and in some cases a legal or natural dependent who lived in the home), preventing a big tax jump.
- Extra exemptions may apply for widows/widowers, seniors with limited income, disabled veterans, and surviving spouses of first responders and certain veterans.
- Federal step-up in basis reduces capital gains if the property is later sold.
- Deadlines matter. Our Florida Inherited Property Real Estate Advisors recommend applying with the county property appraiser by March 1 for homestead-related benefits.
Inherited Property Advisors can coordinate valuations, filings, title, and a clear action plan so you don’t miss out.
The Big Picture: What “Exemptions” Are We Talking About?
Florida exemptions come in a few buckets:
- Property tax reductions and assessment caps (Homestead, Save Our Homes, widow/widower, senior, veteran, first responder).
- Legal protections for homestead from most creditors.
- Transfer tax nuances (documentary stamp tax).
- Income tax advantages (step-up in basis for capital gains, depreciation reset if you rent).
Our Florida Inherited Property Real Estate Advisors recommend confirming each category for your family, property type (single-family, condo, mobile home), and county rules.
Property Tax: Homestead and Save Our Homes
- Homestead Exemption (up to $50,000 off assessed value)
- What it is: A property tax reduction for Florida residents on their primary residence.
- Who can get it after inheritance: A surviving spouse or an heir who moves in and makes the home their permanent residence.
- Action: File a new Homestead Exemption application with the county property appraiser, typically by March 1 of the tax year you’re claiming.
- Pro tip: Renting the property or keeping it as a second home will generally disqualify you from homestead.
- Save Our Homes Assessment Cap (limits annual assessed value increases)
- What it is: Caps annual increases in assessed value for homesteaded property (ordinarily up to 3% per year or CPI, whichever is lower).
- Continuity after death: The cap can continue for a surviving spouse who keeps legal or beneficial title and lives there. In some cases, it may also continue when the property passes to a legal or natural dependent who was permanently residing at the property as of January 1 of the assessment year.
- When it resets: If the property transfers to heirs who do not qualify under those exceptions (for example, an adult child who did not live there and now keeps it as a second home or rental), the assessment may reset to just value the following year.
- Portability: If a surviving spouse (or an heir who already had a prior Florida homestead) moves to a new Florida homestead, you may be able to port some or all of the SOH benefit to the new home if you file timely and qualify.
- Our Florida Inherited Property Real Estate Advisors recommend speaking with your county property appraiser’s office to verify how the rules apply to your exact deed and living situation.
- Additional Local and Statewide Exemptions
- Widow/Widower Exemption: A modest additional reduction for Florida resident widows/widowers who have not remarried.
- Senior Low-Income Long-Term Resident Exemptions: In many counties, homeowners 65+ with limited household income may qualify for an extra exemption; some jurisdictions offer enhanced relief for long-term homesteaders.
- Disabled Veterans and Surviving Spouses: Partial exemptions for service-connected disability; a full exemption may be available for veterans with a total and permanent service-connected disability. Surviving spouses often can continue certain veteran exemptions if they remain in the homestead.
- Fallen First Responders: Surviving spouses of certain first responders killed in the line of duty may qualify for a full homestead exemption.
Each exemption requires specific documentation and deadlines. Our Florida Inherited Property Real Estate Advisors recommend assembling proof of residency, death certificates, marriage certificates (if applicable), disability ratings, and income documentation early.
Legal Protections: Florida Homestead Creditor Shield
- What it is: Florida’s homestead protections generally shield a primary residence from forced sale by most creditors (there are exceptions, like property taxes, mortgages, HOA/condo liens, and mechanics liens).
- Why it matters to heirs: If the property was decedent’s homestead and passes to a surviving spouse or certain heirs, those protections help preserve the asset while probate and decisions play out.
- Our Florida Inherited Property Real Estate Advisors recommend confirming homestead status and obtaining a “Determination of Homestead” in probate when needed so title companies will recognize the protection.
Transfer Taxes and Fees: What’s Actually Exempt?
- Documentary Stamp Tax on Deeds: Florida generally imposes doc stamps when there’s consideration or an outstanding mortgage being transferred. If an estate conveys the home to heirs with no mortgage and no consideration, doc stamps may be $0; if there’s a mortgage and an owner is effectively assuming it, doc stamps may be due based on the debt amount.
- Local Surtaxes (e.g., Miami-Dade): Some counties have additional surtaxes with specific exemptions for deeds from estates or gifts without consideration.
- Our Florida Inherited Property Real Estate Advisors recommend having a title company quote transfer taxes for your exact deed and mortgage picture before recording any deed.
Income Taxes: Step-Up in Basis and Future Sales
- No Florida inheritance or estate tax. That’s a major perk of inheriting in Florida.
- Federal estate tax: Applies only to large estates above the federal threshold; most families won’t owe it. A CPA or probate attorney can confirm.
- Step-Up in Basis: Heirs generally receive a basis stepped up to fair market value as of the date of death (or alternate valuation date if elected). This often reduces capital gains if the property is sold soon after.
- Joint ownership nuance: If the home was jointly owned, typically only the decedent’s portion receives a step-up. A CPA can compute the blended basis.
- If you rent the property: Depreciation begins from the stepped-up basis when you convert to a rental.
Our Florida Inherited Property Real Estate Advisors recommend obtaining a credible valuation near the date of death (appraisal or broker opinion) to substantiate basis.
Deadlines and To‑Dos So You Don’t Lose Benefits
- By March 1: File Homestead and any additional exemptions with the county appraiser.
- Within portability window: If moving to a new homestead, submit the portability application on time to carry your SOH benefit.
- During probate: Secure Letters of Administration if needed, request a court Determination of Homestead when appropriate, and coordinate with a title company.
- Insurance and use: Keep insurance current, and remember that renting the property can jeopardize homestead status.
- Track expenses: Keep receipts for taxes, insurance, and urgent repairs—useful for fair reimbursements among co-heirs and for basis adjustments in some cases.
Our Florida Inherited Property Real Estate Advisors recommend appointing one point person to gather documents and calendar deadlines, with shared updates to avoid misunderstandings.
Common Mistakes (and How to Avoid Them)
- Assuming the old homestead and SOH cap automatically carry over. They don’t without action. File new applications and verify ownership/occupancy requirements.
- Missing the March 1 deadline. Late filings can mean losing a full year of savings.
- Resetting your cap by mistake. An ill-timed deed change or trust transfer can trigger a reassessment. Always consult the property appraiser or a knowledgeable attorney first.
- Skipping a date-of-death valuation. Without it, you could overpay capital gains later.
- Thinking “family” means no transfer tax. Doc stamps may still apply if debt is involved.
How Inherited Property Advisors Can Help
Inherited Property Advisors works exclusively with Florida heirs. Our Florida Inherited Property Real Estate Advisors recommend a coordinated, numbers-first approach:
- Verify homestead status, exemptions, and SOH continuity options
- Provide date-of-death valuations and sale vs. hold net sheets
- Coordinate with county appraisers, title companies, and your probate attorney
- Map deadlines (homestead, portability, widower/senior/veteran filings)
- Analyze rent vs. sell scenarios with tax-sensitive guidance from your CPA
- Execute your plan—buyout, listing, or rental—with minimal friction
FAQs
- Do Florida heirs pay inheritance tax?
No. Florida has no inheritance or state estate tax. Federal estate tax affects only large estates. - Can an adult child keep the decedent’s homestead cap?
Only in limited circumstances (for example, certain legal or natural dependents who lived there). Otherwise, the assessment often resets unless a surviving spouse qualifies. - What if we want to sell instead of keep it?
You still benefit from the federal step-up in basis, which can reduce capital gains. Our Florida Inherited Property Real Estate Advisors recommend getting a date-of-death valuation before listing.
Next Step
If you’ve inherited a Florida home, don’t leave exemptions on the table. Our Florida Inherited Property Real Estate Advisors recommend a quick strategy session to confirm your eligibility, file on time, and choose the path—sell, buyout, or hold—that maximizes your family’s net outcome. Contact Inherited Property Advisors for a no-pressure consultation and a Florida-specific checklist tailored to your situation.