What is a Homestead Tax Deferral?
The homestead tax deferral program allows homeowners who are entitled to claim homestead exemption to delay payment of taxes and non-ad valorem assessments based on criteria set forth by Fla. Statute 197.252.
A homestead tax deferral becomes a lien against the property. The lien will accrue interest until the deferred tax balance is paid.
The interest rate is set forth by the Florida Department of Revenue not to exceed 7%.
How can I get a property Tax Deferral?
You can file an application for property tax deferral (Form DR-570) with the Tax Collector's office beginning November 1 of the current tax year. A new application must be submitted each year by March 31st. Application(s) are typically approved or denied within one week of receipt (of all required documentation).
Important: You must also submit an Affidavit for Homestead Tax Deferral Application (PDF 70 KB)
Who determines if I am eligible for property Tax Deferral?
The Broward County Records, Taxes and Treasury Division determines whether or not taxes are eligible for deferral, based on requirements of the statute.
What are the eligibility requirements?
In addition to the requirement that the applicant be entitled to claim homestead exemption on the property, other eligibility requirements include:
- Applicant is entitled to claim senior exemption – the portion of ad valorem taxes plus non-ad valorem assessments which exceed 3 percent of the applicant's household income for the prior calendar year may be deferred;
- Applicant's household income for the prior calendar year is less than $10,000 or is less than the amount of the household income designated for the additional homestead exemption and the applicant is 65 years of age or older – ad valorem taxes plus non-ad valorem assessments may be deferred in their entirety;
- No taxable income or prior year income less than $10,000 – entire tax amount of ad valorem and non-ad valorem assessments may be deferred (applies to anyone regardless of age);
- Taxes that exceed 5 percent of applicant's household income for the prior calendar year – tax may be deferred up to the amount that exceeds the income (applies to anyone regardless of age);
- Total amount of deferred taxes, non-ad valorem assessments and interest plus the total amount of all other unsatisfied liens on the homestead cannot exceed 85 percent of the assessed value of the homestead;
- Primary mortgage financing on the homestead may not exceed 70 percent of the assessed value of the homestead;
- Fire and extended coverage insurance must be in force with a loss payable clause to benefit Broward County Records, Taxes and Treasury Division, and a clause obligating the carrier to notify the loss payee of late premium payment, cancellation or non-renewal of policy on the property;
- A copy of the income tax return from the prior year for each member of the household must be submitted.
When do deferred taxes have to be paid?
Deferred taxes must be paid if:
- there is a change in the use of the tax-deferred property, such that the owner is no longer entitled to claim homestead exemption for the property;
- property owner fails to maintain the required fire and extended insurance coverage on the tax-deferred property;
- there is a change in ownership of a tax-deferred property; and
- there is a year in which the total amount of deferred taxes, non-ad valorem assessments and interest exceeds 85% of the just value.