Homestead

Exemptions, laws and permits for Cape Coral homeowners

On the ballot Nov 3, 2026: Amendment 3

  • Would raise the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028. School taxes still apply.
  • Would lower the annual assessment cap on non-homestead property (second homes, rentals) from 10% to 5%.
  • Needs 60% voter approval. If it passes, it takes effect Jan 1, 2027.
  • Timing matters: people who establish Florida residency by Dec 31, 2026 qualify for the higher exemption; later arrivals get it starting in their fifth year.
  • Nothing changes unless voters approve it.

Deadline: March 1

Own and live in the home on January 1, then apply with the Lee County Property Appraiser by March 1.

Apply with Lee County

Buying a Cape house? Budget on your numbers, not the seller's

  • The assessed value resets to market value when the home sells, so the seller's Save Our Homes savings don't transfer to you.
  • Estimate your own tax bill from the purchase price using the Lee County Property Appraiser's tax estimator.
  • Also check for UEP assessments on the tax bill (see Sewer / UEP).

The homestead exemption

Up to $50,000 off your home's assessed value, indexed for inflation — up to $51,411 for the 2026 tax year.

Tell me more

  • The first $25,000 is exempt from all property taxes, including school taxes.
  • A second $25,000 applies to assessed value between $50,000 and $75,000, for non-school taxes only. This second amount is adjusted for inflation starting 2025 (2024 Amendment 5).
  • You must own the home and make it your permanent residence as of January 1 of the tax year.
  • Apply with the Lee County Property Appraiser by March 1. Late filing is possible only in limited cases.
  • Once approved it renews automatically each year, as long as you still qualify.

What to bring when you apply

Proof that you live here full-time.

Tell me more

  • Recorded deed or proof of ownership.
  • Florida driver's license or ID card with the property address.
  • Florida vehicle registration (if you own a vehicle) and Florida voter registration (if a U.S. citizen), or a declaration of domicile.
  • Social Security numbers for owners and spouse. Non-citizens need proof of permanent residency.
  • Claiming a permanent residence in another state or country disqualifies you.

Save Our Homes: the 3% cap

Once homesteaded, your assessed value can rise at most 3% a year (or inflation, if lower).

Tell me more

  • The cap starts the year after your homestead is first granted.
  • The home is reassessed at full market value after a sale or change of ownership.
  • Portability: when you move to a new Florida homestead, you can carry up to $500,000 of the capped savings with you. Apply within 3 tax years of leaving the old homestead.
  • Non-homestead property (second homes, rentals) is capped at 10% a year for non-school taxes instead.

Other exemptions you may add

Extra savings for seniors, veterans, surviving spouses and people with disabilities.

Tell me more

  • Widow / widower and disability exemptions: $5,000 each.
  • Veterans with a service-connected disability of 10% or more: $5,000. Veterans rated 100% permanently and totally disabled may be fully exempt.
  • Surviving spouses of first responders or military killed in the line of duty may be fully exempt.
  • Senior (65+) low-income exemptions are local options — ask the Property Appraiser which apply in Cape Coral and the income limit this year.

Homestead protection (not just taxes)

Florida's constitution protects your home from most creditors and limits how it can be left to heirs.

Tell me more

  • Your homestead generally can't be forced to sale by most creditors (inside city limits, up to ½ acre). Mortgages, property taxes and home-improvement liens are exceptions.
  • If you have a spouse or minor child, you can't freely leave the homestead to someone else in your will. Talk to a Florida estate attorney.
  • Selling or mortgaging a homestead usually requires your spouse's signature, even if they're not on the deed.

Renting out a homestead

Renting can cost you the exemption.

Tell me more

  • Renting the entire home for more than 30 days a year in two consecutive years counts as abandoning the homestead.
  • Losing it improperly can bring back-taxes, a 50% penalty and 15% interest per year for up to 10 years.
  • Vacation-rental rules in Cape Coral are a separate question — check with the city before listing.

Cape Coral permits & rules for your home

Most work on the house — roofs, docks, seawalls, pools, fences, A/C, windows — needs a city permit.

Tell me more

  • Permits are issued by the City of Cape Coral Development Services, applied for online.
  • Homeowners can pull some permits themselves under Florida's owner-builder rule, but must do the work personally and can't sell or rent within a year.
  • Docks, boat lifts and seawalls can also need state or federal environmental approval — ask the city what applies to your canal.
  • Check for open or expired permits before you buy; they can stay with the property.

General information from official sources, not legal or tax advice. Amounts and rules change — confirm with the Property Appraiser or an attorney before you rely on them.

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