Is There a First-Time Home Buyer Tax Credit in Florida?

There is no first-time home buyer tax credit in Florida. The state does not offer a credit on any tax return for purchasing a home, and there is no active federal credit either. What Florida does offer is a mortgage credit certificate program in certain counties (which functions like a true federal tax credit), a wide range of down payment and closing cost assistance programs, and the homestead exemption that reduces property taxes for every qualifying homeowner.

The One True Tax Credit: Mortgage Credit Certificates

A mortgage credit certificate, or MCC, is the closest thing to a first-time buyer tax credit available in Florida. It lets a qualifying homeowner claim a percentage of annual mortgage interest as a dollar-for-dollar credit on their federal income taxes, every year they hold the mortgage. That is different from a deduction, which only reduces taxable income.

Florida Housing Finance Corporation used to run a statewide MCC program, but it has been discontinued and the governing administrative rule was repealed in April 2026.¹ MCCs are now offered only through local housing finance authorities, and availability depends on where you buy.

The Jacksonville Housing Finance Authority in Duval County runs an active program allowing qualifying buyers to claim 20% of their annual mortgage interest as a federal tax credit. Buyers generally must be first-time purchasers, occupy the home within 60 days of closing, and meet income limits (for example, up to $108,599 for a one- or two-person household in non-targeted areas) and purchase price caps of $350,000.²

The Escambia County Housing Finance Authority launched a 2026 MCC program in May 2026 that extends beyond Escambia itself to more than 20 participating Florida counties, including Alachua, Bay, Leon, Marion, Okaloosa, Santa Rosa, and St. Lucie.³ An MCC can be worth up to $2,000 per year in federal tax savings for as long as the homeowner holds the mortgage.⁴

If you are buying outside a participating county, no MCC is available to you. Check with your local housing finance authority before assuming eligibility.

Down Payment and Closing Cost Assistance

Most of the real financial help for Florida first-time buyers comes as down payment and closing cost assistance, not tax credits. These programs typically take the form of second mortgages, some deferred, some forgivable, and some with monthly payments.

Statewide Programs Through Florida Housing

Florida Housing Finance Corporation runs the main statewide options. All of them must be paired with a Florida Housing first mortgage from an approved lender. Buyers need a credit score of at least 640, must meet the IRS definition of a first-time buyer (no primary residence ownership in the prior three years), and must complete a homebuyer education course. Income and purchase price limits vary by county.⁵

Florida Assist (FL Assist) provides up to $10,000 as a 0% interest, deferred second mortgage. There are no monthly payments, but the loan is not forgivable and must be repaid when the home is sold, refinanced, transferred, or no longer the borrower’s primary residence.⁵

The Florida Homeownership Loan Program (FL HLP) offers $12,500 as a second mortgage at 3% interest over 30 years. Monthly payments are required and count toward the borrower’s debt-to-income ratio.⁵

The HFA Preferred and HFA Advantage PLUS products provide 3%, 4%, or 5% of the total loan amount as a forgivable second mortgage, forgiven at 20% per year over five years. Stay in the home five years and you owe nothing back. This option is only available with conventional HFA Preferred or HFA Advantage first mortgages.⁵

Florida Hometown Heroes

The Hometown Heroes Housing Program provides between $10,000 and $35,000 (up to 5% of the first mortgage amount) as a 0% interest, deferred second mortgage with a 30-year term. It is not forgivable and must be repaid on sale, refinance, transfer, or when the borrower vacates.⁶

Eligibility is limited to full-time employees of Florida-based employers in specific fields: healthcare workers, school staff, first responders, public safety and court employees, childcare workers, and active military, reserves, National Guard, and veterans. Buyers must be first-time purchasers and meet county income and loan limits.⁶

Funding tends to disappear fast. As of late March 2026, the program tracking portal showed no funds remaining, with applicants told to check back for cancelled reservations.⁷ There is no fee to apply, and Florida Housing warns that anyone charging an upfront fee to help access the program is running a scam.⁶

Local City and County Programs

Many Florida cities and counties run their own assistance programs, often funded through the State Housing Initiatives Partnership (SHIP). These are usually zero-interest, deferred, forgivable loans. Terms and amounts vary widely. A few of the larger examples:

Orange County provides up to $70,000 for very-low-income buyers, $40,000 for low-income, and $10,000 for moderate-income (up to 120% of area median income).⁸
Tampa’s Dare to Own the Dream offers $30,000 to $50,000 as a 0% deferred loan, fully forgivable after 20 years of owner occupancy. Minimum credit score 600; home price cap $450,000 within city limits.⁹
Miami-Dade County offers several stackable programs. The county’s Homebuyer Loan Program goes up to $100,000 at 1% interest or $80,000 at 2%, with a separate Down Payment Assistance Program of up to $35,000 at zero interest. The Miami-Dade Economic Advocacy Trust adds up to $28,000 in zero-interest deferred loans, layerable with other programs for a combined total of up to $120,000. The Housing Finance Authority of Miami-Dade County offers up to $15,000 as a deferred second mortgage.¹⁰¹¹¹²
Palm Beach County’s Homebuyer Match Pilot Program matches the buyer’s own contribution dollar for dollar up to $50,000, with a $10,000 minimum buyer investment, a $700,000 purchase cap, and income up to 140% of area median income.¹³
Pinellas County’s Home Key Plus provides $10,000 in Pinellas and $7,500 in Pasco and Polk, as a deferred 0% second mortgage. Minimum credit score 660.¹⁴

Dozens of other counties run SHIP-funded programs. HUD maintains a directory of Florida assistance organized by county.¹⁵ Funds are usually limited and waiting lists are common, so apply early.

The Florida Homestead Exemption

Every first-time buyer in Florida should file for the homestead exemption on their primary residence. It is not a credit on a tax return, but it reduces the taxable value of the home for property tax purposes by up to $50,000. The amount is adjusted slightly for inflation under a 2025 amendment; in Miami-Dade County, for example, the 2025 exemption was $50,722.¹⁶

The first $25,000 applies to all taxing authorities. The second $25,000 applies to everything except school district levies on assessed values above $50,000.¹⁶

Qualifying also triggers the Save Our Homes assessment cap, which limits annual increases in assessed value. You must hold title, use the property as a permanent residence, and be a Florida resident who is a U.S. citizen or permanent resident. File the application with your county property appraiser by March 1 of the year following purchase.¹⁶ The Florida Department of Revenue publishes a guide called “Property Tax Information for First-time Florida Homebuyers.”¹⁷

Federal Tax Deductions Available After You Buy

Florida has no state income tax, so homeownership-related tax savings on an annual return come from the federal side. These are deductions, not credits, and they only help if your itemized deductions exceed the standard deduction. For the 2025 tax year, the standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly.⁴

The mortgage interest deduction lets homeowners who itemize deduct interest on up to $750,000 of mortgage debt used to buy or improve a primary or secondary home. The One Big Beautiful Bill Act, signed in mid-2025, made this deduction permanent and added a new deduction for mortgage insurance premiums.¹⁸

The state and local tax (SALT) deduction, which includes property taxes, rose from $10,000 to $40,000 starting with the 2025 tax year. The increase is temporary: the cap goes up 1% annually through 2029 and then reverts to $10,000 in 2030. The higher cap phases out for taxpayers with modified adjusted gross income above $500,000.¹⁹

When you eventually sell, you can exclude up to $250,000 of capital gains from a primary residence sale ($500,000 for married couples filing jointly) if you lived in the home for at least two of the five years before selling.²⁰

Proposals That Did Not Become Law

The 2026 Florida legislative session saw several bills aimed at first-time buyers. None passed.

House Bill 311 and its Senate companion SB 1672 proposed a Homebuyer Workforce Tax Credit. Employers contributing $1,000 to $5,000 toward a full-time employee’s down payment or closing costs would have received a 100% credit against Florida corporate income or insurance premium taxes, with employee household income capped at 120% of area median income. The program would have been capped at $500,000 per employer and $5 million statewide per year. HB 311 died on the House’s second reading calendar on March 13, 2026; SB 1672 died in the Senate Finance and Tax Committee the same day.²¹²²

A separate set of bills (HB 675, SB 756, and SB 752) would have exempted moderate-income first-time buyers from documentary stamp taxes on deeds and mortgages, which can run into the thousands on a typical purchase. All three died in committee on March 13, 2026.²³²⁴

At the federal level, the First-Time Homebuyer Tax Credit Act of 2025 (S. 2402) was introduced in the 119th Congress, but as of mid-2026 there is no indication it has advanced or been enacted.²⁵ So the practical answer stays the same: no tax credit for the purchase itself, but real money through assistance programs, a possible MCC in participating counties, and ongoing tax relief through the homestead exemption and federal deductions once you own.

1
Florida Administrative Code. Rule 67-54.005 Issuance of Certificates
2
City of Jacksonville. Mortgage Credit Certificates
3
Escambia County Housing Finance Authority. Mortgage Credit Certificate Program
4
Bankrate. Mortgage Interest Deduction
5
Florida Housing Finance Corporation. Homebuyer Loan Program
6
Florida Housing Finance Corporation. Florida Hometown Heroes Housing Program
7
eHousingPlus. Florida Housing Finance Corporation Program Highlights
8
Orange County, FL. Homebuyer Down Payment Assistance
9
City of Tampa. Mortgage Assistance
10
Miami-Dade County. Affordable Homeownership Program
11
Miami-Dade Economic Advocacy Trust. Housing Programs
12
Housing Finance Authority of Miami-Dade County. Homebuyers
13
Palm Beach County. Homebuyer Match Pilot Program
14
Pinellas County. First-Time Homebuyer Program
15
U.S. Department of Housing and Urban Development. Florida Homebuyer Assistance by County
16
Miami-Dade County Property Appraiser. Homestead Exemption
17
Florida Department of Revenue. Property Tax Exemptions
18
National Association of Home Builders. Senate Passes Tax Bill
19
TurboTax. Unlocking the New SALT Cap
20
Tax Policy Center. Tax Benefits of Homeownership
21
Florida Senate. HB 311 Bill History
22
WUSF Public Media. Could Your Boss Help You Buy a Home
23
Florida Senate. CS/HB 675 Bill Details
24
Florida TaxWatch. Housing Legislative Policy
25
U.S. Congress. S.2402 First-Time Homebuyer Tax Credit Act