Every tax season, millions of first-time buyers Google some version of "first-time homebuyer tax credit" expecting to find free money. Most don't find what they're looking for, because the federal program they're thinking of expired in 2010 and hasn't come back. Florida does have programs worth knowing about. They just don't work the way people expect.
If you're buying your first home in Florida this year, here's what you can actually access in 2026 and how each program affects your purchase.
The Federal First-Time Homebuyer Tax Credit Is Gone
The $8,000 federal first-time homebuyer tax credit existed for homes purchased between April 2008 and April 2010. It was a one-time stimulus measure tied to the housing crash. Congress has introduced new bills to revive something similar, most recently the First-Time Homebuyer Act of 2021, but as of 2026, none have passed. There is no active federal first-time homebuyer tax credit.
What does exist is a range of state and local assistance programs, tax deductions you can claim once you own, and grant money that doesn't need to be repaid. These are less exciting to Google, but they can put real dollars toward your purchase.
What Florida Actually Offers First-Time Buyers in 2026
Florida Housing Finance Corporation (Florida Housing) runs the state's main homebuyer assistance programs. These are the programs active in 2026.
FL Assist Second Mortgage provides up to $10,000 toward your down payment or closing costs. It's a deferred, 0% interest loan, meaning no monthly payment, and it only comes due when you sell, refinance, or pay off your first mortgage. On an FHA purchase where your required down payment is 3.5%, this can cover all of it and then some.
The FL HFA Preferred Grant is a true grant: 3% to 4% of the loan amount, no repayment required. It pairs with Florida Housing's first mortgage product and has income limits that vary by county. In most Tampa Bay counties the limit sits above $80,000 for a household of two, which means a significant chunk of first-time buyers qualify.
Hometown Heroes targets essential workers: teachers, firefighters, law enforcement, nurses, and other qualifying professions. It offers up to 5% of the loan amount (capped at $35,000) in down payment assistance, also as a 0% deferred second mortgage. Our guide to Florida down payment assistance programs in 2026 covers eligibility and income limits in detail.
Tax Benefits You Do Get When You Buy in Florida
Once you own, several deductions become available at the federal level. The mortgage interest deduction lets you deduct interest paid on your mortgage if you itemize, valuable in the early years of a loan when interest makes up the bulk of each payment. On a $350,000 mortgage at 6.75%, you'd pay roughly $23,000 in interest in year one.
Property taxes are also deductible, up to the $10,000 SALT cap combined with state and local taxes. For most Florida buyers, property taxes run 1% to 1.5% of assessed value, so a $350,000 home means roughly $3,500 to $5,250 a year, well within that cap.
Florida's homestead exemption is separate from your federal return but still matters: it reduces your home's assessed value by $25,000 for all tax purposes and an additional $25,000 for non-school property taxes, lowering your actual property tax bill. File the exemption with your county property appraiser by March 1 in the year after you buy. For a full picture of what homeownership saves you on taxes each year, see our post on tax benefits of buying a home in Florida in 2026.
Find out which down payment program you qualify for
We can tell you in about 15 minutes which Florida Housing program fits your income and purchase price, and how much it's worth.
Schedule a Free CallWhat to Focus on Instead of the Credit
The most common mistake first-time buyers make around tax season is waiting for a federal credit that might materialize. Spring is the most competitive buying season in Florida, and that tends to be when rates are also moving. The programs that exist right now, FL Assist, the HFA grant, and Hometown Heroes, all have limited funding that gets allocated on a first-come basis. Waiting to see if Congress passes something else costs you real opportunities.
If you're pre-approved and looking at homes in the $250,000 to $450,000 range in Tampa Bay, down payment assistance is a conversation worth having now. We can pair you with the right program and get the pre-approval letter you need to make a competitive offer.
