Homestead Portability: How to Keep Your Tax Savings When You Move Within Florida
If your Florida home is your primary residence, you have probably benefited from the state's Homestead Exemption, which can provide up to a $50,000 reduction in taxable value, as well as the Save Our Homes benefit, which generally caps annual increases in assessed value at 3%.
When you move to another primary residence in Florida, you may be able to take the tax savings you have accumulated under Save Our Homes with you. This is known as Homestead Portability.
Here is what it is, how it works, and why it matters if you are planning a move.
What Is Homestead Portability?
Florida's Save Our Homes (SOH) provision limits annual increases in the assessed value of a homesteaded property to 3% or the Consumer Price Index, whichever is lower.
Over time, this can create a significant gap between your home's market value and its lower assessed value — and that gap is where your tax savings live.
Portability allows you to transfer up to $500,000 of that accumulated assessment benefit from your previous Florida homestead to a new one, subject to eligibility requirements.
A Simple $1 Million Example
Let's say your current Florida home has:
Market value: $700,000
Assessed value: $450,000
Accumulated SOH benefit: $250,000
You sell your home and purchase a new Florida primary residence for $1,000,000.
If you qualify to transfer the full $250,000 benefit:
$1,000,000 new home value
– $250,000 portability benefit
= $750,000 assessed value
Your Homestead Exemption would then further reduce the applicable taxable value.
For a simplified illustration using a 2% tax rate, reducing the assessed value by $250,000 could mean approximately $5,000 in property tax savings per year. Actual savings will vary based on local millage rates, exemptions and taxing authorities.
Why Does It Matter?
If you have owned your Florida home for several years and it has appreciated significantly, your portability benefit could be substantial.
This is also why buyers should never assume that the property taxes paid by the current owner will be their taxes after closing. Your purchase price, Homestead Exemption and available portability benefit can all affect your future tax bill.
Before buying your next Florida home, find out how much portability you may have. It could make a meaningful difference in your annual cost of ownership.
Homestead Exemption and portability are subject to eligibility requirements, application deadlines and Florida law. Consult your county Property Appraiser for your specific calculation.
