Florida Real Estate Blog

Thinking of upgrading or downsizing your home in Florida? If your current property has been your homestead, there’s a valuable tax benefit you may not want to leave behind. It’s called Homestead Property Tax Portability, and it can save you thousands when transitioning to a new home.

What Is Homestead Portability?

Homestead portability allows Florida homeowners to transfer the tax savings from their current homestead property to a new homestead within the state. These savings stem from the Save Our Homes (SOH) benefit, which limits how much your home’s assessed value can increase each year—capped at 3% or the Consumer Price Index (CPI), whichever is lower. Over time, this creates a gap between your home’s market value and assessed value, which can significantly reduce your annual property taxes.

How Portability Works

When you sell your homesteaded property and purchase a new one in Florida, you can transfer up to $500,000 of your SOH benefit to your new home. That transferred amount reduces the assessed value of your new homestead—lowering your future property taxes. Portability Requirements To qualify, homeowners must: Establish a new homestead exemption on the replacement property. Do so within three years of abandoning the previous homestead. File the appropriate portability application with their county property appraiser.

Why It Matters

Whether you’re buying a larger family home or downsizing into retirement, portability ensures your years of tax savings aren’tlost in the move. It's especially helpful in a market where property values are on the rise—allowing you to keep your tax burden in check even if you're purchasing a more expensive home.

Have questions about your specific situation or thinking of making a move in Florida? Let’s talk! Whether buying, selling, or planning ahead, understanding how homestead portability works can make a big financial difference. Reach out anytime—I’m here to help!