Florida Property Tax
Learn about Florida property taxes, roles of the Property Appraiser, Tax Collector, and Value Adjustment Board, plus insights on assessments and appeals.
Property Appraiser
Property appraisers establish the value of your property each year as of January 1. They review and apply exemptions, assessment limitations, and classifications that may reduce your property’s taxable value. Use the drop-down menu to visit your county property appraiser’s website.
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Tax Collector
Tax collectors send tax bills, collect payments, approve deferrals, and sell tax certificates on properties with delinquent taxes. They answer questions about payment options and deferrals. Tax collectors also process and issue refunds for overpayment of property taxes. After collecting taxes, the tax collector distributes property taxes to the local governments and taxing authorities. Use the drop-down menu to visit your county tax collector’s website.
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Value Adjustment Board
The clerk of court performs tax deed sales and is responsible for the operation of the value adjustment board (VAB) process. The VAB hears and rules on challenges to a property’s assessment, classification, or exemptions. Use the drop-down menu to visit your county VAB’s website.
Find A County Official
Property Tax Library
Real Property Tax FAQ
Assessed Value = Just Value - Assessment Limits
Taxable Value = Assessed Value - Exemptions
Total Tax Liability = Taxable Value x Millage Rate
Example: Assume a homestead has a just value of $300,000, an accumulated $40,000 in Save Our Homes (SOH) protections, and a homestead exemption of $25,000 plus the additional $25,000 on non-school taxes.
The millage is seven mills for county schools and 11 mills for all non-school taxing authorities combined (city, county, and special districts).
$300,000 (Just Value) - $40,000 (Accumulated SOH) = $260,000 (Assessed Value)
School Taxes
$260,000 (Assessed Value) - $25,000 (Exemption) = $235,000 (Taxable Value) x .007 (Millage) = $1,645 (Tax Liability)
Non-School Taxes
$260,000 (Assessed Value) - $50,000 (Exemption) = $210,000 (Taxable Value) x .011 (Millage) = $2,310 (Tax Liability)
Total Taxes (School Tax Liability + Non-School Tax Liability) = $3,955 ($1,645 + $2,310)
January 1 | Date of assessment |
March 1 | Deadline for property owners to file with the county property appraiser for exemptions or agricultural or other classifications |
April 1 | Deadline for owners of tangible personal property to file a Form DR-405 return with the county property appraiser |
June to July | Property owners who want to appeal a denial of exemption, classification, portability, or tax deferral must file a petition with the value adjustment board 30 days after the denial letter was mailed. |
August | The property appraiser mails the Notice of Proposed Property Taxes (Truth in Millage or “TRIM” notice). |
September | Property owners who want to appeal their property value to the value adjustment board must file a petition (one of the DR-486 forms) with the clerk of the court within 25 days of the Notice of Proposed Property Taxes. |
September/October | Property owners may provide input at taxing authorities’ public hearings to adopt a tentative budget and millage rate. |
October/November | Taxing authorities hold hearings to adopt final budgets and millage rates. |
November | The tax collector sends your tax bills. See the section on payment options below. |
Several types of local governments, called taxing authorities, can levy property taxes to support the services they provide to people in a county, city, or other specific area. These taxing authorities include counties, municipalities, school districts, and special districts, such as water management, fire protection, mosquito protection, or other special districts.
Before adopting a budget and setting a millage (tax) rate, taxing authorities must hold public hearings and follow the statewide Truth in Millage (TRIM) requirements. These hearings are the best opportunity for property owners to comment on taxing authorities' budgets and millages. Taxing authorities advertise hearings in local newspapers and usually post notices on local government websites.
The growth in revenue from property taxes that taxing authorities assess is capped at a rate equal to the growth in Florida's per capita personal income plus new construction, unless the taxing authority’s governing board overrides the cap with a super-majority, unanimous vote or referendum.
Local governments (counties, municipalities, or special districts) can levy property for non-ad valorem assessments. These assessments are calculated on a unit basis, rather than on value. Proposed non-ad valorem assessments are based on an improvement or service to the property, such as drainage, lighting, or paving.
Your Notice of Proposed Property Taxes, Form DR-474, usually includes proposed non-ad valorem assessments at the bottom, but the taxing authorities can send them separately. They must go through the Truth in Millage (TRIM) hearing process if the assessment:
- Is being levied for the first time.
- Increases beyond the maximum rate set when it was first levied.
- Changes boundaries, unless all newly affected property owners have given written consent.
- Changes the purpose or use of the revenue.
See section 197.3632, F.S., for the statutory requirements.
Standard Payment
Generally, tax collectors send tax bills (Form DR-528) in November. Follow the instructions on the tax bill and send the payment to your county tax collector.
If your property has a mortgage and the mortgagee is the trustee for a tax escrow account, the tax collector will send the tax bill to the mortgagee and a copy to you. Your mortgagee will pay the taxes from the escrow account.
If you pay your taxes early, you will receive a discount - 4 percent in November, 3 percent in December, 2 percent in January, and 1 percent in February. The amounts are calculated for you on your bill.
If you don’t pay your taxes, they become delinquent on April 1 and tax certificates will be sold on all unpaid items by June 1.
See section 197.343, F.S.
Homestead Tax Deferral
A person who is entitled to claim the homestead tax exemption may choose to defer payment of part of the combined total taxes, including non-ad valorem assessments. You must file an annual application for tax deferral, Form DR-570, with your county tax collector by March 31 following the year when the taxes and non-ad valorem assessments were assessed. Approval for tax deferral will defer taxes that are more than 5 percent of last year’s household income. If last year’s household income was less than $10,000, all ad valorem taxes and non-ad valorem assessments will be deferred.
A permanent resident of Florida who is 65 years old or older may defer that portion of the tax that is more than 3 percent of the household income for the previous year. If the household income for the last calendar year was less than the current income limit and the applicant is 65 or older, approval of the application can defer all ad valorem taxes and non-ad valorem assessments. However, the amount that can be deferred may be limited, depending on the amount of mortgages and other unsatisfied liens on the home.
See section 197.252, F.S.
If the tax collector denies your application for a deferral and you don’t agree with the denial, you may appeal to the county value adjustment board within 30 days after the tax collector sent the denial.
Partial Payment
At the tax collector’s discretion, he or she may accept one or more partial payments for current taxes and assessments on real property or tangible personal property as long as the payment is made before the delinquency date, which is usually April 1.
The taxpayer is responsible for paying the remaining amount due. Any remaining balance not paid before April 1 becomes delinquent and is handled the same way as other delinquent taxes.
See section 197.374, F.S.
Installment Payment of Property Taxes
Taxpayers who want to prepay property taxes on the installment plan should file an application with the tax collector by May 1 of the year the taxes are assessed. After submitting an initial application, a taxpayer is not required to submit annual applications as long as the taxpayer continues choosing to prepay taxes by installment.
See section 197.222, F.S.
Property owners in Florida have a variety of rights that are protected under the Taxpayer’s Bill of Rights, which ensures fairness, privacy, and transparency in the assessment, collection, and enforcement of property taxes. Here are some key rights that property owners in Florida should be aware of:
- Right to Fair Property Assessment
- Your local property appraiser determines the market value of your property.
- If applicable, exemptions (such as homestead exemptions) are deducted from the assessed value to determine the taxable amount.
- You have the right to review your property assessment and contest it if you believe it is incorrect.
- Right to Notification of Property Taxes
- Each year, property owners receive a Notice of Proposed Property Taxes (also known as the Truth in Millage (TRIM) notice).
- This notice provides details on the proposed taxes, assessments, exemptions, and the dates of public hearings on property tax rates.
- Right to Challenge Property Assessments
- If you disagree with the property appraiser’s valuation of your property, you have the right to:
- Request an informal conference with the property appraiser to present supporting documentation for a reassessment.
- File a petition with the county Value Adjustment Board (VAB) to formally contest the valuation.
- Pursue legal action in circuit court if you remain dissatisfied with the outcome.
- Right to Participate in Public Hearings on Property Taxes
- Local taxing authorities, such as city and county commissions, school boards, and special districts, set property tax rates.
- Property owners have the right to attend public budget hearings where tax rates (millage rates) are proposed and debated.
- You can express concerns and objections before final tax rates are adopted.
- Right to Fair Tax Collection Procedures
- Property tax bills are sent in November and must be paid by March 31 of the following year.
- Discounts apply for early payments, such as a 4% discount for paying in November.
- If taxes are unpaid by April 1, they become delinquent, and you have the right to receive notice before any enforcement actions are taken.
- Your property cannot be sold at a tax deed sale for at least two years, giving you time to pay off any delinquent taxes.
- Right to Transparency in Non-Ad Valorem Assessments
- Certain property-related fees, such as those for fire protection, waste disposal, or street lighting, are not based on property value and may be separately assessed.
- You must receive at least 20 days' notice before a public hearing on these fees, and you have the right to attend and submit objections.
- Right to Confidentiality of Certain Property Tax Information
- Any personal information you provide to the property appraiser's office is protected from public disclosure.
- Your property records, however, are available for review if you wish to verify your assessment.
- Right to Request Tax Exemptions and Deferrals
- Homeowners may be eligible for various tax exemptions, such as the homestead exemption.
- Certain individuals, including senior citizens, disabled persons, and veterans, may qualify for additional exemptions.
- If you are unable to pay your property taxes, you may have the right to apply for a tax deferral under specific conditions.
- Right to Correct Errors and Receive Refunds
- If there is a factual error in your property tax assessment, you have the right to request a correction.
- If you overpay your taxes, you may be eligible for a refund, subject to time limits and specific legal conditions.
How to Exercise Your Rights
If you have concerns about your property tax assessment, exemptions, or tax bills, you can contact the appropriate local offices:
- Property Appraiser’s Office – For property valuation and exemption applications.
- Value Adjustment Board (VAB) – To challenge an assessment or exemption denial.
- Tax Collector’s Office – For tax bill payments and delinquency notices.
- Local Taxing Authorities – For public hearings on property tax rates and non-ad valorem assessments.
The property appraiser assesses all property at just value each year on January 1. When you acquire new real property, your assessed value is equal to the just (market) value.
If the property is your homestead and the just value increases, the assessed value in the next year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less. This is true for each following year until you move or make improvements to your home. If the property is not a homestead, the assessed value increase is limited to 10 percent each year.
If your just value declines, your assessed value can increase each year until the assessed value is the same amount as the just value. However, the assessed value can never be more than the just value.
Any assessment for tax purposes that is less than the property's just value is a classified use assessment. An appraiser may assess property at lower than just value if it meets the statutory requirements of one of the following uses.
- Agricultural land, s. 193.461, F.S.
- Pollution control devices, s. 193.621, F.S.
- High-water recharge, s. 193.625, F.S.
- Historic property, s. 193.503, F.S.
- New construction for parents or grandparents, s. 193.703, F.S.
Conservation easements, s. 193.501, F.S.
Tangible Personal Property Tax FAQ
Tangible Personal Property (TPP) includes physical goods, equipment, and assets used in a business or rental property, excluding real estate. Common examples include computers, furniture, tools, machinery, signs, equipment, leasehold improvements, and leased equipment. TPP does not include inventory, household goods, or certain vehicular items.
Anyone who owns TPP on January 1 must file a TPP tax return by April 1 unless the property appraiser has waived the filing requirement. Every new business must file an initial return, and taxpayers who lease, lend, or rent property must also file. If the assessed value of your TPP exceeds $25,000, you must file annually.
To file your TPP return, complete Form DR-405 and submit it to your county property appraiser by April 1. The return must include all taxable property located in the county as of January 1.
Contact the county property appraiser’s office where your TPP is located. They will inform you whether a TPP account number is required and provide guidance on obtaining one.
Yes. If you sold your business before January 1, you must file a return. Indicate the sale date, the buyer’s information, and list the assets that were transferred or retained.
Yes. If your business closed before January 1, contact the county property appraiser’s office to notify them of the closure and request filing instructions for a final return.
You must file a separate return for each business location where you conduct operations. If you own freestanding property at multiple sites that are not business locations, file a single return for all freestanding property.
Yes. All TPP, regardless of condition or depreciation, must be reported.
Yes. Both the lessor and lessee must report leased equipment. Operating leases should be listed under "Leased, Loaned, and Rented Equipment" on Form DR-405.
You must complete sections 1-9 on Form DR-405 and attach an explanation. Most businesses have some assets, such as supplies, leased equipment, or rental furnishings.
If your assessed value is $25,000 or less and you filed an initial return, your filing requirement may be waived in subsequent years. If your value exceeds $25,000, you must file annually.
If your assessed value is $25,000 or less and you filed an initial return, your filing requirement may be waived in subsequent years. If your value exceeds $25,000, you must file annually.
Yes. If you file your TPP return by April 1, you may qualify for a $25,000 exemption on assessed value.
No. The property appraiser requires an initial return to qualify for the exemption, unless the property was previously assessed without a return.
The filing deadline is April 1. Late returns may be subject to penalties and loss of the exemption for that year.
- Failure to file: 25% penalty on total tax
- Late filing: 5% penalty per month (up to 25% total)
- Omitted property: 15% penalty on omitted assets
A business site is a location where a company transacts business, including:
✔ Offices, stores, warehouses, or plants
✔ Locations where goods are shipped or received
✔ Places where employees work
✔ Facilities for manufacturing or service production
A business site does NOT include locations with only freestanding property, such as:
❌ Vending and amusement machines
❌ Propane tanks, billboards
❌ Utility company assets
❌ Leased office equipment (e.g., copiers)
No. A site is only a business location if it meets at least one of these conditions:
✔ Employees work at the site
✔ The business ships or receives goods
✔ Goods or equipment are stored there
✔ The business produces goods or services
Yes. A $25,000 exemption is granted for freestanding equipment, allocated across taxing authorities.
No. Section 196.011, Florida Statutes, requires the property appraiser to assess and record all TPP, even if exempt.
The property appraiser reviews previous returns and may request new filings if the assessed value exceeds $25,000.
Each separately filed return may qualify for its own $25,000 exemption, if the property appraiser determines that each owner has a distinct business interest.
Provide the following details in Excel format:
✔ Physical location of leased equipment
✔ Retail selling price (new)
✔ Type and description of asset
✔ Year acquired
Provide the following details in Excel format:
✔ Physical location
✔ Original cost of equipment
✔ Type (e.g., snack machine, ATM, payphone)
✔ Year acquired
Include this information with your Tangible Personal Property Tax Return:
✔ Total number of units as of January 1
✔ Timeshare weeks owned by the developer
✔ Weeks rented by third-party owners in the prior year
Simply file Form DR-405 (Tangible Personal Property Return) by April 1. The exemption is automatically applied to the first $25,000 of assessed value.
Yes, the exemption applies to all millage rates, including school board millage.
Homestead
The Homestead Exemption is a property tax benefit available to Florida residents who own and permanently reside in their homes as of January 1 of the tax year. This exemption can reduce the taxable value of a primary residence by up to $50,000, potentially saving homeowners approximately $750 per year on property taxes.
Additionally, Florida's Save Our Homes (SOH) cap limits the annual increase in a home's assessed value to no more than 3%, offering long-term tax savings. For 2024, the SOH cap is 3%.
To qualify for the Homestead Exemption, homeowners must apply before March 1, 2025. Missing the deadline means forfeiting the exemption for that year, requiring reapplication the following year.
Eligibility Requirements for Homestead Exemption
To be eligible for the Homestead Exemption, as of January 1, you must:
✔ Have legal or beneficial title to the property, recorded in the county's Official Records
✔ Permanently reside on the property as your primary residence
✔ Be a permanent resident of Florida
✔ Be a U.S. citizen or possess a Permanent Residence Card (Green Card)
Application Deadline
- The deadline to apply for the 2025 tax year is March 3, 2025.
- Under Florida law, failure to apply by March 1 waives your exemption for that year, and you must apply for the next tax year instead.
Filing Options
You can apply for Homestead Exemption in three ways:
✔ Online: The fastest way to apply is through the Property Appraiser’s website.
✔ By Mail
✔In-Person
Required Documents for Homestead Exemption
All property owners applying for Homestead Exemption must provide:
✔ A valid Florida Driver’s License or Florida ID
✔ At least one of the following:
- Florida Vehicle Registration
- Florida Voter Registration Card
- Recorded Declaration of Domicile (from the Orange County Comptroller’s Office)
✔ Social Security Numbers for all owners and their spouses, even if the spouse does not reside on the property
✔ For non-U.S. citizens: A copy of your Permanent Residence Card (Green Card)
Additional Documentation for Special Cases
✔ If the property is held in a trust: A complete copy of the trust agreement must be submitted by mail or in person.
✔ For mobile homes: Proof of ownership is required for both the mobile home and the land. A Real Property application must also be completed.
If your property is held in a trust, you must submit a complete trust agreement to the Property Appraiser's Office for verification. Florida law requires that applicants hold legal or beneficial title to the property.
Yes, but only if you own both the land and the mobile home. You must provide proof of ownership when applying.
Yes, as long as:
✔ Ownership does not change
✔ You continue to reside at the property
✔ You do not change your permanent residency status
However, if you transfer ownership, place the property in a trust, or make any deed changes, you must reapply for the Homestead Exemption.
Homeowners Must Notify the Property Appraiser’s Office If Any of These Occur:
✔ Property ownership changes (e.g., adding or removing someone from the deed)
✔ The property is transferred into a trust or life estate
✔ You move to a new property (Homestead does NOT transfer automatically)
✔ You change your mailing address and fail to update it
✔ You begin renting or using the property as a vacation home
✔ You establish permanent residency elsewhere (changing your driver’s license, voter registration, or school district may disqualify your exemption)
🚨 Failure to report changes could result in the denial of your exemption and a lien on your property under Florida Statute 196.161, with penalties of 50% and 15% annual interest.
No. Even with a Homestead Exemption, homeowners are still responsible for non-ad valorem taxes, which fund services such as:
- Garbage collection
- Street lighting
- Stormwater management
- If you purchased a home with an existing Homestead Exemption, the exemption belongs to the previous owner for the current tax year.
- To continue receiving the exemption, you must apply for your own Homestead Exemption by March 1.
If you inherit a home with an existing Homestead Exemption, and your name is now recorded on the deed, you must apply for your own exemption by March
If you are on active duty and renting your home, update your mailing address and submit your military orders to avoid cancellation of your exemption.
No. The additional $25,000 homestead exemption is automatically applied to eligible properties.
No. The additional $25,000 exemption only applies to properties with an Assessed Value over $50,000.
✔ If your Assessed Value is $50,000 or less, you do not qualify for this additional exemption.
✔ If your Assessed Value is between $50,001 and $74,999, you will receive a partial exemption (proportionally up to $24,999).
✔ If your Assessed Value is $75,000 or higher, you will receive the full additional $25,000 exemption.
No. The additional exemption does not apply to school board millage rates, which make up a significant portion of property taxes.
- The original $25,000 homestead exemption applies to all millage rates.
- The additional $25,000 exemption applies only to non-school millage rates.
- The average tax savings from the additional exemption is estimated to be around $242 per year.
Yes. The additional $25,000 exemption can be combined with other qualifying exemptions such as:
✔ Widow/Widower Exemption
✔ Disability Exemptions
✔ Senior Exemptions
Under Senate Bill 4D (Amendment 1), the additional exemption applies only to the portion of Assessed Value above $50,000:
✔ If your Assessed Value is $50,000 or less, you receive no additional exemption.
✔ If your Assessed Value is between $50,001 and $74,999, you receive a partial exemption (up to $24,999).
✔ If your Assessed Value is $75,000 or more, you receive the full additional $25,000 exemption.
This exemption provides additional tax relief for Florida homeowners but applies only under specific Assessed Value thresholds. If you are unsure about your eligibility, contact your local Property Appraiser’s Office for assistance.
The 10% assessment cap is a property tax limitation that prevents the assessed value of non-homestead properties from increasing by more than 10% per year.
This cap remains in effect as long as:
✔ Ownership does not change
✔ The property is not split or combined
✔ No new construction has occurred
The 10% cap became effective starting with the 2009 tax roll and applies automatically to eligible properties.
No. The cap is automatically applied to qualifying non-homestead properties—you do not need to submit an application.
No. Homestead properties do not qualify for the 10% cap because they already benefit from the 3% Save Our Homes (SOH) assessment cap.
Non-homestead properties are properties without a Homestead Exemption, including:
✔ Second homes
✔ Rental properties
✔ Vacation homes
✔ Vacant land
✔ Commercial properties
Not necessarily. The 10% cap limits the annual increase in assessed value, but other factors, such as:
- Tax rates (millage rates)
- Non-ad valorem assessments (e.g., special district fees)
can still impact the total property tax bill.
Not necessarily. The cap sets a maximum increase of 10%, but:
✔ If market values decrease, your assessment could increase less than 10% or even decrease.
✔ If market values rise sharply, your assessment cannot increase by more than 10% in a single year.
The 10% cap applies to all millage rates, except for School Board millage, which is not covered by this limitation.
No. The 10% cap for non-homestead property remains in effect only for the remainder of the tax year in which the property was purchased.
However, under Florida law, the property must be reassessed at full market value in the year following the sale.
Yes. Under Florida Statute 193.1556, any change in ownership or control—even if not recorded on a deed—requires reassessment.
🚨 Property owners must notify the Property Appraiser’s Office of any ownership or control changes.
🔴 Failure to report changes may result in:
✔ A lien for back taxes
✔ 15% annual interest on unpaid taxes
✔ A 50% penalty on avoided taxes
No. If you sell your home and move, the exemption stays with the original property for the rest of the year. You must reapply for Homestead Exemption on your new home by March 1 of the following year.
Portability allows homeowners to transfer their Save Our Homes (SOH) assessment savings from one Florida home to another, reducing taxable value on a new home.
✔ To apply for portability, file Form DR-501T when applying for Homestead Exemption.
✔ Portability is NOT automatic—you must request it at the time of application.
✔ If you fail to apply, you lose your portability benefit, which could mean higher property taxes on your new home.
Portability reduces the assessed value of your new homestead property, lowering your taxable value and saving you money on property taxes. This benefit is in addition to the Homestead Exemption and allows you to transfer your Save Our Homes (SOH) benefit from a previous homestead to a new one.
To qualify for portability, you must:
✔ First establish your new Homestead Exemption
✔ Have had a Homestead Exemption on January 1 of either the last three preceding years
🚨 Portability is NOT automatic. You must apply at the same time you file for your new Homestead Exemption. To apply, submit Form DR-501T along with your homestead application.
Once you apply for Homestead Exemption and portability, you will receive a receipt for your homestead application. The Property Appraiser’s Office will process your portability application separately.
🚨 If portability is denied, you will receive a denial letter by July 1.
🚨 If your Homestead Exemption is denied, your portability application is also denied automatically.
If your new Homestead Exemption is approved, your portability benefit will be reflected on your Notice of Proposed Property Taxes (TRIM Notice), mailed in August.
✔ The portability amount is listed in the Current Value column under SAVE OUR HOMES BENEFIT.
The maximum portability amount allowed by Florida law is $500,000.
No. Portability is a one-time credit. You only apply for it when you establish a new homestead.
No. However, Florida law requires you to abandon your previous Homestead Exemption, meaning you must give up the exemption on your prior homestead.
🚨 If you still own your previous homestead, its assessed value will be reset to full market value after abandonment.
Yes. If you already own a second home, vacation home, or rental property, and you move into that home as your permanent residence, you can apply for Homestead Exemption and portability.
No. Portability is based on the certified value of your previous homestead as determined by the Property Appraiser as of January 1 of the last year you had homestead.
No. To qualify for portability, the previous homestead must be fully abandoned. If one owner remains, they must reapply for Homestead Exemption and can port back half of the Save Our Homes benefit.
🚨 The remaining owner must agree to give up the exemption and SOH benefit for the portability to transfer.
Portability is divided proportionally based on ownership interest.
✔ If no ownership percentage is listed on the deed or court records, the portability amount is split equally.
✔ If percentages are specified, portability is divided based on those percentages.
Example:
- Owner A has 60% interest, Owner B and Owner C each have 20% interest.
- Portability is distributed proportionally:
- Owner A receives 60%
- Owner B and Owner C each receive 20%
✔ If only one owner applies for homestead, they receive 100% of the portability amount.
Yes, but only if the spouse not listed on the new deed completes Form DR-501TS, designating 100% of the portability to the spouse who is on the deed.
✔ Without Form DR-501TS, portability is automatically split 50/50.
✔ If moving outside Orange County, check with your new county’s Property Appraiser for specific procedures.
✔ If both spouses move to separate properties and abandon their shared homestead, portability is split 50/50.
✔ Former spouses can designate a different split (e.g., 40/60 or 80/20) by completing Form DR-501TS, which must be signed and notarized by both parties.
🚨 Only married couples can designate portability splits. Non-married co-owners must follow proportional ownership rules.
No. The previous homestead must be fully abandoned before portability can transfer.
✔ The spouse remaining at the original homestead can give up the exemption, reapply for homestead, and port back a portion of the Save Our Homes benefit.
✔ A marital settlement agreement cannot override this requirement—the owner must consent to removing the exemption and file Form DR-501TS.
Scenario 1: If Your New Home Has an Equal or Greater Value
✔ Formula:
Previous Homestead Market Value – Assessed Value = Portability Amount
New Homestead Market Value – Portability Amount = New Assessed Value
✔ Example Calculation:
- Previous Homestead Market Value: $300,000
- Previous Homestead Assessed Value: $200,000
- Portability Amount: $100,000
- New Homestead Market Value: $500,000
- New Assessed Value: $500,000 – $100,000 = $400,000
- Subtract Homestead Exemption ($25,000) → Final Taxable Value: $375,000
🚨 Remember: When you apply for a new homestead, the market value and assessed value start equal.
Scenario 2: If Your New Home Has a Lower Value
✔ Formula:
Portability Amount ÷ Previous Homestead Market Value = Portability Percentage
New Homestead Market Value × Portability Percentage = Adjusted Portability Amount
✔ Example Calculation:
- Previous Homestead Market Value: $500,000
- Previous Homestead Assessed Value: $200,000
- Portability Amount: $300,000 (60% savings)
- New Homestead Market Value: $150,000
- Portability Percentage: 60%
- New Portability Amount: $90,000
✔ New Assessed Value:
- $150,000 – $90,000 = $60,000
- Subtract Homestead Exemption ($25,000) → Final Taxable Value: $35,000
🚨 Portability is based on the certified value as of January 1 of the year you apply for homestead.
Save Our Homes
The Save Our Homes (SOH) benefit is a property tax assessment cap established by Amendment 10 to the Florida Constitution in 1992. This amendment limits annual increases in the assessed value of a homestead property to 3% or the rate of inflation (Consumer Price Index - CPI), whichever is lower.
✔ SOH goes into effect the year after a homestead exemption is granted.
✔ This cap prevents sharp tax increases when market values rise, ensuring homeowners are not taxed out of their homes.
Before SOH, taxable value was equal to market value minus the homestead exemption. When property values increased, so did property taxes.
✔ SOH prevents taxable values from rising more than 3% annually, regardless of how much market values increase.
✔ Tax savings accumulate over time, offering long-term financial protection, especially during real estate booms.
Example of SOH Tax Savings
Consider a home purchased for $125,000, with an initial assessed value of $110,000. If property values in the neighborhood increase by 15% per year, the SOH cap limits the assessment increase to 3% annually.
✔ Over five years, the tax savings due to SOH could exceed $3,153, assuming a tax rate of $20 per $1,000 of taxable value.
Only Homestead properties qualify, as long as they remain under the same ownership throughout the calendar year.
Properties that do NOT qualify for the SOH cap include:
Non-homestead properties, such as rental homes, vacation properties, or second homes
Vacant land and non-residential properties
Agricultural properties
Tangible personal property
Homestead properties that have been sold or transferred to a new owner
- Initial Assessment Year
✔ The first year a property receives the homestead exemption, it is assessed at full market value.
- Following Years: SOH Cap Applies
✔ In the second year (and each year after), the assessed value increase is limited to the lower of:
- 3% of the previous year’s assessed value OR
- The percentage increase in the Consumer Price Index (CPI)
🚨 In no case can the assessed value exceed full market value.
- Home Improvements & Additions
✔ New additions or improvements (excluding routine maintenance) are added at full market value after the SOH cap is applied.
✔ When a homestead property is sold or transferred, the assessed value resets to full market value for the new owner.
✔ The new owner must apply for a new homestead exemption, and the Save Our Homes cap starts over the following year.
🚨 Important Reminder:
Even if the previous owner had a Homestead Exemption, the SOH benefit does NOT transfer to the new owner.
✔ The first year’s property taxes for a new owner are based on full market value, minus any exemptions.
Yes. While the SOH cap limits increases in assessed value, the taxable value can still rise if:
✔ Exemptions change (e.g., a homeowner no longer qualifies for additional exemptions)
✔ Local millage rates increase
✔ New non-ad valorem assessments are added
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Trade Centre South, Suite 930A
100 W Cypress Creek Rd. Fort Lauderdale, FL 33309 - [email protected]
