🏠 Florida Homestead Exemption & Save Our Homes: What You Need to Know

If you're planning to buy a home in Florida — or already have — understanding the Homestead Exemption and Save Our Homes protections could save you thousands in property taxes.

But this powerful tax benefit can also cause unexpected surprises for buyers who don't understand how it works. Here’s everything you need to know to make smart financial decisions when buying or selling a Florida home.

What Is the Florida Homestead Exemption?

The Florida Homestead Exemption is a property tax break available to homeowners who make their property their primary residence.

Here’s how it works:

• You get up to $50,000 off the assessed value of your home.

• The first $25,000 applies to all taxing authorities, including schools.

• The second $25,000 applies only to non-school taxes.

This can reduce your tax bill by hundreds or even thousands each year. It’s one of the biggest benefits of owning in Florida.

To qualify, you must:

• Own and occupy the home as your permanent residence as of January 1st.

• File for the exemption by March 1st of the qualifying year.

• Be a Florida resident and provide proof (driver’s license, voter registration, vehicle registration).

What Is “Save Our Homes”?

While the Homestead Exemption helps reduce taxes, the Save Our Homes (SOH) provision keeps them from spiking year after year.

Here’s what SOH does:

• It caps increases in assessed value at 3% per year, or the rate of inflation (whichever is less).

• This protection applies only to homesteaded properties.

In Florida’s hot real estate market, that cap is crucial. Without it, your property taxes could skyrocket with every market surge.

Why New Homeowners Get Surprised by Higher Taxes

This is where many buyers get blindsided.

Let’s say you’re buying a home from someone who’s lived there for 20 years. Their assessed value might be far lower than market value, and their taxes could be $2,000 per year.

But when you buy it, the county resets the assessed value to full market value, and the 3% cap starts over.

Your tax bill might jump to $5,000 or more — even though nothing about the home changed.

Moral of the story: Don’t assume your taxes will be the same as the seller’s.

What Is Portability?

Portability is Florida’s way of allowing you to take your Save Our Homes tax savings with you when you move to a new primary residence.

You can transfer up to $500,000 in accumulated SOH savings to your new homestead, which lowers your new home's starting taxable value.

Here are the rules:

• You must apply for portability within 3 years of abandoning the previous homestead.

• The homes must be in Florida.

• You must file the portability application along with your Homestead Exemption.

This can make a huge difference in your long-term tax savings — especially if you’re moving from a home that’s been capped for many years.

Additional Homestead Exemptions for Seniors and the Disabled

Florida offers additional exemptions for homeowners in certain categories. If you qualify, you can lower your taxes even further.

For Seniors Over 65:

• Must meet annual household income limits (adjusted yearly).

• Some counties offer up to $50,000 in additional exemption.

For the Disabled:

• A totally and permanently disabled person may qualify for full exemption.

• Partially disabled individuals may qualify for partial exemptions.

For Veterans:

• Disabled veterans may receive additional exemptions based on service-related disability levels.

• Surviving spouses of veterans or first responders may qualify as well.

Be sure to check with your local Property Appraiser to see what local exemptions are available.

Important Filing Deadlines

Timing matters. Here are key dates to keep in mind:

• January 1st – You must reside in the home for the current tax year.

• March 1st – Filing deadline for new Homestead Exemption and Portability applications.

• Within 3 years – Deadline to use portability from a previous homestead.

You only need to file once — unless your ownership or primary residency status changes.

What to Do Before You Buy a Home

Before you make an offer on a home, ask your Realtor or Title Agent to help you estimate your future taxes — not just look at the seller’s bill.

Use the county tax estimator and consider:

• Will the assessed value reset at purchase?

• Is the property currently homesteaded?

• Will I qualify for portability?

Final Thoughts

Homestead Exemption and Save Our Homes are incredible tools for reducing property taxes and keeping long-term affordability in check. But if you don’t understand how they work, they can lead to unexpected tax bills and missed savings opportunities.

If you’re buying or selling a home in Tampa Bay, I’d be happy to walk you through how these exemptions will affect your move.

📥 Have questions about the Homestead Exemption or need an estimate of your future taxes?
Request help here!

📞 Have questions? Reach out anytime at 727-251-4106 or email Sean@TampaBayRealtorSean.com.