Florida’s Homestead Exemption and Save Our Homes (SOH) cap can create meaningful long-term tax savings for primary-resident homeowners. The best part? When you move within Florida, you may be able to carry a portion—or all—of those savings to your next homestead. That transfer is called portability.
Quick refresher: Homestead + Save Our Homes
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Homestead Exemption reduces your taxable value (generally up to $50,000+ for non-school taxes and $25,000 for school taxes; additional smaller exemptions may apply for specific situations).
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Save Our Homes cap limits increases in your assessed value each year to the lower of 3% or inflation (CPI)—for homesteaded property only.
Over time, this cap can create a gap between your home’s just/market value and its assessed value. That gap is your SOH benefit.
What is portability?
Portability lets you transfer your accumulated SOH benefit from your old Florida homestead to your new Florida homestead, reducing the new home’s assessed value and, in turn, your tax bill.
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Moving to a higher-priced home? You can generally transfer the full SOH benefit (up to the statutory maximum).
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Moving to a lower-priced home? You can transfer a proportional share of your SOH benefit, based on the ratio of the new home’s value to the old home’s value.
A simple example
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Your current home’s just value is $900,000; its assessed value is $600,000.
Your SOH benefit = $900,000 − $600,000 = $300,000. -
You buy a new home for $950,000.
With portability, you may reduce the new home’s assessed value by $300,000 (subject to the cap), so you’re taxed as if it were $650,000 instead of $950,000. -
If your new home were less expensive than the old one, you’d transfer a proportionate amount of that $300,000.
Limits, timing, and how to claim it
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Maximum transfer: Up to $500,000 of SOH benefit may be portable to the new homestead (statewide maximum).
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Timing window: You must establish the new homestead within three tax years after you’ve abandoned the prior one.
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Apply to your county property appraiser:
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File for Homestead at your new address (Form DR-501).
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File the portability application (Form DR-501T, “Transfer of Homestead Assessment Difference”).
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Deadline: Typically March 1 of the year you want the exemption/transfer to begin.
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Tip: Your county property appraiser (not the tax collector) handles exemption and portability applications. They can also estimate how portability would affect your new assessed value.
Why portability matters
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Helps prevent a tax “shock” when moving after years of capped assessments
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Encourages long-time Florida residents to right-size without losing accumulated savings
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Can meaningfully lower the first full-year tax bill on your next home
Quick checklist
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Confirm your current SOH benefit (difference between just and assessed value).
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Decide if your next home is more or less expensive—know whether your transfer will be full or proportional.
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Apply by March 1 with DR-501 and DR-501T at your county property appraiser’s office.
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Keep records from your prior homestead (parcel ID, prior assessments).
This article is general information, not legal or tax advice. For guidance specific to your situation, consult your accountant and your county property appraiser.
For more details, see the Florida Department of Revenue’s portability resources and forms (https://floridarevenue.com/property/Documents/pt112.pdf).