Florida Homestead Exemption Portability: The Save Our Homes Cap and Your Move-Up Math

Florida homestead exemption portability is one of the biggest reasons long-time owners feel free to sell and move. Without it, many people would stay put just to keep a low tax bill. With it, you can carry much of your tax savings to a new Florida home. This guide explains the three pieces that work together: the homestead exemption, the Save Our Homes cap, and portability. It also walks through the math for moving up and moving down, plus the deadlines you cannot miss.

Key takeaways

• The homestead exemption takes $25,000 off the first $50,000 of assessed value. A second exemption applies above $50,000 and is now indexed for inflation, with a 2025 maximum of $25,722 in Palm Beach County.
• Save Our Homes limits yearly increases in a homestead's assessed value to 3% or the change in the CPI, whichever is lower. For 2026, the cap is 2.7%.
• Portability lets you move up to $500,000 of your Save Our Homes benefit to a new Florida homestead.
• When you buy a cheaper home, you carry a proportional share of the benefit, not all of it.
• You must set up the new homestead by January 1 of the third year after leaving the old one, and file by March 1.

How the Florida homestead exemption works

A homestead is the home you own and live in as your permanent residence. As of January 1, you must be a permanent Florida resident, hold title and live in the home. If you qualify, the county removes part of the value before it figures your property tax.

According to the Palm Beach County Property Appraiser, the first $25,000 exemption applies to the first $50,000 of assessed value. A second exemption applies to value above $50,000, but it does not reduce school taxes. Since a 2024 change, that second amount adjusts each year for inflation. For 2025, the maximum was $25,722.

You must apply by March 1. If you miss that date, you lose the exemption for that year. For a wider look at how bills are built, see our guide to how property taxes in Florida work.

The Save Our Homes cap

The exemption is only part of the savings. The bigger part for most long-time owners is the Save Our Homes cap. It limits how much the assessed value of a homestead can go up each year. The limit is 3% or the change in the Consumer Price Index, whichever is lower. For 2026, the Florida Department of Revenue set the cap at 2.7%.

Meanwhile, market value can rise much faster than that. Over the years, a gap opens between what the home is worth (its just value) and what you are taxed on (its assessed value). That gap is your Save Our Homes benefit. After a decade or more, it can be large.

The catch is simple. When you sell, the new owner's assessed value resets to market value. So without portability, you would also start over at full value on your next home.

How Florida homestead exemption portability moves your savings

Portability fixes that problem. It lets you transfer your Save Our Homes benefit from your old homestead to a new one anywhere in Florida. The Property Appraiser's portability page sets out the main rules:

• You can transfer up to $500,000 of benefit.
• You must set up your new homestead on or before January 1 of the third year after you leave the old one.
• The new home must be in Florida. The benefit does not move to another state.
• You must apply, usually with your new homestead application, by March 1.

Portability works between Florida counties too. For example, an owner can sell in Palm Beach County and move the benefit to a new home in Port St. Lucie, in St. Lucie County.

Florida homestead exemption portability when you move up

When your new home's just value is equal to or higher than your old home's, you carry the full benefit, up to $500,000. Here is a simple example with round numbers. These are for illustration only, not figures from any real property.

• Old home just value: $600,000
• Old home assessed value: $350,000
• Save Our Homes benefit: $250,000
• New home price and just value: $800,000
• New home starting assessed value: $800,000 minus $250,000, or $550,000

Then the homestead exemption comes off that assessed value, and the cap applies again from the next year. In other words, you start the new home well below market value, which can save a lot each year.

Florida homestead exemption portability when you downsize

When the new home is worth less, the rule changes. Instead of the full benefit, you carry a share of it. To find the share, divide the new home's just value by the old home's just value. Then multiply that by your old benefit.

Using the same old home, say the new home is worth $400,000. That is two thirds of $600,000. So you carry two thirds of $250,000, or about $166,667. The new assessed value would start at about $233,333. The Property Appraiser has a portability calculator you can use with your own numbers.

What about married couples and joint owners?

Joint ownership adds a few rules. All owners of the old homestead must leave it for the benefit to transfer. Married couples who split up and move to separate homes can divide the benefit, but they must file a form to designate their shares before they apply. Ask the Property Appraiser for the forms that fit your case.

Filing for Florida homestead exemption portability: deadlines and forms

Portability is not automatic. You apply for it along with the new homestead exemption. The state form is Form DR-501T, and many counties also take the request online with the homestead application.

1. Close on the new home and move in by January 1 of the tax year you want the exemption to start.
2. File the homestead application and portability request by March 1 of that year.
3. Keep proof of residency handy, such as a Florida driver license, voter card and vehicle registration.
4. Review your TRIM notice in August to confirm the benefit was applied.

If the Property Appraiser denies your request, you can appeal to the county Value Adjustment Board.

Timing your sale and purchase

Because the dates turn on January 1, closing dates matter. For instance, if you buy in December and move in, you can apply by the next March 1. If you buy in mid-January, you will wait almost a full year longer for the exemption. Therefore, talk with your agent about timing before you set a closing date.

How Florida homestead exemption portability changes your move-up math

For many local sellers, portability decides how much house they can afford. A lower assessed value means a lower monthly escrow payment, which can make a bigger home fit the budget. So run three numbers before you shop:

• Your expected sale proceeds after costs and the loan payoff.
• Your estimated benefit, using the portability calculator.
• The estimated property tax on the new home with the benefit applied.

Also, look at the current market. In August 2026, Palm Beach County single-family homes had a median price of $650,000, while condos and townhouses had a median of $300,000, according to Miami Realtors. Your own home value is the starting point, and a local agent can give you a current estimate.

Common mistakes that cost owners their benefit

Most lost benefits come from a few avoidable slips. First, owners wait too long. If you rent for a while before you buy again, keep an eye on the January 1 deadline in the third year. Second, some owners assume the benefit moves on its own. It does not, so file the request with your new homestead application.

Third, owners sometimes rent out the old home before they sell it. Renting a homestead for more than 30 days a year for 2 years in a row counts as abandoning it, which can change your dates. Finally, couples sometimes forget that every owner of the old home must leave it. If you are unsure about any of these points, call the Property Appraiser before you close, not after.

Amendment 3 on the November 2026 ballot

One change is pending. Amendment 3 (HJR 1-F) is on the November 2026 ballot and needs 60% of the vote to pass. If voters approve it, the homestead exemption for non-school taxes would rise to $150,000 on January 1, 2027 and to $250,000 on January 1, 2028. It is not yet clear how it would work alongside portability, so check with the Property Appraiser before you count on it.

Frequently asked questions

How long do I have to use Florida homestead exemption portability?

You must set up the new homestead on or before January 1 of the third year after you leave the old one. Then you apply by March 1 of the year the new exemption starts.

Can I transfer my homestead benefit to another state?

No. Portability only works between homes in Florida. It does, however, work between Florida counties.

What is the most I can transfer?

Up to $500,000 of Save Our Homes benefit. If you buy a less expensive home, you carry a proportional share.

Is portability automatic when I file for homestead?

No. You must ask for it, using Form DR-501T or your county's online filing, by March 1.

Does portability lower my school taxes too?

Yes. The transferred benefit lowers your assessed value, which is the base for all property taxes. The second $25,000 style exemption is the part that does not apply to school taxes.

Sources

• Palm Beach County Property Appraiser, homestead exemption
• Palm Beach County Property Appraiser, portability
• Palm Beach County Property Appraiser, portability calculator
• Florida Department of Revenue, Form DR-501T
• Florida Department of Revenue, Save Our Homes assessment limitation
• Florida Statutes, s. 193.155
• CBS Miami, homestead exemption on the November 2026 ballot
• Miami Realtors, Palm Beach County August 2026 market report

This article is general information, not legal, tax or financial advice. Exemption amounts and rules change, so confirm your situation with your county Property Appraiser or a licensed tax professional.

Planning to sell and move up, or move down? Start with a free Pure Equity home value report, so you know your likely sale price and can estimate your portability benefit. When you are ready to buy, our agents can help you find the next home and time the closing around January 1. Get your free home value report or talk with our team.