Understanding Florida’s Homestead Exemption Portability: What Homeowners Need to Know

If you're a Florida homeowner or planning to become one, you've probably heard about the Homestead Exemption—a valuable tax benefit that reduces the taxable value of your primary residence. But did you know that Florida also allows you to transfer those savings when you move to a new home within the state? This is called homestead exemption portability, and it can significantly reduce your property taxes on your next home.

Here’s a breakdown of what it is, how it works, and why it matters.

What Is Homestead Exemption Portability?

Portability allows Florida homeowners to transfer up to $500,000 of the "Save Our Homes" benefit from a previous homestead to a new one. The Save Our Homes cap limits how much your assessed property value can increase each year (currently capped at 3%), helping longtime homeowners avoid steep tax hikes.

When you sell your home and buy another in Florida, you don’t have to lose those savings. Instead, you can "port" that benefit to your new residence, lowering its assessed value—and your future property taxes.

Why Is Portability Important?

Many homeowners hesitate to move because they’re afraid of higher taxes based on their new home's market value. Portability helps offset this tax increase by allowing you to carry over your tax savings.

Example:
If your original home’s market value is $400,000 but it’s only assessed at $300,000 due to Save Our Homes, you’ve built up a $100,000 portability benefit. If you buy a new home for $500,000, you can apply that $100,000 difference to reduce the new assessed value to $400,000—lowering your taxes.

Key Rules and Requirements

Here are a few things to keep in mind:

• You must establish a new homestead within 3 years of abandoning the previous one.

• You must apply for portability through your local property appraiser’s office.

• Portability only applies to homestead properties (primary residences).

• The maximum portability benefit you can transfer is $500,000.

How to Apply

1. File a new Homestead Exemption application for your new residence.

2. Submit a Transfer of Homestead Assessment Difference (Form DR-501T).

3. Provide documentation and deadlines as required by your county property appraiser.

Final Thoughts

Florida’s Homestead Exemption Portability is a powerful tool for homeowners looking to move without giving up their hard-earned tax benefits. Whether you’re upsizing, downsizing, or relocating within the state, understanding how to use portability could save you thousands over the years.

If you're considering buying or selling a home in Florida, working with a knowledgeable real estate professional and contacting your local property appraiser's office can help you navigate this process with confidence.

For additional information or questions please contact the Flagler County Property Appraiser's Office 386-313-4150.

Here is the link to their website: Flagler County Property Appraiser

*"The information provided on this page is for general informational purposes only. It is not intended as advice, and you should not rely on it for making decisions."