Florida Property Tax Guide: Homestead, Portability, and Save Our Homes
How Florida property taxes actually work — assessed value vs. market value, the homestead exemption, the Save Our Homes 3% cap, portability, and why your tax bill jumps after a purchase.
Why Florida property tax is its own subject
Florida has no state income tax, which is one of the primary drivers of inbound migration. The state's structural trade-off is that property tax is the dominant source of local revenue — and the rules around assessment, exemptions, and caps are uniquely consequential.
Buyers, sellers, and investors who don't understand homestead, Save Our Homes, and portability consistently misjudge their carrying costs by thousands of dollars per year.
How a Florida property tax bill is calculated
Three numbers drive the bill:
- Market value: the county appraiser's estimate of what the property would sell for.
- Assessed value: market value minus any caps (Save Our Homes) and exemptions (homestead).
- Millage rate: set by your county, city, school district, and special districts. Total millage in Florida typically runs 14–22 mills (1.4–2.2% of assessed value).
Annual tax = assessed value × total millage. Save Our Homes and homestead can dramatically widen the gap between market and assessed value for long-time owners.
The homestead exemption
If a Florida property is your primary residence as of January 1, you can file for the homestead exemption (deadline: March 1 of that year).
Homestead does three powerful things:
- Removes $50,000 of assessed value from non-school portions of the bill.
- Activates Save Our Homes (3% annual assessment cap).
- Provides creditor protection — your homestead is largely shielded from non-mortgage creditors under the Florida Constitution.
Save Our Homes (SOH) — the most valuable cap in residential real estate
Once homesteaded, your assessed value can rise by no more than the lesser of 3% or the CPI per year — even as market value climbs sharply.
Over 10 years in a fast market, the gap between market and assessed value can reach $200K–$500K. The longer you hold a Florida homestead, the more valuable the cap becomes.
Why your tax bill jumps after you buy
When a homesteaded property sells, the Save Our Homes cap resets to current market value for the new owner. First-year bills are commonly 2–3× the previous owner's.
Example: previous owner bought in 2010, paid taxes on a $180,000 assessed value. You buy in 2026 at market value of $475,000. Your first-year assessed value resets to $475,000, and the bill jumps from ~$3,200 to ~$8,500.
Always ask the listing agent for the most recent tax bill AND a current millage estimate on full market value. Don't underwrite on the prior owner's bill.
Portability
When a Florida homesteader sells and buys another Florida primary residence within 3 years, they can transfer up to $500,000 of accumulated Save Our Homes benefit to the new property.
Portability means the SOH gap doesn't reset to zero when you move — it follows you (capped at $500K). This is one of the most valuable mechanics in Florida residential ownership and is widely under-used.
File the portability application (DR-501T) with your new county appraiser at the same time you file homestead on the new property.
Investment and second-home properties
Non-homesteaded properties don't get SOH. They have a 10% annual assessment cap (the 'non-homestead cap') which is much weaker.
Investors should expect the assessed value to track market value far more aggressively, and to see meaningful annual increases as the property appreciates.
CDDs and special districts
Many newer Florida master-planned communities (Babcock Ranch, Lakewood Ranch, parts of Wesley Chapel, Verandah, etc.) include Community Development District (CDD) bonds that show up as a separate line on the tax bill.
CDDs commonly add $1,500–$5,000/yr depending on the community. Always pull the actual tax record before buying — the marketing material usually doesn't disclose the CDD figure.
Appeals and TRIM notices
Every August, Florida property owners receive a TRIM (Truth in Millage) notice with the proposed assessed value and tax bill. You have a short window (typically 25 days) to file a Value Adjustment Board petition if you believe the assessed value exceeds market value.
Most successful appeals provide 3+ recent comparable sales within 0.5 miles and 6 months that support a lower value. Fee for the petition is typically $15.
Planning takeaways
- Always file homestead by March 1 of the year after closing.
- Always file portability when you move within Florida.
- Always underwrite a purchase using current market value, not the seller's bill.
- Always include CDDs in your total carrying cost.
Build the math, then the conversation
How this plays out locally
Frequently asked
How do I file for homestead exemption?+
Online or in person with your county property appraiser between January 1 and March 1 of the year after you make the home your primary residence. You'll need ID, voter registration, and proof of residency.
Does portability transfer to a more expensive home?+
Yes — you transfer the SOH savings, not the assessed value. The new home gets a market-value assessment minus the portability benefit, up to $500,000.
Can snowbirds homestead in Florida?+
Only if Florida is their primary residence — voter registration, driver's license, and tax filings have to align. Multi-state retirees should consult a CPA before establishing.
Are CDD fees deductible?+
The interest portion of CDD bonds is generally not deductible as property tax. The maintenance portion is treated like an HOA fee. Talk to your CPA for your specific district.
The ADK Real Estate Team builds tools for realtors and the clients they serve — financial intelligence, listing performance, and the reports that win listings.
Win the listing with better reports
Net Sheet, True Payment, Wealth Report, Listing Health, and Seller Update — branded for your business.