If you're buying or selling a home in Tampa Bay, you've probably heard the terms "homestead exemption" and "Save Our Homes" thrown around, and they're often confused for the same thing. They're not. Here's the straight explanation, no jargon.
The Short Version
- Homestead Exemption is a discount on your property tax bill for your primary residence. It does not transfer when you sell. The new owner must file their own.
- Save Our Homes (SOH) is a separate benefit that caps how much your assessed value can rise each year (3% or the Consumer Price Index, whichever is lower). This is where the real long-term savings live.
- When you sell and buy another Florida homestead, you can carry, or "port", your accumulated SOH savings to the new home. Up to $500,000.
What Is the Homestead Exemption?
Florida homeowners who use a property as their permanent residence can apply for a Homestead Exemption, which reduces the taxable value of that home by up to roughly $50,000. It has to be filed with your county Property Appraiser, and you have to qualify as of January 1 of the tax year.
Important: the exemption does not pass to a new owner. If you buy a home that had a homestead exemption under the previous owner, you still have to file your own application.
What Is Save Our Homes?
Save Our Homes is a constitutional amendment Florida voters approved in 1992. Once a home has a homestead exemption, its assessed value cannot increase by more than 3% per year, or the change in the Consumer Price Index, whichever is lower, no matter how much the market value rises.
Over years of ownership, this can create a large gap between a home's market value and its (much lower) assessed value. That gap is your Save Our Homes benefit.
Good to know: even if your home's market value stays flat, your assessed value can still rise by that same 3%/CPI cap. This is called the recapture rule and it catches people off guard on years when they expected a flat tax bill.
What Happens When You Sell
The Save Our Homes cap resets the year after the sale. The new owner's assessed value moves to full market value, minus whatever exemption they qualify for. This can mean a noticeably higher tax bill for the buyer than what the seller was paying, especially on homes owned 10+ years. Buyers should budget for this, not assume the seller's tax bill carries over.
What Happens When You Buy Another Florida Home: Portability
This is the part most people don't know about. If you had a homestead exemption on your previous Florida home, you can transfer, or "port", your accumulated Save Our Homes savings to your next Florida homestead.
- Upsizing (new home's market value is equal to or higher than the old one): the full SOH benefit transfers, up to a cap of $500,000.
- Downsizing (new home's market value is lower): only a percentage of the benefit transfers. The formula is (new home value ÷ old home value) = percentage ported.
Portability Example
You sell a home with a $300,000 market value for a new home valued at $180,000. That's 180,000 ÷ 300,000 = 60% of your SOH benefit transfers to the new home.
Deadlines to Know
- 3-year window: you must establish your new Florida homestead within 3 tax years of abandoning the old one.
- March 1 filing deadline: you must file Form DR-501 (Homestead Exemption) and Form DR-501T (Portability Transfer) with your new county's Property Appraiser by March 1 of the year you want the benefit applied.
- Late filing is possible in some cases through mid-September, but it is not guaranteed and can cost you a full year of savings if missed.
How to File
- Close on the sale of your current homesteaded property.
- Close on your new Florida home.
- File Form DR-501 (homestead exemption application) with your new county's Property Appraiser.
- File Form DR-501T (Transfer of Homestead Assessment Difference) at the same time.
- Submit both by March 1 of the applicable tax year.
- Keep your prior year's tax bill handy in case the county needs the old assessed value for reference.
County Property Appraiser Links
- Hillsborough County Property Appraiser (Tampa, Brandon, Valrico, Riverview, Plant City)
- Pinellas County Property Appraiser (St. Petersburg, Clearwater, Largo)
- Pasco County Property Appraiser (Wesley Chapel, Land O' Lakes, Trinity)
- Manatee County Property Appraiser (Bradenton, Lakewood Ranch)
- Polk County Property Appraiser (Lakeland, Winter Haven)
- Sarasota County Property Appraiser (Sarasota, Venice)
Frequently Asked Questions
Does my homestead exemption transfer to the buyer of my home?
No. The buyer must file their own homestead exemption application.
Can I take my tax savings with me to a new home?
Yes, through portability, up to $500,000 of your accumulated Save Our Homes benefit.
What if I don't buy a new home right away?
You have 3 tax years from the date you abandoned your old homestead to establish a new one and still port the benefit. After that window closes, the benefit is lost.
Does portability work if I move to a different county?
Yes. Portability is a statewide Florida benefit, not limited to staying in the same county.
Is this related to Amendment 3 on the 2026 ballot?
Amendment 3 proposes raising the base non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028. It does not change how Save Our Homes portability works. If it passes, it would apply on top of your ported benefit, not replace it.
How much can I save with portability?
It depends on how long you owned your previous home and how much your market value outpaced the 3% annual cap. Homeowners who've been in their property 10+ years can have $100,000+ in accumulated SOH benefit. Barrett can help you estimate this before you list.
Work With a Tampa Bay REALTOR Who Explains the Numbers
Whether you're selling and moving up, downsizing, or relocating within Florida, understanding your tax picture before you list or make an offer matters. Barrett Henry has 23+ years of experience helping Tampa Bay buyers and sellers navigate exactly this kind of decision.
This guide is for general information only and is not tax or legal advice. Consult your county Property Appraiser or a qualified tax professional for guidance specific to your situation.
Full Video Transcript
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Everyone knows Florida as a low-tax destination, no state income tax and real estate that attracts buyers from all over the country. But if you look at a property listing and budget your monthly payments based on the current owner's property tax bill, you are walking straight into a trap. Come year one, you will get hit with a massive, unexpected payment shock.
The reason so many buyers get caught off guard is that they confuse two completely different Florida laws. They think the homestead exemption and save our homes are the exact same thing. They aren't.
The first layer of protection is the homestead exemption. This is a straightforward discount that reduces the taxable value of your property by up to roughly $50,000. To qualify, the property must be your permanent primary residence as of January 1st of the tax year. But here is the catch. That exemption does not pass to the new owner. If the seller had the exemption, it dies at closing. You start from scratch. You have to proactively file an application with your county property appraiser. The exact paperwork you need is Form DR-501, and you must submit it by March 1st.
The real financial engine of Florida real estate is the Save Our Homes benefit. Once you have your homestead exemption established, the Save Our Homes law legally caps how much your assessed value can increase. It can never go up by more than 3% per year, or the consumer price index, whichever is lower. Over time, that creates a massive gap between market worth and taxable value. That gap is your Save Our Homes benefit.
There is a catch, known as the recapture rule. Even if your home's market value stays perfectly flat, your assessed value will still creep up by 3% until it catches the market value. And when you sell the property, that accumulated cap is destroyed.
If you already own a homestead in Florida and you want to move, you can use a legal mechanism called portability to take that accumulated tax shield with you. You have exactly three tax years from abandoning your prior homestead. If you are upsizing, buying a home with an equal or higher market value, you get 100% portability up to a hard cap of $500,000. But if you are downsizing to a cheaper home, you are only allowed to transfer a specific percentage. Take the value of your new home and divide it by the value of your old home.
Florida's property tax benefits are immense, but they are not automatic. They require precise execution. File Form DR-501 for the homestead exemption and Form DR-501T for portability. The county appraiser must have your paperwork in hand by March 1. If you miss that date, you forfeit the entire year of savings.