— Buying tools
Homestead + Save Our Homes.
One of the biggest reasons people move to Florida — and one of the most misunderstood buyer benefits. Here's how the $50K exemption, the 3% assessment cap, and portability actually work, plus the March 1 filing deadline most new buyers miss.
What the homestead actually gets you
- Standard $50,000 exemption. The first $25,000 applies to all property taxes (including school taxes). The second $25,000 applies to non-school taxes, kicks in on assessed value above $50,000. Effective on your primary residence only.
- Save Our Homes 3% cap. After you homestead, the assessed value can only rise by the lower of 3% or CPI per year — even if the market value doubles. In a hot Florida market this gap (sometimes $100K+) is real tax savings, year after year.
- Portability — keep the cap when you move. Sell your homesteaded Florida home, buy another within 3 tax years, and transfer up to $500,000 of your Save Our Homes savings to the new property. This single line item has saved relocating-within-Florida buyers tens of thousands.
- Creditor protection. Florida homestead has constitutional protection from most creditors — separate from the tax exemption but a meaningful reason the state attracts buyers protecting personal assets.
Worth knowing
When you buy from a long-time owner, your taxes will be higher than what they were paying — sometimes much higher. The Save Our Homes cap was protecting the seller, not the property. Run the “reset” tax estimate before you make an offer, not after.
How to file — the four steps
01
Close + take ownership by January 1
You must own AND occupy the home as your permanent residence on January 1 of the tax year you want the exemption to apply. A December 28 closing gets you in for that year; a January 5 closing pushes you to next year.
02
File with the county appraiser before March 1
Each Florida county has its own property appraiser office (Hillsborough, Pinellas, Orange, etc.). Most accept online filings. The March 1 deadline is statutory — miss it and you wait a full year. I send every buyer a calendar reminder.
03
Provide proof of permanent residency
Typical documents: Florida driver license showing the property address, Florida vehicle registration, voter registration, declaration of domicile, prior tax returns showing FL as home state. Snowbirds need to commit — you cannot homestead in two states.
04
Apply for portability at the same time
If you sold a previously homesteaded Florida home in the last 3 tax years, file Form DR-501T with the new application. The previous county tells the new county what your savings amount was — you do not have to dig it up yourself.
Additional exemptions worth checking
On top of the standard homestead, Florida offers stacking exemptions for specific situations. Most apply at the county level — easy to miss if no one tells you.
- Senior (65+) exemption. Income-limited additional $50K exemption in many counties. Check with your appraiser — limits and rules vary by jurisdiction.
- Veteran exemptions. Disabled veterans, surviving spouses, and active-duty military deployed during the tax year all have additional exemptions. Worth a 10-minute call to your county.
- Widow/widower. Additional $5,000 exemption — small but worth claiming.
- Total + permanent disability. Quadriplegics receive a full exemption from ad valorem taxes. Other disability categories have income-based exemptions.
“The buyers I see save the most aren't the ones with the lowest purchase price — they're the ones who file homestead the year they close and remember to port their cap when they move up.”
— Ben Laube
Moving from another Florida home?
Portability can transfer up to $500K of Save Our Homes savings to your new house. Send me the addresses; I'll show you the math before you list the old place.