Don’t Miss Out on Florida’s Magical Property Tax Savings
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Florida’s “Save Our Homes” Portability: A CFP® Explains Why It Matters to Your Financial Plan
If you own (or plan to own) a primary residence in Florida, you need to understand Save Our Homes (SOH) and, more importantly, its portability benefit. Used correctly, it can save you tens or even hundreds of thousands of dollars over your lifetime.
As a Certified Financial Planner™ professional in Florida, I love to help clients think beyond investments and retirement accounts. One of the most overlooked—but incredibly valuable—parts of a Florida resident’s financial plan is property tax strategy. Let’s break it down in plain English.
What Is Florida’s Save Our Homes (SOH) Benefit?
Florida’s Save Our Homes amendment limits how much the assessed value of your primary residence (homestead) can increase each year.
The annual increase is capped at 3% or the rate of inflation, whichever is lower.
This cap applies even if the market value skyrockets.
Over time, this creates a gap between:
Market value (what your home could sell for), and
Assessed value (what your property taxes are based on).
That gap is where the magic happens.
What Does “Portability” Mean?
Portability allows you to transfer (or “port”) the tax savings you’ve built up under Save Our Homes from one Florida homestead to another.
It’s a tax asset you carry with you when you move.
The basics:
You can transfer up to $500,000 of accumulated SOH benefit.
Both homes must be homesteaded in Florida.
You must establish the new homestead within 3 years of leaving the old one. But don’t wait. Do it right away to both gain the tax savings on your new place right away, and limit the (now lower) assessment increases to 3% on your new place.
A Real-World Example
Let’s say:
You bought your home years ago for $300,000
Today, it’s market value is $700,000
Because you established homestead, the increases were limited and your assessed taxable value is only $400,000 from the county property appraiser
That $300,000 difference is your Save Our Homes benefit.
Now you sell and buy a new home for $800,000.
Thanks to portability, your new home’s assessed value could be reduced by up to $300,000, potentially dropping it to $500,000 instead of $800,000.
Result: Significantly lower property taxes every year.
From a financial planning perspective, that’s a permanent reduction in fixed expenses—something we love.
Why Planners Care About SOH Portability
When looking at a client’s plan, I’m focused on cash flow, taxes, and long-term sustainability. Portability impacts all three.
1. Retirement Planning
Lower property taxes mean:
Lower required retirement income
Less pressure on investment withdrawals
More flexibility about your retirement date
2. Downsizing or Upsizing Decisions
Clients often assume moving will automatically raise their taxes. With portability, that’s not always true—and sometimes it’s dramatically false. If you downsize, you can significantly reduce your assessed value from what you paid.
3. Legacy & Estate Considerations
Florida reassesses property at death for heirs. Knowing when portability ends—and how it fits into broader estate plans—is critical.
Common Mistakes I See Clients Make
Even very smart homeowners get tripped up here.
❌ Missing the homestead filing deadline on the new home
❌ Waiting too long and losing the 3-year portability window
❌ Assuming their realtor or lender handled the paperwork
❌ Not coordinating the move with broader tax or retirement planning
Portability is not automatic. You must apply for it.
How to Protect This Benefit
If you’re planning a move, here’s my checklist for you:
Check your property’s assessment tax bill to see if you have a benefit. This can be found online on your county’s property appraiser website. This is the amount to transfer (up to $500k) and deduct from your new property’s assessment. Look for “SOH Cap” or something similar on the property values section.
File for homestead on your new property in your new county. This is Form DR-501. Florida’s deadline is March 1st for the current tax role. If you have not yet applied for homestead on your new property, do it TODAY!
File for the “Transfer of Homestead Assessment Difference” Form DR-501T for portability on the new property. The deadline for this for the current tax bill year is also March 1st.
Model future property taxes as part of your long-term plan
This is one of those areas where a little planning upfront can pay off for decades.
Final Thoughts from a CFP®
Florida’s Save Our Homes portability benefit is one of the most powerful—and misunderstood—tax advantages available to homeowners. It’s more than just a tax perk; it’s a strategic financial planning tool that directly affects:
Retirement readiness
Lifestyle flexibility
Long-term tax efficiency
If you’re thinking about buying, selling, or relocating your primary residence within Florida, make sure this benefit is part of the conversation—not an afterthought.
Your future self (and your tax bill) will thank you.
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Contact Information Prosperity Financial Planning LLC, Celebration, Florida. elizabeth@prosperityfinancialplanning.com