If you own a home in Florida, you’ve probably heard someone say, “Don't worry, you can take your taxes with you when you move!”
Not exactly.
Florida’s portability doesn’t move your tax bill.
It moves your Save Our Homes (SOH) benefit — the difference between your home’s market value and its capped assessed value.
And here’s the piece most people don’t realize:
Portability works whether you're upsizing or downsizing.
You can transfer up to $500,000 of your accumulated SOH benefit to your next Florida homestead.
Let’s break this down clearly, simply, and with an example.
⭐ What Is the Save Our Homes (SOH) Benefit?
Florida’s SOH cap limits how much your assessed value can increase each year — 3% max, or the CPI, whichever is lower.
Over time, your home’s assessed value stays low while the market value rises.
The difference between the two is your SOH benefit, and it’s this amount you can transfer (up to $500,000) to reduce the starting assessed value of your next home.
❌ What People Think Portability Is
…and what it actually is.
Myth 1: “I take my tax bill with me to the next house.”
Reality:
You transfer your discount, not your tax bill.
Your new home gets a reduced starting assessed value, and taxes are recalculated from there.
Myth 2: “Portability only helps when you buy a more expensive home.”
Reality:
Portability works for both:
- Upsizing: You can transfer the full SOH benefit (up to $500,000).
- Downsizing: You transfer a percentage of the benefit based on how much value was sheltered in your previous home.
Myth 3: “Portability happens automatically.”
Reality:
Nope. You must apply for it. Every time.
Myth 4: “I can use portability whenever I move.”
Reality:
There is a strict time window.
You generally have three tax years after abandoning the prior homestead to use portability — and if you miss it, the benefit is gone.
⭐ So How Does Portability Actually Work?
Here’s the simplest example possible.
Old Home (Homestead #1)
- Market Value: $500,000
- Assessed Value: $300,000
- SOH Benefit: $200,000
That $200,000 is the amount you can potentially transfer.
New Home (Homestead #2)
- Market Value: $400,000
This is a downsize, so you transfer a percentage of the benefit.
Step 1: Calculate the Old Home's “Discount Percentage”
$200,000 SOH benefit ÷ $500,000 market value = 40%
Step 2: Apply the Percentage to the New Home
40% of $400,000 = $160,000 portable amount
Step 3: Determine the New Assessed Value
$400,000 (market value)
– $160,000 (portable benefit)
= $240,000 assessed value
This is the assessed value your taxes will be based on (before homestead exemption).
That’s portability — not moving your tax bill, but moving your savings.
⭐ How to Apply for Portability (IMPORTANT!)
Portability does NOT happen automatically.
You must file:
1️⃣ Homestead Exemption Application
2️⃣ Transfer of Homestead Assessment Difference (Form DR-501T)
Both must be filed with the property appraiser in the county where your new home is located.
📅 Deadline:
March 1 of the year you want the portability applied.
⏳ Time Limit:
You must establish your new homestead within three tax years after abandoning the previous one.
If you don’t apply within the window, you lose the benefit.
⭐ Resources Homeowners Can Tap Into
✔ Miami-Dade County Property Appraiser
For Coral Gables or Miami-Dade homeowners:
👉 https://www.miamidade.gov/pa/home.page
✔ Florida Department of Revenue
Official forms, guidance, and portability documentation:
👉 Property Tax Forms (includes DR-501 & DR-501T):
https://floridarevenue.com/property/Pages/Forms.aspx
FAQ on transferring homestead benefits:
👉 https://floridarevenue.com/faq/Pages/FAQDetails.aspx?FAQID=1641&IsDlg=1
✔ Your Local Real Estate Resource (Me!);plkjnh
⭐ Final Thoughts
Portability is one of Florida’s biggest financial advantages for homeowners — yet also one of the most misunderstood.
Remember:
You don’t move your tax bill.
You move the discount you’ve built up over time.
Whether you're upsizing or downsizing, knowing how to use portability can save you thousands per year in property taxes — as long as you apply correctly and on time.
If you’d like help running your numbers, I’m only an email away: [email protected]
