If you already own a homestead somewhere in Florida and you’re thinking about moving to the beach, there is one tax rule worth understanding before you buy: portability. It can let you carry part of your Save Our Homes savings from your current home to the new one. Here is how it works, in plain English, based on the Pinellas County Property Appraiser’s guidance.
First, what Save Our Homes does
Florida’s constitution limits how much the assessed value of a homestead can rise each year: no more than 3% or the change in the Consumer Price Index, whichever is lower. Over time, the assessed value used for your tax bill can fall well below the property’s market value. That gap is often called your Save Our Homes benefit.
What portability lets you move
- Up to $500,000. You can transfer the difference between the market value and the assessed value of your old homestead, up to $500,000, to a new Florida homestead.
- Upsizing. If the new home’s market value is the same or higher than the old home’s, you can transfer the whole benefit, subject to the $500,000 limit.
- Downsizing. If the new home is worth less, you can transfer a proportion of the benefit, again subject to the limit.
Here is a simple illustration with made-up numbers. Say your old home has a market value of $600,000 and an assessed value of $400,000, so your benefit is $200,000. If you buy a $750,000 condo, you could port the full $200,000. If you buy a $450,000 condo instead, which is 75% of the old home’s value, the Property Appraiser’s proportional method would allow about 75% of the benefit, or $150,000. Your real figures will come from the Property Appraiser.
The time limit
You have three tax years to establish the new homestead, counted from January 1 of the last year you had the homestead exemption on the old home, not from the date you sold it. The Pinellas County Property Appraiser gives this example: if you sell your homestead in any month in 2026, your last qualifying date is January 1, 2026, and you have until January 1, 2029 to qualify a new homestead and port the benefit.
How to apply
- Portability isn’t automatic. You apply for the new homestead exemption and the transfer together, using the Florida Department of Revenue forms DR-501 and DR-501T, or the Property Appraiser’s online application.
- The deadline is March 1 of the year you’re applying for.
- You must own the new home and make it your permanent residence on January 1 of that year.
- If the new home already shows a homestead exemption, it belongs to the previous owner and will be removed, so you still need to apply yourself.
A typical timeline
Here is how it often works for an owner selling a Pinellas homestead and buying on the beach in the same year, using the Property Appraiser’s rules:
- You sell your current homestead during the year. It keeps its exemption for that tax year.
- You buy the new home and move in, making it your permanent residence by January 1 of the following year.
- Between January 1 and March 1 of that following year, you apply for the homestead exemption on the new home and file for portability at the same time.
- The Property Appraiser calculates the transfer and applies it to the new home’s assessment for that tax year.
If you can’t move in by the next January 1, the three tax year window gives you more time, but the clock starts from January 1 of the year you last had the old exemption.
Questions to ask the Property Appraiser
- What is the current Save Our Homes benefit on my homestead?
- If I buy a home of a particular value, roughly how much could transfer?
- Which documents do you need from me and my spouse or co-owner?
- How is the benefit split if co-owners move to different homes?
Why this matters when you shop
Portability can make a real difference to the carrying cost of a beach home, so it’s worth getting an estimate before you set your budget. Ask the Property Appraiser’s office about your figures, and factor the result into your numbers alongside association dues and insurance. Our homestead exemption guide explains the exemption itself, and our closing cost calculator helps with the rest of the budget.
Please note: Laws, tax rules and insurance terms change, so check the details for your situation with a licensed professional, such as a Florida real estate attorney, insurance agent or tax adviser, before you act.
Selling your current Florida home first? Our guide to what it costs to sell in Pinellas County and our home value estimator are good starting points. Buying? Read our buyer’s guide or contact us.
Sources
- Pinellas County Property Appraiser, portability, including the $500,000 limit, upsizing and downsizing, and the three tax year window.
- Florida Department of Revenue, Save Our Homes assessment limitation and portability transfer (PT-112).
- Pinellas County Property Appraiser, Save Our Homes and portability brochure.