Glossary · Property Tax

Save Our Homes

Florida Real Estate Glossary entry. Definition, examples, and how this term applies to NE Florida transactions.

← All glossary terms
Definition
Florida's Save Our Homes amendment caps annual increases in the assessed value of homesteaded primary residences at 3% or the rate of inflation, whichever is lower. The cap is preserved as long as the homeowner owns and occupies the home. When the property is sold, the cap resets and the new owner starts at full market value for tax purposes.

How it works

Florida voters passed the Save Our Homes constitutional amendment in 1992. It limits the annual increase in assessed value of a homesteaded primary residence to 3% or the inflation rate, whichever is lower. The cap applies only to homesteaded properties (your primary residence) and only after the first full year of ownership. Non-homesteaded properties (second homes, rentals, investment properties) get no protection and can be reassessed at full market value each year.

Why it matters at purchase

When you buy a Florida home, the seller's existing Save Our Homes protection does not transfer to you. The cap resets, and you begin paying property tax on the home's full market value. A long-time owner of a $400K home may be paying tax on an assessed value of $250K. You'll start at $400K. This is the single biggest reason new buyers' year-1 tax bills exceed the seller's previous bill by 30-60% or more.

Example

A Mandarin homeowner bought in 2015 for $225,000. Twenty-five years later the home is worth $480,000 at market. Save Our Homes capped the annual assessment growth, so the homeowner's assessed value is $327,000 (about 32% below market). They pay roughly $3,860 per year in property tax. If you buy that same home in 2026 for $480,000, your assessed value reverts to $480,000. Your year-1 tax bill is approximately $5,665. You pay $1,800 more per year than the seller did for the identical home.

Portability

Florida homeowners moving from one homesteaded property to another can transfer up to $500,000 of accumulated Save Our Homes benefit. This is called portability. The benefit transfers within 3 years of the sale of the prior homesteaded property. Out-of-state buyers do not benefit from portability because they have no prior Florida homesteaded property to port from.

Filing requirements

To establish a new homestead and start accumulating Save Our Homes protection, file a homestead exemption application with your county property appraiser by March 1 of the year following purchase. The exemption itself shaves $50,000 off the assessed value for tax purposes. Save Our Homes protection applies automatically once homestead is granted, and accumulates each year you continue to own and occupy the property.

Common questions.

How much does Save Our Homes save Florida homeowners?
Long-tenured Florida homeowners often pay 25-50% less property tax than they would without Save Our Homes protection. On a home appreciated from $225K to $480K over 25 years, Save Our Homes can save roughly $1,800-$2,400 per year compared to taxes on full market value.
Does Save Our Homes apply to rental properties?
No. Save Our Homes only protects homesteaded primary residences. Non-homesteaded properties (second homes, rental properties, vacation homes, investment properties) can be reassessed at full market value annually and receive no cap protection.
Does Save Our Homes transfer to the buyer when a home is sold?
No. When a Florida home is sold, the Save Our Homes cap resets and the new owner begins paying property tax on the home's full market value. This is the single biggest reason new buyers' year-1 tax bills substantially exceed the seller's previous bill.
How do I qualify for Save Our Homes?
You qualify automatically once your homestead exemption is approved. To establish homestead, you must own and occupy the property as your primary residence and file an application with your county property appraiser by March 1 of the year following purchase. There is no separate Save Our Homes application.
Can I transfer my Save Our Homes savings to a new home?
Yes, within Florida. Portability allows you to transfer up to $500,000 of accumulated Save Our Homes benefit from your prior Florida homesteaded property to a new Florida primary residence within 3 years of the prior home's sale. Portability does not apply to out-of-state movers, second homes, or investment properties.
Related terms

Have a question about a Florida real estate transaction?

Talk to Jon or Brittany directly. We'll answer specific questions or connect you with the right Momentum agent.

Talk to founders →