I’ve owned my Florida home for more than 20 years. If you bought a nearly identical house next door, we could have similar floor plans, similar views and very different property tax bills. That’s why, when a buyer sends me a listing in Stuart or Palm City, I want to look at the property taxes before they use the seller’s bill to work out what they can afford. That bill may reflect decades of tax benefits the buyer will have to qualify for on their own.
Three Florida property tax benefits help explain the difference. The homestead exemption reduces the value used to calculate taxes on your permanent home. Save Our Homes limits how quickly its assessed value can rise over time. Portability lets eligible owners take some or all of that accumulated assessment benefit to another Florida homestead. In this episode of Florida Explained, I walk through what each one means when you buy, own or sell a home.
Who qualifies for the Florida homestead exemption, and when do you apply?
For most buyers, the date to remember is January 1. To qualify for the 2027 tax year, you generally need to own the home and use it as your permanent residence on January 1, 2027. The standard deadline to apply with your county property appraiser is March 1, 2027. If you close on January 2, filing before March 1 won’t make you eligible for that tax year. If you did qualify on January 1 but missed the filing deadline, contact the property appraiser promptly about late filing.
It’s worth asking about other exemptions when you apply. Depending on your circumstances, additional benefits may be available to income-qualified seniors, people with qualifying disabilities, veterans, deployed service members, widows and widowers, and certain surviving spouses of service members or first responders. Your county property appraiser can tell you which applications and supporting documents you need.
How much is Florida’s homestead exemption in 2026 and 2027?
The amount depends on the tax year and whether you’re looking at school or non-school property taxes. These dollar amounts reduce the value on which taxes are calculated. Your actual savings depend on the tax rates that apply to your property.
| Tax year | School property taxes | Non-school property taxes |
|---|---|---|
| 2026 | Up to $25,000 of assessed value is exempt. | The first $25,000 is exempt, plus up to $26,411 on assessed value above $50,000. The maximum combined exemption is $51,411 . |
| 2027 | Up to $25,000 of assessed value is exempt. | Under Amendment 3, qualifying homeowners who were permanent Florida residents by December 31, 2026, can receive up to $150,000 . Those who establish Florida residency in 2027 start with up to $50,000 and generally become eligible for the larger amount in their fifth year of receiving homestead exemption. |
Florida voters approved Amendment 3 after I recorded the video. If you’re relocating, December 31, 2026, matters for determining which exemption amount applies. January 1 remains the annual date for establishing that you own and permanently occupy the particular home for which you’re applying. That distinction matters if you already live in Florida and are renting while you look for a house.
Why can a longtime owner pay less property tax than a new neighbor?
Beginning the year after a home first receives the homestead exemption, Save Our Homes generally limits the annual increase in its assessed value to 3% or the annual change in the Consumer Price Index, whichever is lower. If market values rise faster over several years, a sizable gap can develop between the property appraiser’s market value and the assessed value. Tax rates and other charges can still change, so your total tax bill can rise by more than 3%.
Here’s where that matters to a buyer. If you purchase a home in November, the tax bill for that calendar year can still reflect the seller’s homestead benefits. The following January, the property is generally reassessed at its market value, with your own exemptions and any eligible portability benefit taken into account. Before making an offer, I’d estimate the taxes for your first full year of ownership using the Martin County Property Appraiser’s tax estimator.
How much of your Save Our Homes benefit can you take when you move?
Florida portability lets an eligible homeowner transfer up to $500,000 of the difference between the old home’s just value and its assessed value. Just value is the property appraiser’s market value. Assessed value is the figure before exemptions are deducted. Those are the two numbers I’d look up before you sell.
Suppose your home in Stuart has a just value of $700,000 and an assessed value of $450,000. You’ve built up a $250,000 assessment benefit. If your next Florida homestead has an equal or higher just value, you can generally transfer that full amount. If you downsize to a home with a just value of $560,000, the calculation is proportional. The new home is worth 80% as much, so in this example you could transfer $200,000. That would bring the new home’s assessed value to $360,000 before exemptions.
How long do you have to apply for Florida portability?
The three-year window is measured from January 1 of the year you leave your former homestead. For example, if you had homestead on January 1, 2026, and moved out in September 2026, you’d generally have until January 1, 2029, to establish your new Florida homestead. That gives you time to rent or build, but the clock starts earlier than the anniversary of your move.
When you apply in your new county, submit the homestead application (DR-501) and the portability application (DR-501T) together, ordinarily by March 1 of the year you establish the new homestead. Even if you’re moving just a few miles from Stuart to Palm City, you still need to request the transfer. Florida Department of Revenue portability filing guidance
If you’re selling one Treasure Coast home and buying another, I’d have this conversation before we set your moving dates. We can use the values on your current property record to estimate what the next home might cost to own, then have the property appraiser confirm your eligibility. Contact Maria Wells at Lifestyle Realty Group or watch more Florida Explained videos on YouTube.