Florida Homestead Exemption & Save Our Homes: The Out-of-State Buyer's Guide

If you're moving to Florida from out of state, one of the most valuable - and most misunderstood - benefits you're gaining is the Florida Homestead Exemption and the Save Our Homes assessment cap. Understanding these is worth thousands of dollars a year.

The homestead exemption

If your Florida home is your primary residence on January 1, you can file for a homestead exemption that removes $50,000 of assessed value from most property tax calculations. That alone can save $800-1,100/year on a typical Tampa Bay home.

Save Our Homes - the big one

Once homesteaded, the Save Our Homes cap limits annual increases in your assessed value to 3% or the CPI change, whichever is lower - even if market value rises much faster. Over years, this creates a widening gap between market and assessed value, holding your taxes down while your equity grows. It's a huge long-term advantage.

What this means on resale

When a homesteaded home sells, the cap resets and the new owner's assessment jumps to market value. This is why out-of-state buyers are often shocked by the property tax bill on a home whose seller paid little - the discount didn't transfer. Always underwrite the post-purchase taxes, not the seller's.

How to file

File with your county property appraiser by March 1 of the year following purchase. It's free, and I'll remind you when the time comes.

Message me and I'll estimate the real post-purchase property tax on any home you're considering.