Selling Your Florida Homestead: Save Our Homes, Portability and What Changes When You Sell
Your homestead exemption and Save Our Homes cap may be worth thousands of dollars a year. Here is what happens to them when you sell, how portability lets you carry the savings to your next Florida home, and the deadlines that decide whether you keep them.
For long-time Florida homeowners, the property tax savings attached to a homestead can be one of the largest financial factors in deciding whether, when and where to move. Many Southwest Florida owners who bought years ago have an assessed value far below their home’s market value, because the Save Our Homes amendment has limited how fast their assessment could rise. When you sell, that gap does not simply disappear. Florida’s portability rules let you carry much of it with you, as long as you buy another Florida homestead and file on time.
This guide explains how the homestead exemption and Save Our Homes cap work, what happens in the year you sell, how portability is calculated when you move up or move down, the deadlines that trip people up, special situations like divorce, renting before selling and inherited homesteads, and what the property tax amendment on Florida’s November 3, 2026 ballot would and would not change. Tax rules can be detailed and they change, so confirm your numbers with your county property appraiser, and talk to a Florida attorney or CPA about your specific situation. This is general information, not legal or tax advice.
Close when your move works
Need to stay through year-end or line up your next home first? We can set a closing date that fits your homestead and portability timing.
Your exemption stays yours
Selling to a cash buyer does not affect portability. The Save Our Homes benefit follows you, not the house, as long as you file for it.
No repairs before you go
Downsizing from a long-held home often means dated systems. We buy as-is, so you can put your energy into the move.
Clean, clear closing paperwork
A Florida title company handles the closing and the closing statement shows prorated taxes line by line for your records.
How do the Florida homestead exemption and Save Our Homes cap work?
Two separate benefits usually travel together, and it helps to keep them apart.
The homestead exemption
If you own a Florida home and make it your permanent residence as of January 1, you can apply for a homestead exemption that removes part of your assessed value from taxation. The first $25,000 is exempt from all property taxes, including school taxes. An additional exemption applies to non-school taxes on assessed value above $50,000, and since 2025 that second amount is adjusted for inflation. The Pinellas County Property Appraiser lists the combined 2026 maximum at $51,411: $25,000 for all millages plus $26,411 for non-school millages.
The Save Our Homes assessment cap
Once a home receives the homestead exemption, the Save Our Homes provision of the Florida Constitution limits annual increases in its assessed value to 3% or the change in the Consumer Price Index, whichever is lower. The cap starts the year after the exemption is first granted. Over years of rising market values, it creates a gap between your home’s market (just) value and its capped assessed value. That gap is often called your Save Our Homes benefit, differential or adjustment.
Why the gap matters when you sell
Imagine a home whose market value is $450,000 but whose capped assessed value is $250,000. The owner is taxed as if the home were worth $250,000, minus the homestead exemption. A buyer will not inherit that assessment. When ownership changes, Florida law generally requires the property to be reassessed at market value as of the next January 1. That is why sellers keep their savings only through portability, and why buyers are warned not to assume the seller’s tax bill.
Other exemptions you may have
Some owners also receive additional exemptions, such as certain senior, disability, veteran or surviving spouse exemptions, which have their own rules and income or service requirements. These generally do not transfer automatically. You will need to apply for them again on a new home if you still qualify.
What happens to your exemption in the year you sell?
Florida determines homestead status as of January 1 each year. If you owned the home and it was your permanent residence on January 1, your exemption and capped assessment generally apply for that entire tax year, even if you sell in March or October.
- Property tax proration. At closing, the title company prorates the current year’s taxes between you and the buyer, typically based on the current bill or an estimate when the new bill has not been issued. Because Florida taxes are paid in arrears, the seller usually gives the buyer a credit for the part of the year the seller owned the home. Our guide to what it costs to sell in Cape Coral and Fort Myers shows where this appears on a closing statement.
- The buyer’s reassessment. The following January 1, the property appraiser resets the assessment to market value for the new owner. The buyer’s tax bill will often be noticeably higher than yours, especially for long-held homes.
- The disclosure buyers receive. Section 689.261 of the Florida Statutes requires that a prospective buyer of residential property receive a property tax disclosure summary at or before signing the contract. In substance, it warns buyers not to rely on the seller’s current taxes, because a change in ownership or improvements can trigger a reassessment.
- Tell the appraiser when you no longer qualify. If you move out and stop using the home as your permanent residence before January 1 of a year in which you still own it, you generally are not entitled to the exemption for that year. Owners are expected to notify the property appraiser when they no longer qualify, and improperly claimed exemptions can be back-assessed with penalties and interest.
Timing your closing around January 1 can therefore matter. Selling in December rather than January does not change your current-year exemption, but moving out of a home you still own on January 1 can.
How does Florida homestead portability work?
Portability lets you transfer all or part of your Save Our Homes benefit from your old Florida homestead to a new one, up to $500,000. It applies only between Florida homesteads; it cannot be used for a home in another state, and it does not apply to second homes, rentals or other non-homestead property. County property appraisers, such as the Seminole County Property Appraiser’s portability page, publish worked examples like the ones below.
Moving up: buying a home with a higher market value
If your new home’s market value is equal to or higher than your old home’s, you can generally transfer your entire Save Our Homes benefit, up to the $500,000 cap. The benefit is subtracted from the new home’s market value to set its starting assessed value.
Moving down: buying a home with a lower market value
If the new home is worth less, you transfer a proportional share. The share equals your old benefit as a percentage of the old home’s market value, applied to the new home’s market value.
| Illustration (hypothetical numbers) | Moving up | Moving down |
|---|---|---|
| Old home market value | $400,000 | $400,000 |
| Old home capped assessed value | $300,000 | $300,000 |
| Save Our Homes benefit (difference) | $100,000 | $100,000 (25% of market value) |
| New home market value | $500,000 | $250,000 |
| Benefit transferred | $100,000 (full amount) | $62,500 (25% of $250,000) |
| New home starting assessed value | $400,000 | $187,500 |
The homestead exemption is then applied to the new assessed value, and the Save Our Homes cap begins again from that starting point. These figures are for illustration only. Your property appraiser calculates the actual transfer based on the official values on the tax roll.
Joint owners and spouses
When more than one owner held the old homestead, the benefit is generally divided among the owners who establish new homesteads. Appraiser guidance notes that all owners must leave the old homestead before it can be ported; if a co-owner keeps living there and keeps the exemption, portability may not be available or may be reduced. For divorcing spouses, the benefit is generally split equally unless the final judgment provides otherwise. If you are going through a divorce, see our page on selling a house during divorce and coordinate with your attorney.
What deadlines decide whether you keep your savings?
- The three-year window. You must establish your new Florida homestead within three years of January 1 of the year you abandoned the old one. That clock starts on January 1, not on your closing date. If you move out of your homestead in 2026, you generally need to qualify the new home for homestead no later than the January 1, 2029 assessment date. Confirm the exact date with your property appraiser.
- The March 1 filing deadline. Homestead applications for a tax year are generally due by March 1 of that year. Portability is requested on Florida Department of Revenue Form DR-501T, filed along with the homestead application for the new home. Late filing may be possible in limited circumstances, but do not count on it.
- The January 1 residency date. To qualify a new home for a given year, you must own it and make it your permanent residence by January 1 of that year.
Missing the window is costly. If you sell in early 2026, rent for two or three years while you decide where to land and then buy too late, the benefit you built over many years is gone. If you are relocating within Florida, put these dates on your calendar the day you sign a contract. Our relocation page covers selling on a moving schedule.
What about renting first, owning two homes, divorce or inheritance?
Renting your homestead before you sell
Under section 196.061 of the Florida Statutes, renting all or substantially all of a homestead dwelling generally counts as abandoning homestead status. The statute includes a limited timing exception: if the rental begins after January 1, the current year’s exemption still applies, and abandonment is triggered by renting for more than 30 days per calendar year for two consecutive years. Military members have separate protections. Turning your homestead into a rental while you wait for a better market can therefore start the portability clock and end your exemption. If you already did that and are now a reluctant landlord, see our page for tired landlords.
Buying the new home before selling the old one
You can only have one homestead exemption. Many sellers buy first and move, then sell the old home later. That works, but the old home generally loses its exemption for any year you do not live there on January 1, and its taxes rise accordingly while it sits. A quick sale of the old home can limit that cost. You can still port the benefit from the old home to the new one, subject to the three-year window and the filing rules.
Spouses and the homestead deed
Florida’s Constitution includes special protections for homestead property. In general, if you are married, your spouse must join in signing the deed to sell a homestead, even if your spouse is not on the title. Title companies routinely ask about marital status for this reason. A Florida real estate attorney can explain how this applies to you.
Inherited homesteads
When an owner dies, the Save Our Homes cap generally ends and the home is reassessed for the new owners, subject to limited exceptions, such as certain transfers to a surviving spouse. Heirs cannot port the deceased owner’s benefit to their own homes. Florida’s homestead rules also restrict how homestead property can be left by will when a spouse or minor child survives, and creditors’ claims are treated differently. Those questions belong with a probate attorney. Our step-by-step guide to selling an inherited Florida house and the inherited and probate property page cover the selling side.
Capital gains are a separate question
Property tax portability has nothing to do with federal income tax on your sale. Whether you owe capital gains tax depends on federal rules such as the home sale exclusion; see our overview of capital gains when selling a Florida home and ask a CPA.
What would Amendment 3 on the November 2026 ballot change?
Florida voters will decide a property tax amendment, listed as Amendment 3, on November 3, 2026. Like all constitutional amendments, it needs at least 60% voter approval. This is a pending proposal, not current law. According to the Pinellas County Property Appraiser’s Amendment 3 FAQ, if it passes it would:
- Take effect January 1, 2027, first showing up on August 2027 TRIM notices and November 2027 tax bills.
- Keep the first $25,000 exemption from school taxes as it is today.
- Raise the homestead exemption from non-school taxes to up to $150,000 starting in 2027 and up to $250,000 starting in 2028, with inflation adjustments from 2029.
- Apply the larger amounts to owners who are permanent Florida residents as of December 31, 2026; new residents starting in 2027 would begin at $50,000 and phase in the larger exemption later.
- Leave the Save Our Homes 3%-or-CPI cap in place and leave portability rules unchanged.
- Lower the annual assessment cap on non-homestead property from 10% to 5% for non-school taxes.
Florida Realtors reported in August 2026 that a Tallahassee judge found parts of the Legislature’s original ballot wording misleading and ordered the Attorney General to rewrite them; the measure remained on the ballot under a revised title. Further legal challenges were possible. Because the outcome and any implementation details are uncertain, we suggest not basing a sale decision on the amendment alone. If it passes, check with your property appraiser how it applies to your current and next home.
How do you plan the sale of a Florida homestead?
The homestead rules reward sellers who plan the sequence of selling, moving and buying. A few common scenarios in Southwest Florida:
| Your plan | Homestead and portability points to watch | How the sale method can help |
|---|---|---|
| Downsizing within Florida (for example, from a Cape Coral pool home to a Fort Myers condo or a 55+ community) | Benefit transfers proportionally; file DR-501T with the new homestead application by March 1 | A firm closing date makes it easier to coordinate the new purchase; listing may net more on an updated home |
| Moving up to a larger Florida home | Full benefit can transfer up to $500,000 | Selling first can provide funds for the new purchase without a contingency |
| Moving out of state | Portability does not apply; exemption ends for the next January 1 if you no longer live there | Selling before the next January 1 avoids a year of higher, non-homestead taxes on a vacant house |
| Bought the new home first | Old home loses the exemption for years you do not live there on January 1; three-year porting window runs | A faster sale of the old home cuts the double carrying costs |
| Divorce | Benefit generally splits equally unless the judgment says otherwise; spouse joinder on the deed | A clean sale with one closing statement simplifies dividing equity |
| Inherited homestead | Cap generally ends; heirs cannot port it; probate and devise rules apply | An as-is sale can avoid repairs and carrying costs while the estate settles |
Listing with an agent remains a strong option for a well-kept homestead in a desirable neighborhood, and it may produce a higher price. A cash sale tends to fit when timing is the priority: you need to close before a January 1, you already bought your next home, the house needs work, or you are handling a parent’s home from out of town. Our cash offer vs. listing guide and net proceeds calculator can help you compare. If the home needs repairs, see whether fixing up before selling makes sense, and for current conditions, our October 2026 Southwest Florida market update.
Steps to protect your homestead savings when you sell
- Look up your numbers. On your county property appraiser’s website, find your home’s market value, assessed value and exemptions. The difference between market and assessed value is roughly your Save Our Homes benefit.
- Map your dates. Note the January 1 you will last live in the home, your target closing date and the latest date you can qualify a new Florida homestead.
- Choose how and when to sell. Compare listing and cash options on net proceeds and timing, and set a closing date that fits your move. Tell the title company about your marital status and any co-owners early.
- File for the new home. After you own and live in your new Florida home on January 1, file the homestead application and Form DR-501T by March 1, and keep your old closing statement for reference.
Related guides for Florida homeowners
- Selling in Southwest Florida
- Selling in Lee County
- Back taxes and liens
- Title problems and heirs property
- How our cash purchase process works
Key takeaways
- If the home was your homestead on January 1, you generally keep the exemption for the whole year you sell; the buyer is reassessed the following January 1.
- Portability can move up to $500,000 of Save Our Homes benefit to a new Florida homestead: in full when moving up, proportionally when moving down.
- The new homestead must be established within three years of January 1 of the year you left the old one, with Form DR-501T filed by March 1.
- Renting out your homestead can count as abandonment under section 196.061 and start the clock.
- Amendment 3 on the November 3, 2026 ballot would raise the non-school exemption if approved by 60% of voters, but would not change Save Our Homes or portability.
Frequently Asked Questions about selling a Florida homestead
Do I lose my homestead exemption in the year I sell my house?
Generally no. Florida sets homestead status as of January 1, so if the home was your permanent residence that day, the exemption usually applies for the full tax year. Taxes are prorated at closing, and the property is reassessed at market value for the buyer the following January 1. Confirm details with your county property appraiser.
How long do I have to use Florida homestead portability after selling?
You must establish a new Florida homestead within three years of January 1 of the year you abandoned the old one. The clock starts on that January 1, not your closing date. For example, leaving your homestead in 2026 generally means qualifying a new home by the January 1, 2029 assessment date.
How much Save Our Homes benefit can I transfer to my new home?
Up to $500,000. If your new home has an equal or higher market value, you can generally transfer the full benefit. If it is worth less, you transfer a proportional amount based on your old benefit as a percentage of the old home’s market value. Your property appraiser calculates the official figure from the tax roll.
Can I transfer my Florida homestead savings to a home in another state?
No. Portability only works between Florida homesteads. If you move out of state, your Florida exemption generally ends for any year you no longer live in the home on January 1, so many relocating owners aim to close the sale before that date to avoid a higher, non-homestead tax bill on a vacant house.
Will the buyer of my house pay the same property taxes I do?
Usually not. Florida reassesses a home at market value after a change of ownership, so the buyer’s bill is often higher, especially on long-held homes. That is why Florida law requires a property tax disclosure summary for residential buyers, warning them not to rely on the seller’s current taxes when budgeting for the home.
Can I rent out my homestead for a while before selling it?
Renting can cost you the exemption. Under section 196.061, renting all or substantially all of a homestead generally counts as abandonment, with a limited exception for rentals of no more than 30 days per year. Abandonment can also start your three-year portability window. Talk to your property appraiser or a Florida attorney before renting.
Does Amendment 3 change Save Our Homes or portability?
According to Pinellas County Property Appraiser guidance, no. Amendment 3, on the November 3, 2026 ballot, would raise the homestead exemption from non-school taxes if at least 60% of voters approve it, starting in 2027. The Save Our Homes 3%-or-CPI cap and portability rules would remain as they are today.
Can I sell my homestead to Libera Capital Group and still use portability?
Yes. Portability depends on you leaving a Florida homestead and qualifying a new one, not on who buys your house. We buy homesteads for cash, as-is, and can schedule closing around your move. Our principals are licensed Florida real estate brokers who buy for our own account and do not represent you, so you may involve your own agent or attorney.
Planning your move around a homestead deadline?
Tell us your timeline and we will send a written, no-obligation cash offer with a closing date that fits it. Call (239) 686-0823 or email acquisitions@liberacg.com.
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