Understanding The Florida Homeowners Portability Benefit And Why Its Important

Dated: August 2 2022

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Understanding The Florida Homeowners Portability Benefit And Why Its Important

Understanding The Florida Homeowners Portability Benefit And Why Its Important

If you own property in Florida and have heard the term ‘portability’ and feel perplexed, you’re not alone! This great property tax benefit to Florida homeowners is something that isn’t always explained clearly, but should ALWAYS be on a homeowner’s radar when it comes to their primary residence.

'Portability' in Florida refers to the ability of a property owner to transfer some or all of the 'Save Our Homes' tax benefit on a previous homestead to a newly established homestead. Homeowners must have the Homestead Exemption in place on their current residence to qualify for Portability. The law was passed as a constitutional amendment in January 2008.  The 'Save Our Homes' benefit is the difference between the assessed value and market value of a homestead property due to the annual limit on increases in assessed value a homeowner gets when they file for the Homestead Exemption in Florida.

So to put this in simpler terms, Portability basically allows a Florida homeowner to transfer the reduction in assessed tax value on their home that they’ve earned over the years to their next primary residence in Florida when they move.

Example of Florida Portability Benefit Courtesy of the Pinellas County Property Appraiser

Example of Portability Benefit to a Florida Homeowner:

For example, a Florida homeowner could have a primary residence with a Market Value of $300,000. However, since that homeowner filed for the Homestead Exemption when they bought their  house, the assessed property tax value could only increase up to 3% per year. So even though their home is worth $300k, the taxable value is only $200,000 in ‘assessed value’ by the County. They have a portability benefit of $100,000 in assessed value (aka taxable value) they can apply to their next home.

Now let’s say the homeowner moves to a more expensive home for $400,000. After closing, they need to file for the Homestead Exemption AND the Portability Benefit (don’t worry, homeowners can EASILY do this online in Pinellas County all at the same time on the Pinellas County Property Appraiser’s website by clicking HERE). When they apply for the Portability Benefit, the assessed (or taxable) value of their home will automatically be reduced by the $100,000 benefit they accrued from the first home (see above paragraph). That means if their new home is assessed at $400,000 by the county, it will automatically reduce by $100,000 to just $300,000 in assessed value, thanks to their portability benefit.  Layer on the $50,000 Homestead deduction, and the new assessed value would be $300,000 MINUS $50,000, for an assessed value of $250,000. This will greatly reduce the property tax bill moving forward.

Click HERE to learn more about this great benefit offered to Florida Homeowners!

Have more questions about the Homestead Exemption in Florida or the Florida Portability Benefit? Feel free to call us at (727) 400-3315 or message us your questions directly by CLICKING HERE. We love helping our clients save money and take advantages of homeownership programs whenever we can!

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The Sandy Hartmann Real Estate Group

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Andrea Hartmann

Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....

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