What Is Homestead Portability?
Homestead portability is a Florida constitutional provision that allows homeowners to transfer the difference between their prior homestead's market value and its assessed value (the Save Our Homes benefit) to a new homestead property. Without portability, homeowners who sold a long-held home would lose years of accumulated assessment cap savings and face a dramatically higher tax bill at their new property.
Portability was approved by Florida voters in 2008 through Amendment 1 and is codified in Article VII, Section 4(d) of the Florida Constitution and Section 193.155(8), Florida Statutes.
How Portability Works
The portable amount is the difference between your prior homestead's just (market) value and its assessed value at the time of sale. This difference is called the assessment differential or SOH benefit.
Example: Your prior Bradenton home had a market value of $450,000 and an assessed value of $280,000 due to years of the Save Our Homes cap. Your assessment differential is $170,000. When you buy a new home in Lakewood Ranch for $550,000, you can transfer up to $170,000 of that differential to reduce your new home's assessed value.
The transfer is not dollar-for-dollar in all cases. If the new home is more expensive than the old one, the full differential transfers. If the new home is less expensive, the transferred amount is prorated based on the ratio of the new home's just value to the old home's just value.
The maximum portable amount is $500,000.
Filing Requirements
- File a portability application (DR-501T) with the county property appraiser in the county where the new homestead is located.
- The application must be filed by March 1 of the year following the establishment of the new homestead.
- You must have had a homestead exemption on the prior property within the last 3 calendar years.
- You must apply for a new homestead exemption on the new property at the same time.
Common Portability Mistakes
- Missing the 3-year window — If more than 3 calendar years pass between relinquishing the old homestead and establishing the new one, portability is lost.
- Forgetting to file DR-501T — Filing the regular homestead application alone does not transfer portability. The DR-501T form must be filed separately.
- Assuming portability transfers automatically — It does not. The homeowner must affirmatively apply.
Related Terms
- Florida Homestead Exemption — The exemption portability preserves
- Assessed Value — The value portability reduces on the new property
- Property Tax — What portability saves money on
Barnes Walker Portability Guidance
Barnes Walker's real estate attorneys advise clients on portability eligibility, filing deadlines, and how portability interacts with trust ownership and property transfers. The firm ensures clients do not lose their SOH savings when moving between properties. Request a legal inquiry for assistance.
Florida Law Reference
Art. X, § 4, Fla. Const.; Fla. Stat. Ch. 196
Florida's homestead exemption provides up to $50,000 in property tax relief and constitutional protection from forced sale by most creditors. The Save Our Homes amendment caps annual assessment increases at 3%.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC