If you are a current homeowner claiming Florida as your primary residence and plan to move to another home within the state, you can transfer a portion of your homestead exemption savings from your current home to your next home by using tax portability. This is the Save Our Homes Amendment passed in 2008 to the Florida constitution. In this video, I explain how to calculate tax portability for a future move or transfer of your homestead exemption savings.

There are two calculations to determine how much of the savings a homeowner can transfer, depending on whether you are downsizing or upsizing in market value.  The amount of savings that can be transferred between properties is capped at $500,000, and timewise, you have up to December 31st of the following year after the first property homestead exemption is abandoned, for the next intended homestead property must be then established. 

Determining Tax Portability Amount

First gather some information from the county tax roll, specifically the market value shown, and the assessed value.
For Upsizing: Your tax portability amount is the difference between the market value on the property appraiser site, and the assessed value.   Then subtract that tax portability amount from the future market value of the next property at the time of applying for tax portability.

For Downsizing: Divide the property assessed value on the tax roll by the market value to come up with a rate.  That rate is then multiplied by the new market value on the tax roll of the new property to come up with the tax portability amount.  Then as above the tax portability amount will be subtracted from the future market value of the next property at the time of applying for tax portability and homestead exemption.

Be sure to visit your county website to follow any guidelines on timing and application status as they are subject to change. Contact me for any questions on tax portability or otherwise!