Portability & How It Can Save You Money

Did you know that upon selling your current homestead exempt home you are eligible to save money on your property taxes in your next home by PORTing over the Save Our Homes Assessment Difference?

Property owners with Homestead Exemption also receive a benefit known as the “Save Our Homes” cap. The Save Our Homes cap limits increases in the annual assessment of a home to a maximum of 3% regardless of the increase in Market Value.

Homeowners can transfer (or PORT) the difference between the assessed and market values from their previous Homestead Property (known as the Homestead Assessment difference) to another Homestead Property up to $500,000.

CALCULATING PORT

Moving to a more valuable home – UPSIZING
Previous Home New Home
Market Value $250,000 Market Value $400,000
Save Our Homes Assessment Difference – $100,000 P O R T – $100,000
Assessed Value $150,000 Assessed Value $300,000
Moving to a less valuable home – DOWNSIZING
Previous Home New Home
Market Value $250,000 Market Value $200,000
Save Our Homes Assessment Difference – $100,000 * P O R T – $80,000
Assessed Value $150,000 Assessed Value $120,000

*Step 1: Previous Save Our Homes Difference DIVIDED by Previous Market
100,000/250,000 = Cap Ratio 0.4

*Step 2: Cap Ratio MULTIPLIED by New Market Value
0.4  x  200,000 = PORT 80,000

Portability benefits may be reduced if the benefit is split among multiple homestead owners and is limited to $500,000.

HOMESTEAD EXEMPTION Requirements
You must have homestead exemption on your new property within two (2) years of your last homestead exemption AND all owners of a jointly owned previous homestead must abandon that homestead in order to PORT your Homestead Assessment Difference. (Ref. section 193.155, Florida Statutes).

HOMESTEAD EXEMPTION AND SPOUSES
Husband and wife abandoning jointly titled property may designate shares of the homestead assessment difference by filing a Designation of Ownership Shares Of Abandoned Homestead form (DR-501TS). To qualify to make such a designation, the husband and wife must be married on the date that the jointly owned property is abandoned.

All Property Tax Exemption Applications are due March 1st.

Learn more at the Miami-Dade’s Property Appraisers website by clicking here.