If you’ve lived in your Jacksonville home for a while, you’ve likely been benefiting from Florida’s homestead exemption without giving it much thought. You just see a lower property tax bill every year and move on.

But when you sell and buy a new home, the homestead exemption becomes a critical piece of the puzzle. And there’s a related benefit called property tax portability that most Jacksonville homeowners don’t even know exists. Together, these two things can save you thousands of dollars a year in your new home.

Here’s what you need to know.

What Is Florida’s Homestead Exemption?

Florida’s homestead exemption reduces the assessed value of your primary residence by up to $50,000 for property tax purposes. For most homeowners, this saves several hundred dollars a year in property taxes.

More importantly, Florida’s homestead exemption also comes with Save Our Homes protection, which limits how much your assessed value can increase each year. The cap is currently 3% or the Consumer Price Index, whichever is lower. If you’ve been in your home for 10, 15, or 20 years, your assessed value is probably significantly lower than your market value. That’s been saving you real money every single year.

What Happens to Your Homestead Exemption When You Sell?

When you sell your home, your homestead exemption stays with that property. It does NOT transfer to your new home automatically.

Your new home will be assessed at or near its full market value in the year you purchase it, which means your first property tax bill in your new home may be significantly higher than you’d expect based on what you’ve been paying.

This surprises a lot of buyers. And it matters for your monthly budget.

What Is Property Tax Portability?

Here’s where it gets really interesting. Florida law allows you to take the “benefit” you’ve built up through Save Our Homes and apply it to your new home. This is called portability, and it can be a game changer for Jacksonville downsizers.

Here’s how it works. Let’s say your current home has a market value of $450,000 but thanks to Save Our Homes, your assessed value is only $280,000. The gap between those two numbers, $170,000, is your benefit. Florida law allows you to transfer up to $500,000 of that benefit to a new primary residence in Florida.

So instead of your new $380,000 home being assessed at $380,000, it might be assessed at $210,000 in the first year. Depending on your county’s millage rate, that could mean $2,000 to $4,000 in annual property tax savings. Every single year.

What Happens to Portability When You Downsize?

If your new home has a lower market value than your old home, your portability benefit is prorated. You transfer a percentage of your benefit equal to the ratio of the new home’s value to the old home’s value.

Example: Your old home was worth $500,000 with a $200,000 benefit. Your new home is worth $300,000, which is 60% of your old home’s value. You can transfer 60% of your $200,000 benefit, which is $120,000. So your new home gets assessed at $180,000 instead of $300,000. That’s still a very meaningful savings.

The Deadline You Cannot Miss

You have THREE YEARS from when you sell your previous home to claim portability on a new Florida home. If you sell, rent for four or more years, and then buy again, you may lose your portability benefit entirely. This is a real financial reason to think carefully about your timing if you’re considering a long rental period in between homes.

How to Get Your Homestead Exemption and Portability on Your New Home

To claim both benefits on your new Jacksonville home you need to:

1. Own the property as of January 1 of the tax year
2. Make the property your permanent residence
3. File a homestead exemption application (Form DR-501) with your county Property Appraiser’s office by March 1
4. File a portability transfer application (Form DR-501T) at the same time

In Duval County this is the Duval County Property Appraiser. In St. Johns County it’s the St. Johns County Property Appraiser. Do not miss the March 1 deadline.

A Word About Tax Estimates When You’re Shopping

When you’re looking at homes and the listing shows a current property tax amount, be aware that this number reflects what the current owner pays with THEIR homestead exemption and THEIR Save Our Homes cap. Your taxes will almost certainly be higher before your own exemption and portability kick in. Always ask us to help you estimate realistic first-year taxes on any home you’re seriously considering.

The Bottom Line

Florida’s homestead exemption and property tax portability are two of the most significant financial benefits available to Jacksonville homeowners who are moving. Most people don’t fully understand them until they’re sitting across from us at the closing table, which is too late to plan around them.

Now you know. Use it.

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Have questions about property taxes and the real cost of owning a new home in Jacksonville? Call or text: (904) 515-2479 |

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Kevin and Jennifer Hanley, REALTORS® | KW Atlantic Partners Southside The Hanley Home Team HanleyHomeTeam.com