Explained: Florida's Save-Our-Homes benefit
The "Save Our Homes" (SOH) amendment in Florida caps the annual increase in assessed value of homesteaded properties at 3% or the rate of inflation, whichever is lower. This policy effectively shields homeowners from rapid increases in property tax liabilities by limiting how much the taxable value of their property can grow each year.
For example, if the market value of a home rises significantly, the homeowner's assessed value for tax purposes can only increase by a maximum of 3% annually, not reflecting the full increase in market value. This mechanism keeps property taxes more predictable and manageable for homeowners who have been in their homes for long periods, incentivizing property ownership stability.
Portability
When homeowners with SOH benefits decide to move, they can transfer some or all of their accumulated savings to a new homestead property within Florida. This portability allows homeowners to buy another property without losing the tax savings they've accrued. The amount of benefit that can be transferred is capped, and the new property's assessed value is adjusted to reflect the transferred SOH benefit, ensuring the homeowner continues to enjoy reduced property tax bills.
Due to the complexities of this benefit, we recommend contacting the local property assessor to determine applicability.