How does homestead portability work in Florida?

What actually transfers?

Portability moves your tax savings, not the exemption itself. You still have to qualify and apply for homestead on the new home, and both homes must be in Florida. Portability is not automatic: you must apply for it, and a denial can be appealed to the Value Adjustment Board.

The benefit is the difference between the prior homestead's just value and its assessed value, limited to $500,000. In the Palm Beach County Property Appraiser's example, a home with a $250,000 market value and a $150,000 assessed value carries a $100,000 benefit, which is subtracted from the new home's assessed value, and the 3% cap continues on that portion.[1][2][4]

How do upsizing and downsizing differ?

The formula depends on whether the new home's just value is higher or lower than the old one's:

• Equal or higher-value home: the new assessed value is the new just value minus the full benefit, up to $500,000.
• Lower-value home: the benefit is proportional. The new assessed value equals the new just value divided by the old home's just value, multiplied by the old home's assessed value, and the resulting gap cannot exceed $500,000.
• Co-owners who leave a jointly owned homestead split the benefit equally or by ownership share; spouses can designate their shares on a sworn form, and that designation is irrevocable.[1][2]

How long do you have, and how do you file?

The law requires that you received a homestead exemption as of January 1 of any of the three immediately preceding years. The Broward County Property Appraiser stresses that this is not three years from your closing date: you must obtain the new homestead for one of the three tax years after the year you left the old one. For example, if you sell and move out in 2026, the new homestead must be in place for the 2027, 2028 or 2029 tax year, and you must live in the new home on January 1 of that year.

File the portability application together with your homestead application by March 1; Palm Beach County lets you file both through its online e-file system. Late applicants can petition the Value Adjustment Board but must show extenuating circumstances and pay a $15 fee. Palm Beach and Broward both offer portability calculators to estimate the result.[1][2][3][4]