Thinking about buying or selling in Orlando and not sure how your property taxes will change? You are not alone. Florida’s homestead rules can feel confusing, especially when you are moving within the state and want to keep your savings. In this guide, you will learn how the homestead exemption reduces your taxable value, how the Save Our Homes assessment limit controls increases over time, and how portability can let you carry tax savings to a new home. Let’s dive in.
What the homestead exemption does
Florida’s homestead exemption lowers the taxable assessed value of your primary residence. Many homeowners qualify for a base reduction and, in many cases, an additional reduction that can bring the total up to a commonly referenced $50,000. This lowers the portion of value your local millage rates apply to, which reduces your annual property tax bill.
You must use the home as your primary residence to qualify. The benefit applies only to a single Florida homestead at a time. Once granted, it generally continues each year unless your ownership or eligibility changes.
How Save Our Homes protects you
The Save Our Homes (SOH) assessment limit is a separate constitutional rule that controls how much your assessed value can increase each year. Your homestead’s assessed value can go up by no more than the lesser of 3 percent or the change in the Consumer Price Index for that year. This helps protect long-term owners from sharp jumps in property taxes during fast-rising markets.
Over time, your market value and your assessed value can drift apart. The gap between them is your accumulated SOH benefit. This gap often becomes very important when you sell and buy another home in Florida.
Portability explained
Portability lets you transfer part or all of your accumulated SOH benefit from your current Florida homestead to a new Florida homestead. In plain terms, portability helps you bring tax savings with you when you move, subject to timing rules and a statutory cap on the amount you can transfer.
The transferred benefit reduces the assessed value of your new homestead. It does not reduce the market value and it cannot make the assessed value negative. Portability is not automatic. You must request it when you apply for homestead on the new property and provide details about your prior homestead so the property appraiser can calculate your allowable transfer.
Who qualifies in Orange County
To claim the homestead exemption in Orange County you must:
- Own the property and occupy it as your permanent, primary residence.
- Be a Florida resident using the home as your main dwelling.
- Hold ownership on January 1 of the tax year for which you apply.
For portability, you must be moving from one Florida homestead to another Florida homestead. You will request portability during the homestead application for your new property and supply information about your prior homestead.
Important dates and deadlines
Timing matters. Here are key date guidelines for most Florida homeowners:
- January 1: You must have ownership and use the property as your primary residence by this date to claim homestead for that tax year.
- March 1: Homestead applications are commonly due by this date. Check with the Orange County Property Appraiser for the exact deadline and any extensions.
- When you move: Request portability when you apply for homestead on the new property. Apply promptly after you establish the new homestead.
If you miss a deadline, contact the Orange County Property Appraiser right away. There may be limited options, but acting quickly is important.
What to bring: documents checklist
Local offices may have specific requirements, but most applications include:
- Proof of ownership, such as a deed or closing statement.
- Proof of Florida residency at the property address, such as a Florida driver’s license or ID, vehicle registration, voter registration, or Declaration of Domicile.
- Social Security numbers for the owner or owners.
- Any forms requested by the property appraiser, including portability transfer information for your prior homestead.
Always confirm the current checklist with the Orange County Property Appraiser before you apply.
Step-by-step: how to apply in Orange County
Follow these practical steps to help your application go smoothly:
- Confirm eligibility and gather documents. Be sure your Florida ID, vehicle registration, and voter registration reflect the property address.
- File the homestead exemption application with the Orange County Property Appraiser by the local deadline.
- If you are moving and want portability:
- Apply for homestead on your new property as soon as it becomes your primary residence.
- Indicate that you are requesting portability and provide prior-homestead details such as the previous address, parcel ID, and the year your prior homestead began.
- Keep copies of your closing documents and past property tax records in case the appraiser requests more information.
- If your application is denied or you disagree with the assessment, contact the property appraiser. If needed, you can file a petition with the Orange County Value Adjustment Board. Act quickly because deadlines apply.
Examples: how the savings can work
These are simple examples to show how the rules operate in practice. Your actual numbers will depend on the appraiser’s calculations and local millage rates.
Example 1: homestead exemption only
- Market value: $300,000
- Assessed value: $300,000
- Homestead exemption: commonly referenced up to $50,000 total, which could reduce the taxable assessed value to $250,000. Your tax bill would be based on the lower amount.
Example 2: Save Our Homes benefit over time
- Market value: $400,000
- SOH-limited assessed value: $260,000 due to the annual cap on increases
- Accumulated SOH benefit: $140,000 (the difference between market and assessed)
Example 3: portability to a new homestead
- You sell the home in Example 2 and buy a new primary residence with a market value of $600,000.
- If you qualify and the amount is within the portability cap, your $140,000 SOH benefit can reduce the new home’s assessed value, subject to the appraiser’s calculation and the year’s rules. This can lower your taxes on the new home.
Local tips for Orlando buyers and sellers
Small timing decisions can have big tax effects. Keep these points in mind:
- Coordinate your move date with the January 1 rule. When you occupy the new home can determine which tax year you can claim homestead and portability.
- Update your Florida identification and registrations to the new address before you apply. Many applications rely on these documents to confirm residency.
- Portability works across county lines in Florida. If you are moving from another Florida county into Orange County, you can still request portability when you file your homestead application for the new home.
- If you are downsizing or moving closer to amenities, review the portability cap and how it could affect your new assessed value. The Orange County Property Appraiser can confirm the current cap and how it applies.
Other exemptions you may qualify for
In addition to the standard homestead exemption, Florida offers other exemptions that may apply to you. Some common examples include exemptions for seniors with income qualifications, totally and permanently disabled veterans, surviving spouses, and the permanently disabled. Each has specific eligibility rules and its own application process. If one might apply to you, ask the property appraiser what is available and how to apply.
Common pitfalls to avoid
Avoid these frequent missteps to keep your tax savings on track:
- Missing the initial March 1 filing deadline for a new homestead.
- Forgetting to update your Florida driver’s license, vehicle registration, or voter registration before applying.
- Assuming portability is automatic. You must request it during the homestead application on your new home and supply information about your prior homestead.
- Overlooking additional exemptions that require separate applications and income or status documentation.
How a local guide helps you plan
Understanding homestead, Save Our Homes, and portability can shape your buying and selling strategy. The timing of your closing, your move-in date, and your application steps all affect how much you save and when the savings start.
If you are weighing a move in Winter Park, Maitland, Altamonte Springs, Lake Mary, or a nearby Orlando suburb, it helps to map out these steps early. A clear plan can support your budget, set honest expectations for your first tax bill in the new home, and avoid last-minute surprises.
Ready to talk it through and build a step-by-step plan tailored to your move? Connect with Gwyn Picerne to align your timeline and paperwork so you can capture every benefit you qualify for.
FAQs
What is the Florida homestead exemption?
- It is a property tax benefit that reduces the taxable assessed value of your primary residence in Florida, which can lower your annual tax bill.
How does Save Our Homes protect my taxes?
- The SOH rule limits annual increases in your homestead’s assessed value to the lesser of 3 percent or the CPI change, helping prevent sharp tax spikes over time.
What is portability for Florida homeowners?
- Portability allows you to transfer your accumulated SOH benefit from one Florida homestead to a new Florida homestead, reducing the new home’s assessed value within set limits.
When do I need to apply for homestead in Orange County?
- You generally must be an owner-occupant by January 1 and file your application by March 1 for that tax year. Always confirm the exact local deadline.
Is portability automatic when I move?
- No. You must request portability when you apply for homestead on your new home and provide details about your prior Florida homestead.
Can I have homestead on two properties at once?
- No. Florida allows only one homestead per person or family at a time, and it must be your primary residence.
What if I disagree with my assessed value?
- Start by contacting the Orange County Property Appraiser for an informal review. If needed, you can petition the Orange County Value Adjustment Board within local deadlines.
