Florida's Save Our Homes Cap and Property Tax Portability: What Tampa Bay Sellers Need to Know in 2026

If you own a home in Tampa Bay and have lived in it as your primary residence for several years, you are almost certainly benefiting from Florida's Save Our Homes (SOH) assessment cap — and you may not fully understand how valuable that protection is, or what happens to it when you sell. For many long-term Tampa Bay homeowners, the gap between their capped assessed value and the property's true market value has grown to $50,000, $100,000, or even $200,000 or more. Understanding how to handle that cap — and how to transfer it to your next home — can save you thousands of dollars per year in property taxes.

This guide explains how the Save Our Homes cap works, how much it may be protecting you right now, what happens to your taxes when you sell, and how portability lets you carry a portion of that protection with you when you buy your next Tampa Bay home.

What Is Florida's Save Our Homes Assessment Cap and How Does It Work?

Florida's Save Our Homes law, passed by voters in 1992 and amended over the years, limits how much the assessed value of your homesteaded primary residence can increase from one year to the next. The cap is the lesser of:

• 3% of the previous year's assessed value, or
• The percentage change in the Consumer Price Index (CPI)

This means that even if Tampa Bay property values have surged 15–20% in a given year, your assessed value can rise by no more than 3% (or the CPI rate if lower). Over time, this creates a compounding divergence between your assessed value — the number used to calculate your property tax bill — and the just value (market value) of your home.

For example: a Hillsborough County homeowner who purchased their home in 2012 for $180,000 might have a current market value of $420,000 in 2026, but their SOH-capped assessed value might be only $250,000. The $170,000 difference is called the SOH benefit. At Hillsborough County's combined millage rate of approximately 19–21 mills, that $170,000 difference saves the homeowner roughly $3,200–$3,600 per year in property taxes.

That is not a trivial number — and losing it when you sell can come as a shock if you have not planned for it.

What Happens to Your Property Taxes When You Sell Your Tampa Bay Home?

When you sell your Tampa Bay home, the SOH benefit you have accumulated disappears for that property. The new buyer's assessed value is reset to the just (market) value in the year they acquire the home. If they apply for and receive the homestead exemption, they start building their own SOH cap from that new baseline — but they start from scratch.

This is relevant for sellers for two reasons:

1. Prorating taxes at closing. Florida property taxes are paid in arrears — the bill for the 2026 tax year arrives in November 2026 and is due by March 2027. When you sell your home, property taxes are prorated at closing: the seller pays for the days they owned the property, and the buyer pays for the remainder of the year. But the proration is typically calculated using the current year's tax amount — which, thanks to your SOH cap, may be significantly lower than what the buyer will actually owe once their value resets to market.

In some transactions, the buyer's lender will require that the proration be based on the estimated new assessed value rather than the current bill, which can surprise sellers who expect only a modest tax credit at closing. Discuss this calculation carefully with your title company and real estate attorney before closing.

2. Carrying costs of your next property. If you plan to buy another home in Tampa Bay after selling, your new property will be assessed at market value — your own SOH benefit from your old home does not automatically follow you. That is where portability comes in.

What Is Property Tax Portability in Florida and How Does It Work?

Florida voters approved Amendment 1 in 2008, which created portability — the ability to transfer up to $500,000 of your accumulated SOH benefit to a new Florida homestead within two years of abandoning your previous homestead.

Here is how it works in practice:

• Your current Tampa Bay home has a just value of $420,000 and an assessed value of $250,000. Your SOH benefit is $170,000.
• You sell that home and purchase a new home in Hillsborough County (or anywhere in Florida) for $450,000.
• You apply for portability along with your homestead exemption on the new property.
• If your new home is worth more than or equal to your old home, you can transfer the full $170,000 SOH benefit, reducing your new assessed value from $450,000 to $280,000.
• If your new home is worth less (you are downsizing), the transferable benefit is proportionally reduced.

The portability transfer is not automatic — you must apply for it by March 1 of the year following the year you establish your new homestead. Missing this deadline means forfeiting the benefit entirely.

How Do You Apply for Portability When Buying a New Home in Tampa Bay?

When you purchase your new Florida home and apply for the homestead exemption, you file a DR-501T form (Transfer of Homestead Assessment Difference) with the county property appraiser's office. The form asks for documentation of your prior homestead — including the address, the year you abandoned it, and the property appraiser's assessment data for the prior property.

You must apply by March 1 of the year following when you established the new homestead. If you move in during 2026, you must apply by March 1, 2027. Applications submitted after that deadline are rejected regardless of circumstances.

In Hillsborough County, the property appraiser's office processes portability applications alongside the homestead exemption filing. Pinellas County and Pasco County have the same requirement and similar processing windows.

What Should Tampa Bay Sellers Do Before Listing to Understand Their Tax Situation?

Before listing your home, it is worth taking a few steps to understand the full financial picture:

Check your current assessment and SOH benefit. Each county's property appraiser publishes an online portal where you can look up your current just value, assessed value, and the dollar amount of your SOH benefit. Knowing this number helps you understand what you will lose and what you can potentially port to your next home.

Estimate your new tax bill under portability. If you are buying within Florida, model out your new assessed value after portability to understand your ongoing tax obligation. The difference between a home assessed at $450,000 versus one assessed at $280,000 can be $3,000–$4,000 per year at Tampa Bay millage rates — a meaningful annual cost that should factor into your budget for the new home.

Plan your closing and move-in timing. Portability requires a new homestead to be established by January 1 of the year you are claiming the benefit. If you sell your old home and take possession of the new one before December 31, you can potentially apply for both the homestead exemption and portability effective January 1 of the following year. Timing the transition carefully can save a year of full-assessment tax exposure on the new property.

At Chitty Buys Houses, we work with long-term Tampa Bay homeowners regularly — including those navigating the SOH cap and portability question. We can provide a no-obligation cash offer so you understand your sale proceeds before making any decisions about your next move. Contact us to get started.

Does Selling to a Cash Buyer Affect Your Portability Eligibility in Florida?

No. The method of sale — cash buyer, traditional listing, agent-assisted sale — has no effect on your portability eligibility. What matters is that you sell your primary homesteaded residence and establish a new Florida homestead within two years. The sale price, the type of buyer, and whether an agent was involved are irrelevant to the portability calculation.

Cash sales can actually benefit sellers in this context because they close faster, allowing you to establish your new homestead sooner. If you need to close before January 1 to capture the homestead exemption on the new property in the upcoming tax year, a cash buyer's 7-to-14-day closing timeline gives you flexibility that a traditional 60-day financed purchase timeline may not provide.