The Florida Homestead Exemption: 2026 Guide

Florida's Homestead Exemption is the single best tax benefit available to anyone who owns and lives in a Florida home. For the 2026 tax year, it cuts roughly $51,411 off your taxable value, caps your annual assessment increases at 2.7%, and — through portability — lets you carry tens of thousands of dollars in tax savings with you when you move. This guide walks through how it works, who qualifies, how to file before the March 1 deadline, and what the proposed November 2026 ballot amendment could change.

What the Homestead Exemption actually does

Florida law grants two separate but related protections to your primary residence:

1. A property tax exemption that reduces the taxable value used to calculate your annual property tax bill (this guide's focus).
2. A creditor-protection homestead under Article X, §4 of the Florida Constitution that shields your primary home from forced sale by most creditors.

The property tax exemption itself works in two tiers under Florida Statute 196.031:

• First tier — $25,000 (all taxes including school): The first $25,000 of assessed value is exempt from all property taxes, including school district taxes.
• Second tier — $26,411 in 2026 (non-school taxes only): The portion of assessed value between $50,000 and $75,000 is exempt from non-school taxes. Under Amendment 5 (passed in November 2024, effective January 1, 2025), this second tier is now adjusted annually for inflation based on the U.S. Consumer Price Index. The 2026 inflation-adjusted second-tier amount is approximately $26,411, bringing the total exemption to roughly $51,411 for non-school taxes.

On a Florida home assessed at $400,000 in a county with a 1.0% non-school millage and 0.7% school millage:

• Without homestead: $400,000 × 1.7% = $6,800 in property tax
• With 2026 homestead: ($400,000 − $51,411) × 1.0% + ($400,000 − $25,000) × 0.7% = $3,486 + $2,625 = $6,111
• Annual savings: ~$689 from the exemption alone — and that's before the Save Our Homes assessment cap kicks in

Who qualifies

Per Florida Statute 196.031, you must meet all four of the following on January 1 of the tax year:

1. Legal or equitable title to the Florida property. Recorded deed, contract for deed, life estate, or qualifying trust all count.
2. Permanent residence at the property. This means it is the place where you intend to live indefinitely and where you return whenever absent.
3. Florida residency. You must be a bona fide Florida resident as of January 1.
4. No homestead claimed elsewhere. You cannot claim a residence-based tax exemption in another state.

Indicators property appraisers look at when verifying permanent residency include: Florida driver's license, Florida vehicle registration, Florida voter registration, Florida bank accounts, where dependents attend school, and the address on your federal tax return. If you split time between Florida and another state, your “180-day residency” story has to hold up to scrutiny — the most aggressive county appraisers do audit.

How to apply

Filing is done at the county property appraiser's office where the property is located. Almost every Florida county now accepts online applications. You'll need:

• Recorded deed (or proof of ownership)
• Florida driver's license or state ID showing the property address
• Florida vehicle registration showing the property address
• Florida voter registration card (or proof you've registered)
• Social Security numbers for all applicants (and spouse, even if not on title)
• If a recent immigrant: permanent residency card
• If trust-held: a copy of the trust agreement

Once filed, the exemption automatically renews each year — you do not need to refile annually as long as you continue to use the property as your primary residence. The county will mail a renewal postcard each year asking you to notify them only if circumstances change.

Save Our Homes — the 3% assessment cap

Save Our Homes (Florida Constitution Article VII, §4(d), implemented by Statute 193.155) is arguably more valuable than the exemption itself over time. Here's how it works:

• In the year you establish homestead, your property is assessed at full market value.
• Starting the next year, the assessed value can rise by no more than the lesser of 3% or the CPI change.
• For 2026, the CPI change is 2.7%, so the Save Our Homes cap is 2.7%.
• The cap stays with the property year after year, even as market value soars. The difference between market value and capped assessed value is your “Save Our Homes benefit.”
• When the property is sold to a non-family buyer, the cap resets and the new owner is assessed at full market value the following year — which is why second-home and investor buyers often see their first-year tax bill spike dramatically.

Over a 10-year run of strong appreciation, the Save Our Homes cap can create five- and six-figure differences between assessed value and market value. That's the savings you can port to a new home.

Portability — taking your SOH savings with you

Portability was added to the Florida Constitution by Amendment 1 in 2008 (Florida Statute 193.155(8)). It lets you transfer your accumulated Save Our Homes benefit from your old Florida homestead to a new one — within strict timing rules.

The rules

• Maximum transferable benefit: $500,000 of SOH savings (market value minus capped assessed value).
• Time window: You must establish the new homestead within 3 years of January 1 of the year you abandoned the old homestead. Example: if you sold or stopped occupying your old homestead in 2024, you have until January 1, 2027 to homestead the new property and claim portability.
• Up or down move: If your new home is more expensive, you transfer the full eligible SOH savings. If your new home is less expensive, you transfer a proportional share (new-home market value ÷ old-home market value × SOH savings).
• How to file: Submit Form DR-501T (“Transfer of Homestead Assessment Difference”) to your new county's property appraiser, along with the regular DR-501 homestead application, by March 1.
• Spousal portability: Married couples filing jointly transfer the larger of the two spouses' SOH benefits. Divorcing couples can split portability by agreement.

Portability is one of the most under-used tools in Florida real estate. If you've owned your current Florida home for 5+ years through a period of appreciation, you may be sitting on $50,000–$300,000+ of portable SOH savings — meaning your new home's first-year taxable value could be tens of thousands of dollars lower than market.

The November 2026 ballot amendment — what could change

In a special session in June 2026, the Florida Legislature approved a proposed constitutional amendment that would dramatically expand the Homestead Exemption. The proposal goes to voters on the November 2026 statewide ballot and needs at least 60% approval to pass. If approved:

• January 1, 2027: Homestead exemption rises from $50,000 to $150,000 for all levies except school district taxes
• January 1, 2028: Exemption increases to $250,000, then adjusts annually for inflation

If the amendment passes, it would be the largest expansion of the Florida Homestead Exemption since the original $25,000 base was established. The school-tax portion ($25,000) would remain unchanged. Watch for updates leading into November 2026.

Other Florida homestead-related exemptions worth knowing

County-specific notes

Common mistakes that cost Florida homeowners their exemption

• Forgetting to file the first year after closing. The exemption is not automatic — you must file by March 1 of the year following closing (assuming you closed before January 1).
• Renting out the home for more than 30 days in two consecutive years. Florida Statute 196.061 deems the property abandoned as homestead, and the exemption is removed.
• Maintaining a homestead-equivalent exemption in another state. A common issue for snowbirds. Cancel the out-of-state exemption before filing Florida.
• Holding the deed in an irrevocable trust that does not preserve a beneficial interest. Most revocable living trusts work fine; some irrevocable trusts disqualify homestead. Get legal advice if you're putting the home in trust.
• Failing to file portability when moving within Florida. The DR-501T is a separate form from the homestead application. Missing it leaves real money on the table.

Frequently asked questions