Save Our Homes
In 1992 voters approved an amendment to the Florida Constitution known as Save Our Homes (SOH). SOH is an assessment limitation, or “cap”, on increases in the assessed value of a homestead residence. Those increases are limited to 3% or the percent change in the Consumer Price Index (see chart below), whichever is less. The cap goes into effect beginning the year after a homestead exemption is granted.
Non-homestead property will have a 10% assessment cap (similar to SOH). This provision took effect for the 2009 tax roll. This provision does not apply to school taxes. No application is required for the non-homestead cap.
Learn more about Homestead Exemption.
If a homesteaded property is sold, cap and exemption are removed at the end of the calendar year. Taxes are then calculated on the full just/market value. The property will benefit from the limitations of the SOH cap in the second year of the new owner's homestead exemption. For example, if a property owner applies for and receives homestead exemption for 2022, the assessed value will be capped in 2023. When determining taxable value, exemptions are subtracted from the assessed value to reach a taxable value. The taxable value is then multiplied by the annual millage rate to determine the amount of tax due.
A change in property ownership will effectively "reset" the capped value to full market value. It is important to know that property taxes will increase the next year as the assessed value must be adjusted to equal the current market value. Our Tax Estimator will help you determine the tax amount for the year after purchase.
The increase due to the removal of the cap may double or even triple taxes, depending on how long the previous owner had homestead exemption. The table below illustrates this, e.g., if the millage rate for this fictitious property was 23 mills, then the previous owner would have paid $1,242†, whereas one year later the new owner would pay $2,691†, a substantial increase.
How the Cap Works when a Property Sells:
|Value||Previous Owner's Cap||1st year of New SOH||2nd Year of SOH|
If additions or improvements are made to the property, the value of those improvements will be added to the roll regardless of the cap. For example, if a pool is added to a property, the value can increase no more than the cap rate, plus the value of the pool. If we correct such items as size, number of bathroom fixtures, installation of heat and/or air conditioning, the value of those corrections will also be added to the roll above the cap.
The Tax Estimator can calculate an estimate of taxes for a specific address or for a hypothetical purchase of a property within a particular municipality. In addition, it can simultaneously account for any Save Our Homes portability benefit that may be transferred to a different property while performing a tax estimate. You can also call our Exemptions Department at (727) 464-3207 for this and other valuable information.
The fine print...
- The cap does not apply to properties that are not homesteaded or are rented. Multi-family properties may qualify based on percentage of use. For example, if you own a duplex, live in one half and rent the other half to a tenant, only 1/2 of your property value will be capped.
- The cap remains in effect upon the change of title due to divorce or death of a spouse as long as the remaining owner continues to live on the property as their permanent address.
Save Our Homes - Historical Annual Increase
|Year||Consumer Price Index||Save Our Homes Cap|