Florida Save Our Homes cap: how it works to limit increases

Last updated 2026-07-10

What is the Save Our Homes cap and where does it come from?

Save Our Homes (SOH) is a Florida constitutional protection that stops the assessed value of a homestead property from rising more than 3% per year, or the percentage change in the Consumer Price Index (CPI), whichever is lower. In years when inflation runs below 3%, your cap is even tighter. ^[1]

Voters approved it as Amendment 10 to the Florida Constitution in November 1992. The Legislature put it into law through Section 193.155, Florida Statutes, and it took effect for the 1995 tax year. ^[2] This is not a program you apply for. It kicks in automatically the year after you first receive a homestead exemption.

The result is a number called the "SOH differential," sometimes labeled the "SOH benefit." That is the dollar gap between what your property is worth on the open market (the just value) and the lower number the county uses to figure your tax bill (the assessed value). In a rising market, that gap gets big fast. A home bought in 2010 in a fast-growing Florida county might carry a just value of $550,000 today but an assessed value of $280,000. The owner pays taxes on $280,000, minus any exemptions layered on top.

How does the 3% cap calculation actually work each year?

Every January 1, the county property appraiser estimates the market value of your home. That number is the just value. Then they calculate how far they can raise the assessed value from last year. The formula: new assessed value = prior year assessed value multiplied by the lesser of (1 + 0.03) or (1 + CPI change). ^[2]

The Bureau of Labor Statistics publishes the CPI figure the state uses. Florida applies the national CPI for all urban consumers (CPI-U) for the 12-month period ending in September of the prior calendar year. The Florida Department of Revenue announces the official cap percentage each year. For the 2024 tax year (January 1, 2024 valuation date), the cap was 3.0% because CPI ran above 3%. For 2023, it was also 3.0%. For 2021, when inflation was still low, the cap fell to 1.4%. ^[3]

One nuance matters a lot. The assessed value can never exceed the just value, even with the cap formula. If your home's market value actually drops, your assessed value drops too, down to just value if needed. The cap only restricts increases.

Here is a worked example. Say your assessed value on January 1, 2023 was $300,000, and the 2024 cap is 3.0%. The most your county can assess on January 1, 2024 is $300,000 x 1.03 = $309,000, even if the market value jumped to $380,000. You pay taxes on $309,000, minus your exemptions.

Tax Year	SOH Cap (CPI or 3%, whichever lower)
2019	2.3%
2020	1.9%
2021	1.4%
2022	3.0%
2023	3.0%
2024	3.0%	[3]

Who qualifies for the Save Our Homes cap?

You need a Florida homestead exemption on the property. That's the whole requirement. The SOH cap is not a separate application. ^[2]

To get homestead exemption, you must own the property, make it your permanent primary residence as of January 1 of the tax year, and file an application with your county property appraiser by March 1. ^[4] You must be a Florida resident and a U.S. citizen or a permanent resident alien. If you own several homes, only one can be homestead.

The cap takes effect the year after your first year of homestead exemption. So if you buy a home and file for homestead for the January 1, 2024 tax year, the assessed value that first year is set at just value with no cap. Starting January 1, 2025, the 3% cap protects you going forward.

Renters never get this benefit, even after 30 years in the same house. The cap follows the owner, not the occupant.

What happens to the SOH benefit when you sell or move?

This is where a lot of Florida homeowners get a rude surprise. When a property sells or loses its homestead exemption for any reason, the assessed value resets to full market value (just value) the following tax year. The accumulated SOH differential vanishes overnight. ^[2]

Buyers, budget carefully. The property taxes on the MLS listing might look manageable because the seller has a $200,000 SOH differential built up. Your first full tax year as the new owner, that cushion is gone and your assessment jumps to what you actually paid. It is one of the most common sticker shocks in Florida real estate.

Sellers cannot hand the cap benefit to a buyer. You can, though, carry it to a new home you buy in Florida. That is a separate benefit called Portability, and it gets its own section next.

What is SOH portability and how do you move your tax savings?

Portability lets Florida homeowners transfer their accumulated SOH differential to a new homestead anywhere in the state. Voters added it through Amendment 1 in January 2008, effective for the 2008 tax year, and the Legislature put it into law under Section 193.155(8), Florida Statutes. ^[5]

The maximum portable amount is $500,000 in SOH benefit. If your just value was $400,000 and your assessed value was $250,000, your differential is $150,000. You can carry that full $150,000 to cut the assessed value of your new home.

Upsizing to a more expensive home? You transfer the full dollar amount of the differential. Downsizing? You transfer a proportional share. The downsizing formula: portable benefit = (just value of new home / just value of old home) x SOH differential.

You must file a Portability Application (Form DR-501T) with your new county's property appraiser by March 1 of the year after you establish the new homestead. ^[5] Miss that date and you lose portability for that year. Some counties are strict about extensions, some are not. Call your appraiser's office and ask directly.

One timing detail trips people up. You generally must sell or abandon your old homestead within a set window of January 1 of the year you establish the new homestead to qualify. Florida extended that window from two years to three via SB 1322, effective July 2022, which helped homeowners whose sales dragged out. ^[5]

How does the SOH cap interact with other Florida exemptions?

The SOH cap and the homestead exemption are separate benefits that stack. They work together.

The standard homestead exemption removes the first $25,000 of assessed value from all taxes, and a second $25,000 exemption removes the next $25,000 from non-school taxes. ^[4] The SOH cap then limits how high the assessed value can climb after those exemptions apply. You get both.

Florida also has exemptions for seniors (up to $50,000 additional for low-income seniors 65 and older in counties that have adopted it), veterans with a service-connected disability (up to full exemption for totally and permanently disabled veterans), and widows or widowers ($500 off assessed value). ^[6] All of these stack on top of whatever assessed value the SOH cap produces.

So a longtime owner with a large SOH differential, a $50,000 homestead exemption, and a senior exemption can end up with a taxable value far below what the home would fetch. That is by design. Florida built the system to let people age in place without getting priced out by rising values.

Can the Save Our Homes cap protect you from big assessment jumps after a hurricane or renovation?

After a major storm, or if you do a big renovation, this question comes up constantly. The short answer: the cap usually survives storm rebuilding, but new construction gets assessed at full value once, then the cap resumes.

Storm damage and rebuilding: if your home is destroyed and you rebuild, the cap can survive as long as you keep the homestead exemption continuously. The appraiser will assess the rebuilt home, but the SOH cap should still limit increases from the pre-storm assessed value going forward. The details hinge on whether the exemption lapses during construction. If you move out and fail to re-establish homestead in time, you can lose the benefit. Florida Statute 193.155(3) speaks to this, providing the cap continues if the property stays the owner's permanent residence. ^[2]

Renovations that add real square footage: counties assess "new construction" separately and at just value in the year it is finished. Picture a $100,000 addition. The county can assess that addition at full market value the first year, and it gets bolted onto your existing capped assessed value. From then on, the whole thing sits under the 3% cap. So a big addition causes a one-time jump, and the cap protects you again afterward. ^[2]

What is the "recapture rule" and when does assessed value go up even when market value drops?

This one catches people off guard. Most owners assume that if the home is worth less, taxes should go down. Usually true. But there is a scenario where your assessed value climbs even in a falling market.

If your assessed value has drifted well below just value after years of capping, and then the market dips a little while your assessed value still sits below the new just value, the county can raise your assessed value toward just value. Put plainly: as long as your assessed value stays below just value after applying the 3% cap, the county applies the increase up to the cap. You do not get a pass just because the market softened a bit.

The ceiling still holds. As covered earlier, assessed value can never exceed just value. If the market drops far enough that just value falls below your assessed value, the assessed value is cut to match just value. Florida's recapture rule under Section 193.155(1) makes the cap a ceiling, not a freeze. ^[2]

The lesson for your wallet: in a moderate correction, your tax bill might not drop as much as you hope. The SOH differential cushions you both ways.

How do you check your current SOH differential and assessed value?

Every Florida property appraiser posts this online for free. Search your county appraiser's website by address or parcel number. The property detail page shows the just value, the assessed value (also called the SOH assessed value), and each exemption that reduces your taxable value. The gap between just value and assessed value is your SOH benefit in dollars.

Florida has 67 counties, each with its own appraiser website. The Florida Department of Revenue keeps a directory at floridarevenue.com linking to every one. ^[7] You can also read your TRIM (Truth in Millage) notice, mailed by August 25 each year. That single page lays out your just value, assessed value, exemptions, and a prior-year comparison.

If the assessed value looks too high given the cap math, that is worth a closer look. Run the arithmetic yourself: take last year's assessed value and multiply by 1.03 (or the applicable cap for that year). If the current assessed value tops that result while still sitting below just value, something is off. Call your county appraiser first. If that does not fix it, you can file a petition with the Value Adjustment Board.

For anyone fighting a high assessment, gathering evidence and filing a petition works the same whether the problem is SOH math or plain overvaluation. TaxFightBack's appeal kit walks through every form and deadline in plain language.

What are the deadlines you cannot miss to protect your SOH benefit?

Florida property tax deadlines are unforgiving. Miss one by a day and it can cost you a year of savings or your portability benefit outright.

Deadline	Date	What it covers
Homestead exemption application	March 1	First-time and re-filing homestead
Portability application (DR-501T)	March 1	Transferring SOH differential to new home
TRIM notice mailed	By August 25	Appraiser sends just value, assessed value, exemptions
Petition to Value Adjustment Board	25 days after TRIM notice	Challenging assessed value or exemption denial
Property tax bill mailed	November 1	Bills sent; discount for early payment
4% early payment discount	November 30	Pay in November for 4% discount
Taxes due (no discount)	March 31	Final deadline before delinquency	[4][8]

The March 1 homestead deadline is the one that matters most for SOH. If you bought a home in 2024 and forgot to file by March 1, 2025, you will not get homestead (or the SOH cap starting in 2026) until you file by March 1, 2026 for the 2026 tax year. That is two full years without protection. Some counties accept late applications in narrow cases, but do not count on it.

For portability, the Florida Department of Revenue's Form DR-501T must reach your new county by March 1 following the year you established the new homestead. ^[5]

What happens if your homestead exemption was wrongly denied or canceled?

If your county appraiser denies your homestead application or cancels an existing exemption, they must notify you in writing. You have 30 days from the date of that notice to file a petition with the Value Adjustment Board (VAB). ^[8]

Common reasons for denial or cancellation: you switched your driver's license or voter registration to another state, you claimed a residency-based exemption elsewhere, you rented out the entire property, or the appraiser found conflicting domicile evidence. Those are legitimate disqualifiers. But errors happen, and a wrongly canceled exemption costs you the SOH cap for that year too.

If you lost your homestead to an error, the VAB or a circuit court can restore it. A restored homestead should restore the SOH cap retroactively for the affected year. Get a tax attorney or a Certified Public Accountant who knows Florida property tax if you are fighting a wrongful cancellation. The stakes are high and the process is specific.

For plain overvaluation disputes, you can handle the VAB petition yourself. The forms are public, the process is set by statute, and the filing fee is modest (typically $15 per parcel). ^[8]

How does Florida's SOH cap compare to similar caps in other states?

Florida is not the only state that caps assessment increases, but its cap ranks among the most protective in the country for homeowners.

California's Proposition 13 (1978) caps increases at 2% per year regardless of inflation, with a full reset to purchase price on sale. ^[9] That is a harder cap than Florida's, and California has no portability equivalent. Texas caps homestead appraised value increases at 10% per year but has no statewide portability program. ^[10] Maryland caps residential assessment increases at 10% annually, phased in over three years. ^[11]

Florida's 3% or CPI rule runs softer than California's 2% hard cap in low-inflation years, but in high-inflation years Florida owners come out ahead because the cap holds at 3% while other costs climb faster. The portability feature is largely unique to Florida and adds real value for move-up buyers.

For contrast, a homeowner in a county with no assessment cap could see the assessed value jump 30% or 40% in a single reassessment cycle. Maryland faced exactly that kind of swing before it added its cap. See how Montgomery County property tax works under Maryland's phased-in cap. Florida's annual cap heads off those sudden shocks.

Curious how big California jurisdictions handle assessments under Prop 13? LA County property tax runs on the 2% rule, and Santa Clara property tax follows the same framework.

What are common mistakes Florida homeowners make with Save Our Homes?

The biggest mistake by far: buying a home and never filing for homestead by March 1 of the following year. Your real estate agent should remind you. Your title company probably will too. Neither is obligated to, and it is your job. Miss it and you pay full assessed value taxes for a year or more.

Second most common: forgetting portability when you move. Owners who built up $200,000 or $300,000 in SOH differential, then moved without filing DR-501T by March 1, threw away tens of thousands in future tax savings. The application is a one-page form. File it.

Third: not confirming the new owner's assessed value reset correctly after a purchase. County records sometimes lag. If a new owner's assessed value still shows the seller's capped value a year after closing, the county will eventually catch it and send a back-tax notice. The Florida Department of Revenue and property appraisers audit this.

Fourth: assuming the SOH cap means you should not bother appealing your just value. The cap limits increases in assessed value, but it does nothing to stop an inflated just value from doing damage. If the just value runs too high, your assessed value creeps toward it over future years even with the cap in place. Appealing an inflated just value today protects your tax bill for years. TaxFightBack's appeal kit has the evidence templates and a VAB petition walkthrough that make the process manageable on your own.

Frequently asked questions

Does the Save Our Homes cap apply automatically or do I have to apply for it separately?

It applies automatically once you have a homestead exemption. You do not file a separate SOH application. The cap takes effect the tax year after your first year of homestead. The only separate filing you ever need is the portability application (Form DR-501T) when you move to a new Florida home and want to transfer your accumulated SOH differential.

What is the Save Our Homes cap percentage for 2024?

For the 2024 tax year (January 1, 2024 valuation date), the cap is 3.0%. The cap equals the lesser of 3% or the change in the national CPI-U for the 12 months ending September of the prior year. Inflation topped 3% in that period, so the constitutional maximum of 3% applied. The Florida Department of Revenue announces the official figure each fall.

Will I lose my Save Our Homes benefit if I refinance my mortgage?

No. Refinancing has no effect on your homestead exemption or the SOH cap. The benefit is tied to ownership and permanent residency, not to your mortgage. As long as you keep owning the property and it stays your primary residence, the cap stays in place regardless of any change to your financing.

What happens to my SOH cap if I inherit a Florida home?

Inheriting a property does not automatically transfer the prior owner's SOH benefit. The assessed value resets to just value the year after the ownership change. To start your own SOH protection, file for homestead exemption by March 1, showing the property is your primary residence. Once you have homestead, the cap begins protecting you from the following tax year onward.

How much SOH benefit can I port to a new Florida home?

Up to $500,000 in accumulated SOH differential is portable. Moving to a more expensive home, you transfer the full dollar amount. Downsizing, you transfer a proportional share based on the ratio of the new home's just value to the old home's just value. File Form DR-501T with your new county appraiser by March 1 of the year after you establish the new homestead.

Can my assessed value go up even if my home lost value this year?

Yes, in some cases. If your assessed value still sits below just value after a moderate market decline, the county can still apply the cap percentage increase, as long as the result does not exceed just value. Only when the market drops enough that just value falls below your current assessed value will your assessment decrease. The cap limits increases, not decreases, but it is not a freeze.

What is the deadline to apply for the homestead exemption to get SOH cap protection?

March 1 of the tax year for which you want the exemption. Miss it and you wait another full year. Some county appraisers accept late applications in narrow cases, such as a qualifying military deployment, but there is no statutory right to a late filing. File early, ideally before the end of January, to be safe.

If my home was severely damaged in a hurricane and I had to move out, do I lose my SOH cap?

Not automatically. Florida Statute 193.155(3) provides that the cap continues if the property remains the owner's permanent residence. But if you formally change your domicile during rebuilding or fail to re-establish homestead residency, you risk losing the exemption and the cap. Notify your county appraiser's office of your situation in writing to protect the benefit while repairs proceed.

Does the Save Our Homes cap apply to rental properties or commercial property?

No. The SOH cap is only for homestead-qualified properties, meaning owner-occupied primary residences. Rental homes, vacation homes, commercial buildings, and vacant land do not qualify for homestead and have no SOH cap. Non-homestead residential properties do get a separate 10% annual assessment increase cap under Florida Statute 193.1554, but that is a different and weaker protection.

Can I appeal my just value even if my assessed value is already capped low?

Yes, and it is often the smart move. The just value is the ceiling your assessed value will climb toward over future years as the cap is applied. An inflated just value today means higher taxes in 5 to 10 years even with the cap. Filing a VAB petition to cut the just value is legitimate and you do not need an attorney. The filing fee is typically $15 per parcel in Florida.

What is the difference between just value, assessed value, and taxable value in Florida?

Just value is the market value the appraiser assigns. Assessed value is just value reduced by the SOH cap (it can never exceed just value). Taxable value is assessed value minus all exemptions (homestead, senior, veteran, and so on). Your tax bill is taxable value multiplied by the millage rate. All three numbers appear on your annual TRIM notice, mailed by August 25.

How long does it take to build a large SOH differential?

It depends on how fast market values rise against the 3% cap. In a market growing 8% to 10% a year, a meaningful gap builds quickly. Five years of 10% annual market growth against a 3% cap creates roughly a 38% gap between just value and assessed value. In slow markets, the differential stays small because just value barely tops the capped assessed value.

What form do I use to apply for SOH portability and where do I file it?

Form DR-501T, Claim of Portability, available on the Florida Department of Revenue website or from any county property appraiser's office. File it with the property appraiser of the county where your new homestead sits, by March 1 of the year following the year you established the new homestead. You also file the standard homestead application (Form DR-501) at the same time if you have not already.

Is there a maximum dollar amount for the Save Our Homes cap benefit?

There is no cap on how large your SOH differential can grow over time for your current home. But when you move and use portability, the transferable amount tops out at $500,000. A homeowner in Miami Beach who built a $700,000 differential over 25 years can only port $500,000 of it to a new home. The remaining $200,000 is lost when the property sells.

Sources

1. Florida Constitution, Article VII, Section 4(d): The Save Our Homes cap limits annual increases in homestead assessed value to 3% or CPI change, whichever is lower, established by Amendment 10 (1992).
2. Florida Legislature, Section 193.155, Florida Statutes: Statutory implementation of the SOH cap, including rules on new construction additions, recapture, and hurricane damage; assessed value cannot exceed just value.
3. Florida Department of Revenue, Property Tax Oversight, Annual SOH Cap Percentages: Official annual SOH cap percentages: 2019: 2.3%, 2020: 1.9%, 2021: 1.4%, 2022: 3.0%, 2023: 3.0%, 2024: 3.0%.
4. Florida Department of Revenue, Property Tax Exemptions (DR-501): Homestead exemption application deadline is March 1; exemption removes first $25,000 from all taxes and second $25,000 from non-school taxes.
5. Florida Legislature, Section 193.155(8), Florida Statutes, and Form DR-501T: Portability allows transfer of up to $500,000 in SOH differential to a new Florida homestead; DR-501T must be filed by March 1; window extended to three years by SB 1322 (2022).
6. Florida Department of Revenue, Property Tax Exemptions for Seniors, Veterans, and Surviving Spouses: Additional exemptions include up to $50,000 for qualifying low-income seniors 65+, full exemption for totally and permanently disabled veterans, and $500 for widows/widowers.
7. Florida Department of Revenue, Property Appraiser Directory: Florida has 67 county property appraisers; the Department of Revenue maintains a directory linking to each county's website.
8. Florida Department of Revenue, Truth in Millage (TRIM) Notice Guidance: TRIM notices mailed by August 25 each year; Value Adjustment Board petition deadline is 25 days after TRIM notice; VAB filing fee is typically $15 per parcel.
9. California State Board of Equalization, Proposition 13 Overview: California's Proposition 13 caps annual assessment increases at 2% regardless of inflation, with full reset to purchase price on sale.
10. Texas Comptroller of Public Accounts, Residence Homestead Exemptions: Texas caps homestead appraised value increases at 10% annually.
11. Maryland Department of Assessments and Taxation, Homeowners' Tax Credit and Assessment Cap: Maryland caps residential assessment increases at 10% annually, phased in over three years.