What Is Save Our Homes
Save Our Homes is a Florida constitutional amendment (passed in 1992) that caps the annual increase in assessed value for homesteaded properties at 3% per year, regardless of how much the property's market value actually rises. The cap remains in place until the property changes ownership, at which point the assessed value resets to current market value.
This protection applies only to primary residences where the owner has established homestead exemption status. A home worth $300,000 that appreciates 10% in a year would still see its assessed value increase by only 3% under Save Our Homes, creating what tax assessors call a "use value" versus "market value" gap. That gap accumulates year after year and can mean substantial tax savings over time.
How the Cap Works in Practice
The 3% cap applies to the previous year's assessed value, not the original purchase price. If your home was assessed at $250,000 in 2023, the maximum 2024 assessed value is $257,500 (3% of $250,000). This compounds annually. A property assessed at $200,000 with consistent 3% annual increases reaches only $237,600 after five years, even if comparable sales in the neighborhood show similar homes selling for $320,000.
When you sell the property, the new owner receives a fresh assessment based on the purchase price or appraised market value, whichever is higher. This is why a longtime owner often pays far less tax than a new buyer on an identical neighboring home.
Impact on Assessment Appeals
Save Our Homes creates a ceiling on what county assessors can charge, but it does not prevent you from appealing if you believe even that capped value is too high. At a board of review hearing, you can present comparable sales data showing that properties similar to yours sold for less than the assessed value. The difference between assessed value under the cap and actual market value is irrelevant to your appeal, however.
For example, if your home is assessed at $300,000 under the cap but comparable sales show similar homes sold recently for $280,000, you have grounds to appeal. The board of review will not reduce your assessment below market value, but they will adjust it downward to match that market value if your evidence is strong.
Commercial property owners receive no Save Our Homes protection. Their assessments can increase by any percentage the county deems appropriate, making appeals and comparable sales analysis even more critical for business properties.
Transferability and Portability
Florida law also includes a portability provision that allows homeowners to transfer a portion of unused assessment increases to a new home. If you owned a $200,000 home that would have been worth $250,000 on the open market, your unused increase is $50,000. Moving to a new primary residence lets you apply that $50,000 credit to reduce your new home's assessed value, provided you purchase within two years.
Common Questions
- Does Save Our Homes prevent me from appealing my assessment? No. The cap limits how much the assessed value can increase, but you can still appeal if you believe the capped value itself exceeds the home's market value. Use comparable sales data to make your case at the board of review hearing.
- What happens to my Save Our Homes cap if I refinance or do a cash-out refi? Refinancing does not trigger a reassessment. The cap remains intact. A sale or transfer of ownership is what resets the assessed value.
- Can I lose Save Our Homes protection? Yes. If you fail to apply for homestead exemption status, lose exemption due to not meeting residency requirements, or sell the property, the protection ends. Renting out your former primary residence automatically disqualifies it.