Thinking about moving in Palm Beach Gardens and worried your property taxes will jump? You are not alone. When you sell a longtime Florida homestead, the tax savings you built through the Save Our Homes cap do not automatically follow you. In this simple guide, you will learn what homestead portability is, how it works in Palm Beach County, and the steps to claim it on your next home. Let’s dive in.
Homestead exemption basics
The Florida homestead exemption reduces your taxable assessed value and provides constitutional protections for your primary residence. The standard exemption commonly totals up to $50,000 in two parts under state rules. There are also separate local exemptions, such as for seniors, disability, or veterans.
To qualify, you must own the property and make it your permanent Florida residence as of January 1 of the tax year. Filing deadlines apply, so plan ahead and confirm the county’s current schedule before you move.
Save Our Homes cap
The Save Our Homes (SOH) cap limits how much your assessed value can increase each year for a homesteaded property. Historically, the increase is the lesser of 3 percent or the Consumer Price Index. Over time, this can create a gap between market value and assessed value.
If you have owned your Palm Beach Gardens home for years, your assessed value may be far below market. That gap is your SOH benefit, and it is what you can transfer with portability.
What portability transfers
Portability lets you move some or all of your SOH benefit from one Florida homestead to your next Florida homestead. You are transferring the assessment difference, not the homestead exemption itself. The transferred amount lowers the new home’s assessed value, which can reduce your property tax bill.
There may be statutory limits on how much benefit you can transfer. Always confirm current caps and rules with the Florida Department of Revenue or the Palm Beach County Property Appraiser.
How the calculation works
Here is the basic sequence you can expect when portability applies:
- Find the previous homestead’s market value and its SOH-capped assessed value. The difference is your portability amount.
- Apply any state maximums, if relevant.
- Subtract the approved portability amount from the market value of your new Florida homestead to arrive at a lower assessed value. Then other exemptions may apply to reach your final taxable value.
Simple example for Palm Beach Gardens
This hypothetical example is for illustration only. Your results will vary based on official calculations.
- Your former Palm Beach Gardens home had a market value of $500,000 and an assessed value of $350,000. The SOH benefit equals $150,000.
- Your new home’s market value is $700,000.
- If the full $150,000 transfers, your new home’s assessed value before other exemptions would be $700,000 minus $150,000, or $550,000. Then homestead and any other exemptions would apply.
When portability helps
Upsizing in Palm Beach Gardens
If you are moving to a higher-priced home, portability can prevent a big jump in assessed value. This is especially helpful when you have held your current home for many years under SOH.
Downsizing within the county
Portability still offers savings when moving to a lower-priced home. The transferred benefit will reduce the new home’s assessed value. It cannot reduce assessed value below market value, so confirm how the county will apply the math to your situation.
Renting before buying
If you sell and rent for a period before buying your next Florida home, you may still be able to transfer your portability benefit when you establish a new homestead later. Time frames and filing conditions apply. Check the current rules with the county before you finalize plans.
Moving across Florida
Portability is statewide. You can transfer the SOH benefit from any Florida county to any other Florida county, including to or from Palm Beach County. Moves from outside Florida are not eligible.
How to apply in Palm Beach County
Portability is administered by the Palm Beach County Property Appraiser and is typically filed together with your new homestead application.
Step-by-step filing checklist
- Establish your new Palm Beach County home as your permanent Florida residence and apply for the homestead exemption.
- File the homestead application for the new property with the county.
- Submit the portability application or the portability section of the homestead form. State form DR-501 or the county’s current equivalent is commonly used.
Documents to gather
- Prior property parcel ID and your most recent tax bill showing market and assessed values.
- Proof of sale or transfer of your prior homestead, if applicable, such as a closing statement or deed.
- Proof of Florida residency and domicile, such as a Florida driver license or ID card with the new address, voter registration, and vehicle registration.
- Photo ID and deed or other proof of ownership for the new property.
Timing and deadlines
Florida’s homestead rules are tied to January 1 residency. If you move midyear, portability is what lets you carry your SOH benefit to the new home rather than starting over. Many counties use a March 1 filing deadline for the homestead application. Ask the Palm Beach County Property Appraiser about current deadlines and whether late filings are allowed.
Avoid common pitfalls
- Portability is not automatic. You must apply for it. The SOH cap stays with the property until you transfer the benefit.
- You can only have one Florida homestead for property tax purposes.
- Portability lowers your assessed value, but millage rates are set separately by taxing authorities. Your final tax bill depends on both taxable value and the year’s millage rates.
- If your portability amount is very large, state caps might limit what you can transfer. Confirm before you budget.
- Complex situations, such as estate issues, multiple properties, or unusual ownership structures, may benefit from advice from a property tax professional or attorney.
Local next steps
- Gather your prior homestead tax bill, parcel number, and closing documents now, even before you list or write an offer.
- Verify your ownership and occupancy dates, and update Florida IDs and voter registration as soon as you move.
- Call the Palm Beach County Property Appraiser to confirm the exact forms and the current filing window for portability and homestead.
- If you expect a significant portability amount or have special circumstances, consider consulting a local property tax professional.
If you are planning a move in Palm Beach Gardens or anywhere in Palm Beach County, you deserve a smooth path to your next home and clear answers about taxes. For guidance on timing your sale and purchase, coordinating documents, and navigating local steps, reach out to Roxana Campbell. I am here to help you move with confidence.
FAQs
What is Florida homestead portability and why it matters in Palm Beach Gardens?
- It lets you transfer the Save Our Homes assessment difference from your prior Florida homestead to your new homestead, which can lower your assessed value and property taxes.
How can I estimate my portability amount before buying in Palm Beach County?
- Compare your prior home’s market value to its SOH-capped assessed value on the last tax bill; the difference is a rough estimate, then confirm any state caps with the county.
Can I transfer my SOH benefit if I sell my Palm Beach Gardens home and rent for a while?
- Possibly, since portability may be available when you later establish a new Florida homestead; ask the county about current time limits and filing conditions.
What if my portability amount is larger than my new home’s value difference?
- The benefit cannot reduce assessed value below market value, and state caps may apply; the county will calculate the allowable transfer for your case.
Do I need to reapply for homestead when I move within Palm Beach County?
- Yes, you must file a new homestead application for your new primary residence and submit portability paperwork to transfer your SOH benefit.
Does portability change my tax rate or school-related taxes in Palm Beach County?
- No, portability reduces assessed value; millage rates are set separately by taxing authorities, so your final bill reflects both the taxable value and those rates.
