Your homestead exemption when you sell

What happens to my homestead exemption in the year I sell?

Nothing, for that year. Florida fixes exemption status as of January 1, and the Department of Revenue's guide for first-time buyers says the previous owner's exemption and Save Our Homes benefit stay with the property for the remainder of the calendar year of the purchase. The current year's bill, which arrives in November, still carries your exemption even though the buyer owns the house by then.

The exemption itself takes up to $51,411 off the assessed value of a homestead for 2026: $25,000 against every tax, plus a second amount against non-school taxes on assessed value above $50,000. That second amount has been indexed to inflation since 2025 and is $26,411 this year. A proposed constitutional amendment on the November 3, 2026 ballot would change the non-school portion from 2027 if voters approve it, so check the property appraiser's current figures before you quote one. Save Our Homes, in section 193.155, is the separate cap that limits each year's increase in assessed value to 3 percent or the change in the consumer price index, whichever is lower.

Eligibility is tested on January 1, so watch the calendar if you move out before the closing. The Orange County Property Appraiser lists residing on the property as of January 1 as a condition, so a house you no longer live in on that date does not qualify for the new year even while you still hold title.

Why will the buyer's property taxes be higher than mine?

Because the cap stays with you when the house changes hands. Section 193.155(3) says a property is assessed at just value as of January 1 of the year following a change of ownership, and only after that does the annual cap start again for the new owner.

An example with made-up figures: the property appraiser puts just value at $800,000, and years of the cap hold your assessed value at $520,000. After a 2026 closing, the buyer's January 1, 2027 assessment starts at just value, $800,000 if nothing changes, less the buyer's own homestead exemption if they qualify and apply. Their first bill at the new assessment arrives in November 2027.

Florida law requires every residential contract to carry a property tax disclosure summary for this reason. Section 689.261 tells the buyer not to rely on the seller's current taxes, warns that a change of ownership or improvements trigger reassessment, and points them to the county property appraiser for valuation questions.

How does proration at closing handle my exemption?

The closing statement splits the current year's bill, and that bill is figured with your exemption and your capped assessment. You pay for the days you owned the house and the buyer pays for the rest, so for the remainder of the sale year the buyer's share is still computed at your lower number.

When the bill has not been issued yet, the closing agent estimates it, usually from last year's bill, by the method the contract sets. That estimate describes the year you sold in, not the year after, which is why it is a poor guide to what the buyer will owe.

Can I take my Save Our Homes savings to my next Florida home?

Yes, through portability, up to $500,000 of it. The Seminole County Property Appraiser describes the window as three years from January 1 of the year you abandoned the old homestead, not three years after the sale. If you leave your homestead in 2026, the new one has to be established as of January 1, 2029 at the latest.

Moving up, the math is a subtraction. Suppose, with illustrative figures, the old home had a just value of $700,000 and an assessed value of $430,000 on January 1 of the year you left it, a $270,000 difference. A new homestead with a just value of $900,000 would start at an assessed value of $900,000 - $270,000 = $630,000.

Moving down, section 193.155(8) uses a ratio instead. The new assessed value is the just value of the new home divided by the just value of the old one, times the old assessed value. With a new just value of $500,000, that is $500,000 / $700,000 x $430,000, or about $307,143.

When do I file for portability and the new homestead?

By March 1 of the first tax year you want the benefit. Section 196.011 sets March 1 for exemption applications, and the Orange County Property Appraiser treats a missed deadline as a waiver of the exemption for that year. Portability is not automatic: you file Form DR-501T, Transfer of Homestead Assessment Difference, with the new homestead application or through the property appraiser's online filing.

A late application is possible but narrow. The statute allows filing within 25 days after the property appraiser mails the annual assessment notices, and the property appraiser may grant it for extenuating circumstances. Otherwise the remaining route is a petition to the value adjustment board inside that same 25 days, with a $15 filing fee.

If the new house is in a different Florida county, file both forms with that county's property appraiser, not the one where you sold.

What should a buyer use instead of my tax bill?

The property appraiser's record for the parcel and the current millage. A buyer can take just value, subtract the homestead exemption they expect to qualify for, and apply the millage rates on your latest bill to get a fair estimate of their first full year. Non-ad valorem assessments, such as solid waste or a community development district charge, are listed separately on the bill and are not reduced by the homestead exemption.

Hand over your bill anyway, because it shows those non-ad valorem lines and the taxing authorities. Just tell the buyer's agent which number is yours and which will be theirs. For a question about a specific parcel, the exemption staff at the county property appraiser's office is the place to call; for how the sale fits your wider plans, ask a Florida real estate attorney or a CPA.