Thursday, May 30, 2019 / by Andy Mandel
Homestead portability will save you a lot in property taxes. Here’s what you need to know.
Homestead portability is part of Florida’s 1992 Save Our Homes amendment. This portability lets you carry over the lower tax base of your current homesteaded property to the next one. Here’s an example.
I have a client who bought a home in Coral Springs in 1991 for $120,000. It’s on the market today for $380,000, and their current tax is around $3,000 a year. When they sell, they’re going to move to a cheaper property that costs around $250,000. They’ll be able to use the tax break from the homestead exemption on their new property; the taxes will go down to $1,600 a year.
If they didn’t have portability, they would’ve had higher taxes for the last 20 years they owned the property. In addition, the taxes on the new property would be $3,600 per year. It’s a substantial tax savings that accumulates over the years.
How do you calculate your portability? When you go to your specific property on the appraiser website, click the portability calculator/estimator. It’ll ask you a few questions and you’ll find out your portability amount as well as what your new taxes will be if you upsize or downsize to a new home.
I highly encourage you to check out the calculator, and if you have any questions or would like to learn more about portability, feel free to reach out to me. I look forward to hearing from you soon.