Florida Save Our Homes Cap 2026: How Your Property Taxes Are Capped After You Buy

What Is the Florida Save Our Homes Cap and Why Does It Matter?

Florida's Save Our Homes amendment is a constitutional protection that limits how much the taxable assessed value of your homestead property can increase each year. Passed by voters in 1992 and effective since January 1, 1995, it caps annual assessed value increases at 3% or the Consumer Price Index (CPI), whichever is lower.

This cap matters enormously in Tampa Bay's appreciating market. Without Save Our Homes, your property tax bill could climb 10%, 15%, or even more in a single year when local real estate values surge — exactly what happened across the region from 2020 through 2023. With Save Our Homes, that annual increase is locked to a fraction of market growth, keeping your home financially sustainable to own year after year.

For first-time buyers, Save Our Homes is one of the most powerful long-term financial benefits of Florida homeownership. It's free, automatic once you file for homestead exemption, and compounds dramatically over time. Understanding how it works before you close means no surprises on your first tax bill.

What Is the 2026 Save Our Homes Cap Percentage?

The Save Our Homes cap adjusts each year based on the trailing Consumer Price Index figure. For the 2026 tax year, the cap is 2.7% — below the 3% ceiling because CPI came in under that threshold. The 2025 cap was 2.9%.

Here's what that means in dollars. If your home is assessed at $360,000 when you purchase, and market values in your neighborhood rise 11% the following year, your assessed value can only increase by 2.7% — to $369,720. Without Save Our Homes, you'd be paying taxes on $399,600 or more. The difference in your annual tax bill from that single year's cap alone could be several hundred dollars.

The protection compounds year over year. A homeowner who purchased at $300,000 assessed value and stayed through a decade of 2-3% annual caps could have a market value well above $400,000 while still paying taxes on an assessed value under $380,000. That growing gap between market value and assessed value — called accumulated Save Our Homes benefit — translates to real tax savings every single year.

Why Are the Seller's Property Taxes Lower Than What You'll Pay?

This is the most common financial shock for Tampa Bay first-time buyers: you see the seller's annual property tax bill, use it to estimate your costs, and then your first full-year tax bill arrives hundreds or thousands of dollars higher than expected.

The explanation is Save Our Homes. The seller has owned the property for years, accumulating protection that keeps their assessed value capped well below current market value. When you purchase the home, the assessed value resets to the purchase price for your first tax year. You start fresh with no inherited cap — your assessed value equals what you paid, not what the seller's capped value was.

Your Save Our Homes protection then begins building from that new baseline. By years three, four, and five, the gap between your assessed value and market value grows in your favor — exactly as it did for the seller who lived there before you.

Before making an offer, ask your agent to pull the current assessed value and the applicable millage rate for that parcel so you can calculate a realistic first-year tax estimate. This is one of the mistakes Tampa Bay first-time buyers most commonly make — and one of the easiest to avoid with the right preparation. Barrett Henry, REALTOR® with REMAX Collective, walks every buyer through this calculation before they submit an offer. Call (813) 733-7907 or check your eligibility for a free buyer consultation.

How Does Save Our Homes Portability Work?

Florida's portability provision allows homeowners to transfer their accumulated Save Our Homes benefit to a new Florida homestead — protecting the tax advantage you've built over years of ownership.

If you sell a home where your assessed value is $90,000 below current market value, that $90,000 of accumulated benefit can be transferred to your next Florida homestead (up to a maximum of $500,000 transferred). The portable benefit lowers your new home's assessed value from day one, so you're not starting entirely from scratch.

To claim portability, file Form DR-501T alongside your standard homestead exemption application with your county property appraiser. The deadline is March 1st of the year following your purchase. You must file within three tax years of establishing your new homestead — miss that window and the benefit is permanently lost.

If you're a first-time buyer moving from out of state, portability does not apply — there's no previous Florida homestead to port from. But you gain full Save Our Homes protection from the moment your homestead exemption is approved, with your cap taking effect the following January 1st. Buyers purchasing new construction should also read about the year-two property tax jump — new builds often have artificially low first-year assessments that spike sharply in year two, separate from the Save Our Homes mechanics.

How Do You Activate Save Our Homes Protection After Closing?

Save Our Homes protection is not automatic — it's tied to your Florida homestead exemption, which you must apply for. The process is straightforward:

1. Record your deed with the county clerk after closing.
2. Establish Florida residency — update your driver's license, voter registration, and vehicle registration to your new address.
3. File Form DR-501 with your county property appraiser before March 1st of the year following your purchase. Hillsborough County buyers file with the Hillsborough County Property Appraiser; Pinellas County buyers file with the Pinellas County Property Appraiser.
4. Receive approval — typically by summer before your November tax bill.

From the following January 1st, Save Our Homes protection is active. Your assessed value can never rise by more than 3% or CPI (whichever is lower) for as long as you maintain the property as your primary Florida residence. For step-by-step filing instructions specific to Tampa Bay counties, see the complete Florida homestead exemption filing guide. And if you believe your assessment is already too high in year one, Florida law gives you the right to appeal — the property tax appeal guide explains how.

Ready to Buy with the Full Financial Picture?

Florida's Save Our Homes cap is just one of dozens of financial protections and programs available to Tampa Bay first-time buyers. Stacked alongside Florida Hometown Heroes, FHA loans, and county down payment assistance, the long-term economics of homeownership here are stronger than most renters realize.

Barrett Henry, REALTOR® with REMAX Collective, brings 23+ years of real estate experience to every buyer consultation — including walking you through realistic property tax projections, program eligibility, and every step from pre-approval to closing. Call (813) 733-7907 or get personalized help today to start your home buying journey with confidence.