Save Our Homes Cap: Why the Seller's Tax Bill Won't Be Yours
Florida's Save Our Homes cap keeps assessed values from rising more than 3% a year for homesteaded owners — but it resets when the property sells. Learn why your tax bill can jump thousands after closing.
Published 2026-06-09 · 9 min read · Florida Buyer Guides
One of the most common surprises for out-of-state buyers moving to Florida — and even for in-state movers — is the property tax jump after purchase. The seller’s TaxEstimator screenshot showing $3,800/year becomes $6,200/year in your first full tax cycle. The culprit is usually Save Our Homes (SOH), not a county rate hike. Use our [True Cost Calculator](/calculator-learn) to model your post-purchase bill before you offer.
What is the Save Our Homes cap?
Save Our Homes is a [constitutional provision](https://floridarevenue.com/property/Pages/Exemptions.aspx) that limits annual increases in assessed value for homesteaded primary residences to 3% or the change in CPI, whichever is lower. Over a decade or more, a homeowner’s assessed value can drift far below market value — especially in appreciating Tampa Bay neighborhoods like South Tampa, Westchase, or St. Pete’s Old Northeast.
The cap stays with the owner, not the house. When the property sells, assessed value resets to just value (market) as of January 1 following the sale, minus any portable homestead exemption the buyer qualifies for. The buyer inherits the home — not the seller’s tax discount.
A real-world example
Imagine a South Tampa bungalow bought in 2014 for $280,000, now worth $550,000. With SOH, assessed value might sit near $350,000 while market value climbed. At ~18 mills all-in, the seller pays roughly $6,300/year on assessed value — already higher than when they bought, but still below what market implies.
You buy at $540,000 and homestead the property. Next January 1, assessed value aligns much closer to market (minus your $50,000 homestead exemption on the first $500,000 of value). Your bill might land near $8,500–$9,000/year depending on non-ad valorem assessments and city vs county millage — a $2,000+ annual swing that no listing agent highlighted because it was never the seller’s problem.
Homestead exemption vs Save Our Homes
- Homestead exemption: reduces taxable value ($50k off assessed for most Florida counties on primary residence). You must apply and qualify.
- Save Our Homes: limits how fast assessed value grows while you own and live in the home.
- Portability: lets you transfer up to $500,000 of accumulated SOH benefit from a prior Florida homestead to a new one — a partial cushion, not a full erase.
Why Zillow and listing sites get this wrong
Portals often display tax history from the current owner’s bill — which reflects capped assessed value. They rarely project post-sale reset at your purchase price. Some show “estimated taxes” using a flat percentage of list price, which may still miss [CDD fees](/blog/cdd-fees-florida), municipal surcharges, and non-ad valorem lines that Hillsborough and Pinellas load onto the bill.
How to estimate your tax bill before you offer
- Start with purchase price (or expected contract price) as proxy for next year’s market value.
- Subtract homestead exemption if you will occupy as primary residence.
- Apply combined millage rate for the property’s taxing districts (county, city, school, special).
- Add non-ad valorem assessments: CDD, solid waste, stormwater, fire rescue — from the appraiser Tax Estimator.
- Compare side-by-side to seller’s current bill so you know the delta, not just the absolute number.
Impact on affordability and offers
Tax reset increases monthly carrying cost without changing list price. If two homes are priced identically but one carries a long SOH accumulation, the “cheaper” tax line on the listing is misleading — you may afford less house than you think. Factor the reset into your [budget calculator](/budget-learn) before setting max price, and into negotiation if comparable homes without SOH drag sold for less.
See your post-purchase tax bill → — Model Save Our Homes reset using market value and county millage — not the seller’s capped bill.
Frequently asked questions
When does Save Our Homes reset after I buy?
Assessed value resets to market as of January 1 in the year following the sale (with timing nuances for mid-year purchases). Your first bill may be prorated at closing; the full reset shows in the next annual cycle.
Can I use the seller’s tax bill for my lender escrow estimate?
Lenders often initially escrow using current taxes, then adjust when the county re-assesses. Budget for the higher number upfront to avoid escrow shortage notices.
Does Save Our Homes apply to investment properties?
No. SOH and homestead benefits apply only to a primary residence you homestead. Investment and second homes are assessed at full market value annually.
What is portability and do I qualify?
If you sell a Florida homestead and buy another within two years, you may port accumulated SOH savings (up to $500,000 of assessed value benefit) to reduce the reset. File Form DR-501T with the property appraiser.