Save Our Homes Cap: Why a Florida Property Tax Appeal Compounds for 10+ Years

The cap that makes Florida property tax appeals different

Florida's "Save Our Homes" amendment (Fla. Const. Art. VII, §4(d), passed 1992) caps annual assessed value increases on homesteaded residential property at 3% or the change in CPI, whichever is lower. In high-inflation years, the cap is 3%. In low-inflation years (CPI <3%), the cap is the lower CPI figure.

This makes Florida property tax appeals more valuable than appeals in most other states. Here's why.

How the cap actually works

When you receive your annual TRIM notice, it shows two numbers:

• Just value — the Property Appraiser's estimate of fair market value
• Assessed value — your tax-effective value, capped at last year's assessed × 1.03 (for homesteaded property)

The just value can rise unlimited. The assessed value is what your tax bill is calculated on, and it can rise no more than 3% per year.

Why a VAB win compounds

When you petition the VAB and win a reduction, the Property Appraiser reduces your just value AND your assessed value. The reduced assessed value becomes your new baseline. Going forward, the 3% cap applies against that lower baseline.

### Example math

Suppose your home is assessed at $400,000 in 2026, but comps support a $325,000 valuation. You file DR-486 and the VAB grants the reduction.

• 2026 assessed value: $400,000 → $325,000 (your win)
• 2026 tax savings: $75,000 × 0.0086 = $645

Over 10 years (assuming 3% annual cap):

• Without appeal: $400K → $537K assessed by 2035
• With appeal: $325K → $437K assessed by 2035
• Difference at end: $100K, generating $860/year in protected savings forever

Total 10-year compound savings: roughly $7,500-$8,500 depending on tax rates.

That's why a single $49 DR-486 packet can return 150x+ over time for a homesteaded Florida property.

What "homesteaded" means

Save Our Homes only applies to homestead properties — your primary, permanent residence in Florida. Eligibility requires:

• You owned the property and lived there as of January 1 of the tax year
• The property is your primary residence (not a rental, second home, or investment property)
• You filed for homestead exemption (Form DR-501) by March 1

If you bought a Florida home in 2026, file Form DR-501 by March 1, 2027 to start getting homestead exemption and Save Our Homes protection.

When the cap "resets"

Two events trigger a Save Our Homes reset:

1. Sale of the property. When the home sells, the assessed value resets to the new buyer's just value at the time of transfer. This is why recent buyers in fast-appreciating markets often see big property tax shocks.

1. Significant addition or improvement. If you build an addition or do a major renovation that adds taxable value, the new addition is assessed at full just value (no cap on the new portion).

The base homestead retains its capped assessed value. Only the new construction is added.

Portability — moving your cap

Florida lets you transfer your Save Our Homes savings to a new homestead. If you sell your $400K home (assessed at $250K under Save Our Homes) and buy a $500K home, you can carry forward the $150K savings — capping the new home at $350K assessed for the first year.

Apply via Form DR-501T at the new home's Property Appraiser office, typically within two years of establishing the new homestead.

Why this matters for appeals strategy

Save Our Homes makes the math of property tax appeals different in Florida from Texas:

• In Texas, a win mostly saves you for the current year (ARB caps reset annually with re-assessment).
• In Florida, a win compounds for as long as you own the home. The 3% cap protects every dollar of reduction you achieve.

This is also why recent buyers and non-homesteaded property owners (investors, vacation homes) often have the strongest appeal cases — they don't have years of Save Our Homes protection built up, so their just value tracks closer to market value.

The bottom line

If you own homesteaded property in Florida and your TRIM notice arrives this August showing an assessment higher than recent comparable sales, you should appeal. The cost is $15 (VAB filing fee) plus your time. The protected savings compound for as long as you own the home.

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