Florida Homestead Exemption & Save Our Homes Guide
The homestead exemption and Save Our Homes cap are two of the biggest financial advantages of owning a home in Florida. Together, they can save Valrico homeowners thousands every year in property taxes — but only if you file correctly and understand how the system works.
The Short Version
If you own a home in Valrico (or anywhere in Florida) and it's your primary residence, you need to know these three things:
- Homestead Exemption: Reduces your assessed value by up to $50,000 — saving you roughly $1,000 to $1,300 per year in property taxes on a typical Valrico home.
- Save Our Homes: Caps your annual assessment increase at 3% or CPI (whichever is lower), even if your market value jumps 15% in a year. The longer you own, the more you save.
- Portability: When you sell and buy another Florida home, you can transfer up to $500,000 of your Save Our Homes benefit to the new property using form DR-501T.
- Deadline: File by March 1 through the Hillsborough County Property Appraiser. Missed it? You have a 3-year lookback window to file retroactively.
What Is the Florida Homestead Exemption?
The homestead exemption is a constitutional tax break for Florida homeowners who use the property as their primary residence. It reduces the taxable assessed value of your home by up to $50,000.
Here's how the $50,000 breaks down:
First $25,000 — Applies to All Tax Levies
The first $25,000 of the exemption applies to all property taxes, including school district taxes. This kicks in on the first $25,000 of your home's assessed value.
Next $25,000 — No Exemption
The assessed value between $25,001 and $50,000 gets no exemption. You pay full taxes on that portion.
Second $25,000 — Non-School Taxes Only
The assessed value between $50,001 and $75,000 gets an additional $25,000 exemption, but only for non-school taxes (county, city, water management district). This second exemption was added by Florida voters in 2008.
For a Valrico home assessed at $400,000, the exemption means you pay taxes on roughly $350,000 instead. According to the Hillsborough County Property Appraiser, this saves most homeowners between $1,000 and $1,300 annually depending on the combined millage rate.
What Is Save Our Homes?
Save Our Homes is an amendment to the Florida Constitution passed by voters in 1992. It limits how much the assessed value of your homestead property can increase each year to the lesser of:
- 3%, or
- The Consumer Price Index (CPI) change for the year
This is where the real savings happen for long-term homeowners. While your home's market value might jump 10% or 15% in a hot year, your assessed value can only go up 3% at most.
Example: Save Our Homes in Action
Say you bought a Valrico home in 2018 with a just market value of $300,000. By 2026, the market value has risen to $475,000. Without Save Our Homes, you'd pay taxes on $475,000.
With Save Our Homes, your assessed value has been capped at ~3% per year. After 8 years of capped increases, your assessed value might be around $380,000 — a gap of roughly $95,000 between assessed and market value.
That $95,000 gap means you're saving roughly $1,900+ per year in property taxes compared to a new buyer of the same home. The longer you own, the wider the gap grows.
What Happens When You Sell?
When you sell your homestead property, the Save Our Homes cap resets. The new buyer's assessed value starts at the full purchase price (market value). All those years of capped increases you enjoyed? Gone for the new owner — they start fresh.
This is why property taxes can jump significantly for a new buyer compared to what the previous owner was paying. A Valrico home that the prior owner paid $3,500 per year in taxes on might cost the new buyer $6,000+ for the exact same house — because the assessment resets.
Important for sellers: this doesn't affect your sale price. Save Our Homes is a tax benefit, not a lien. But it's something every buyer needs to factor into their budget, and Barrett makes sure buyers understand the real tax picture before making an offer.
Have Questions About Your Property Taxes?
Barrett Henry has 23+ years of real estate experience and helps Valrico homeowners understand homestead exemptions, portability, and tax strategy. Straight answers, no pressure.
How Does Homestead Portability Work?
Portability is the mechanism that lets you transfer your Save Our Homes benefit from one Florida homestead to another. Florida voters approved portability in 2008, and it's one of the most valuable — and most misunderstood — tax benefits available.
You can port (transfer) up to $500,000 of the difference between your assessed value and market value. The math works differently depending on whether you're buying a more expensive or less expensive home.
Upsizing (New Home Costs More)
If you're buying a more expensive home, you transfer the full dollar amount of your Save Our Homes benefit. Example: if you had $95,000 in accumulated savings, you subtract $95,000 from the new home's assessed value. A $500,000 new home would be assessed at $405,000.
Downsizing (New Home Costs Less)
If you're buying a less expensive home, you transfer a proportional amount. The formula: (SOH benefit / old market value) x new market value. Example: $95,000 benefit on a $475,000 home = 20% savings. Buy a $350,000 home, and you port 20% = $70,000 off the new assessed value.
Portability works anywhere in Florida — you can move from Valrico to Jacksonville, Naples, or Pensacola and keep your benefit. You must file within 3 years of leaving your old homestead. Use form DR-501T (Transfer of Homestead Assessment Difference) and file it with the property appraiser in the county where your new home is located.
What Are the Filing Deadlines?
Getting the timing right matters. Miss the deadline and you could lose a year of tax savings — or more.
March 1 — Annual Filing Deadline
The homestead exemption application (form DR-501) must be filed by March 1 of the tax year you want the exemption to apply. If you close on a Valrico home in January, file immediately — don't wait.
3-Year Lookback Window
Forgot to file? Florida allows a late filing for up to 3 prior tax years. You'll need to prove you were eligible during those years (primary residence, Florida ID showing the address). Contact the Hillsborough County Property Appraiser to file retroactively.
Portability — 3-Year Transfer Window
You must establish a new homestead and file for portability within 3 calendar years of January 1 of the year you abandoned the old homestead. After 3 years, the benefit expires permanently.
January 1 — Assessment Date
Your homestead status is determined as of January 1 each year. You must own and occupy the home as your primary residence on January 1 to receive the exemption for that tax year.
How to File for Homestead Exemption in Hillsborough County
Filing is straightforward. Here are the 6 steps for Valrico homeowners.
1. Close on Your Home
The deed must be recorded in your name with the Hillsborough County Clerk of Court. This happens automatically at closing.
2. Update Your Florida ID
Get a Florida driver's license or state ID showing your new Valrico address. The property appraiser uses this to verify primary residence. You'll also want to update your vehicle registration.
3. Visit hcpafl.org or the HCPA Office
The Hillsborough County Property Appraiser accepts online applications at hcpafl.org. You can also apply in person at their Tampa office. Online is faster.
4. Complete Form DR-501
This is the standard homestead exemption application. You'll provide your name, property address, Social Security number, and proof of residency (FL ID, deed, utility bill).
5. File Form DR-501T (If Porting)
If you're transferring Save Our Homes benefit from a previous Florida homestead, file form DR-501T at the same time. You'll need the parcel number and county of your old property.
6. Confirm Approval
The HCPA will process your application and send confirmation. Your TRIM (Truth in Millage) notice in August will reflect the exemption. If something looks wrong, contact the HCPA before the September deadline to dispute.
Buying or Selling in Valrico?
Barrett Henry helps Valrico buyers and sellers navigate homestead exemptions, portability, and every other detail that affects your bottom line. 23+ years of real estate experience. No fluff, no runaround.
Frequently Asked Questions
How much does the Florida homestead exemption save Valrico homeowners?
The homestead exemption reduces your assessed value by up to $50,000. On a typical Valrico home, that saves roughly $1,000 to $1,300 per year in property taxes depending on the combined millage rate.
What is the Save Our Homes cap in Florida?
Save Our Homes is a 1992 constitutional amendment that limits annual assessment increases to the lesser of 3% or the Consumer Price Index (CPI). This protects long-term homeowners from rapid tax increases even when market values rise sharply.
What is homestead portability in Florida?
Portability lets you transfer up to $500,000 of your Save Our Homes benefit from your old Florida homestead to a new one. You must file within 3 years of abandoning the old homestead using form DR-501T with the new county's property appraiser.
When is the deadline to file for homestead exemption?
March 1 of the tax year you're applying for. Florida also allows a 3-year lookback — you can file late and receive the exemption retroactively for up to 3 prior years if you were eligible.
Can I lose my homestead exemption if I rent out my home?
If you rent out the entire home and it's no longer your primary residence, yes — you lose the exemption and your assessed value resets to full market value. Renting a room while still living there typically doesn't disqualify you.
How do I file for homestead exemption in Hillsborough County?
File through the Hillsborough County Property Appraiser at hcpafl.org. You'll need your recorded deed, Florida ID showing the property address, and Social Security number. You can apply online or in person.
Official Resources
- Hillsborough County Property Appraiser (HCPA) — File homestead exemption, look up parcel info, check assessed values
- Florida DOR — Property Tax Forms — DR-501 (homestead application), DR-501T (portability transfer)
- HUD Housing Counseling: 1-800-569-4287
Talk to Barrett
Have questions about homestead exemptions, portability, or how property taxes affect your buying or selling decision? Barrett Henry has 23+ years of real estate experience and knows Valrico inside out.
Call (813) 733-7907Email Barrett