Florida homestead portability: transfer of SOH differential (up to $500,000)

Principle: take your SOH savings with you

Without portability, selling a homestead with AV well below JMV (thanks to years of SOH 3% capping) means the new residence restarts at AV = JMV with an immediately higher tax bill. Many owners hesitated to move for this reason.

2008 Amendment 1 (codified F.S. §193.155(8)) solves this by allowing transfer of the SOH differential (= JMV − AV) to the new homestead.

Transfer mechanics

Two scenarios:

1. Upsizing (new is more expensive)

If new JMV ≥ old JMV:

• Transferred differential = old JMV − old AV, capped at $500,000.
• New AV = new JMV − transferred differential.

2. Downsizing (new is cheaper)

If new JMV < old JMV:

• Differential percentage = old differential ÷ old JMV.
• Transferred differential = percentage × new JMV.
• New AV = new JMV − transferred differential.

$500,000 cap

The transferable differential is capped at $500,000, regardless of accumulated value. In hot FL markets (Naples, Miami Beach, Sarasota) where SOH differentials can exceed $1M after 15-20 years, this cap binds. The surplus beyond $500K is lost at sale.

3-year window (since 2021)

2020 Amendment 5 (ratified) extended the portability window from 2 to 3 tax years, effective January 1, 2021. Time calculation:

• Year of abandonment = year homestead is lost on the old (sale, long-term rental, move).
• You have until January 1 of the 3rd year after to establish and have the new homestead approved with portability.

How to apply (Form DR-501T)

1. File homestead application Form DR-501 with the new-county PA before March 1 (Monday March 2, 2026).
2. Attach Form DR-501T (Transfer of Homestead Assessment Difference) which asks for:
   • Old homestead address
   • Old homestead county
   • Parcel number
   • Date of abandonment
   • Co-owners if applicable (portability is allocated pro rata to homestead interests)
3. The new PA contacts the old PA to confirm the SOH differential.
4. Approval shows on the assessment roll (August TRIM Notice).

Special cases

• Unmarried co-owners: differential split by interest.
• Married couple selling joint homestead, buying separately: each spouse may take their half.
• Married couple separating/divorcing: special rule, spouses can negotiate division by agreement or judgment.
• Old homestead kept but long-term rented: homestead abandoned the first year of rental ≥ 30 days for 2 consecutive years (F.S. §196.061).
• Out-of-Florida: portability only works within Florida. Selling in FL to buy in GA, NC or elsewhere = total loss of differential.

For Canadians: not directly applicable

Portability requires homestead eligibility, which requires LPR or USC status. A Canadian snowbird without a green card never has homestead, so never has an SOH differential to transfer.

Hybrid scenario: a Canadian who obtains a green card (EB-5, marriage, etc.), establishes homestead and moves 10 years later within Florida can then use portability like any LPR.

Formulaires officiels et pages de référence

• Form DR-501 — Original Application for Homestead
• Form DR-501T — Transfer of Homestead Assessment Difference
• F.S. §193.155(8) — Portability of SOH differential
• FL Constitution Art. VII §4(d)(8)