Constitutional and statutory principle
Article VII §4(d) of the Florida Constitution and F.S. §193.155:
- For any property with the homestead exemption, the annual increase in assessed value cannot exceed the lower of:
- 3% of the prior-year assessed value, OR
- The annual change in the CPI (Consumer Price Index, all urban consumers, U.S. city average) as published by BLS.
- Effective: the year following the year homestead is granted.
- Applied January 1 each year by the county PA.
If JMV decreases (down market), AV may decrease in parallel — SOH is only a ceiling.
Mechanics: 10-year example
| Year | JMV (market) | SOH cap (3%) | AV (lower) | SOH differential |
|---|---|---|---|---|
| 2016 (purchase, homestead) | $300,000 | — | $300,000 | $0 |
| 2017 | $330,000 | $309,000 | $309,000 | $21,000 |
| 2018 | $340,000 | $318,270 | $318,270 | $21,730 |
| 2019 | $360,000 | $327,818 | $327,818 | $32,182 |
| 2020 | $370,000 | $337,653 | $337,653 | $32,347 |
| 2021 | $420,000 | $347,783 | $347,783 | $72,217 |
| 2022 | $510,000 | $358,216 | $358,216 | $151,784 |
| 2023 | $540,000 | $368,962 | $368,962 | $171,038 |
| 2024 | $560,000 | $380,031 | $380,031 | $179,969 |
| 2025 | $580,000 | $391,432 | $391,432 | $188,568 |
| 2026 | $590,000 | $403,175 | $403,175 | $186,825 |
Cumulative savings: at 16 mills, ~$3,000/yr saved by year 10 (on the ~$187K differential).
Note: 2018 and 2024 had CPI < 3%, so effective SOH cap was CPI-limited. Table shows max 3% cap for clarity.
When CPI caps below 3%
The annual CPI-U (U.S. city average) published by the Bureau of Labor Statistics is the second cap. Recent history (Dec/Dec change):
| Year | CPI | Effective SOH (lower) |
|---|---|---|
| 2018 | 1.9% | 1.9% |
| 2019 | 2.3% | 2.3% |
| 2020 | 1.4% | 1.4% |
| 2021 | 7.0% | 3.0% |
| 2022 | 6.5% | 3.0% |
| 2023 | 3.4% | 3.0% |
| 2024 | 2.9% | 2.9% |
| 2025 | ~3.0% | 3.0% |
In high-inflation periods (2021-2023), the 3% SOH cap protects owners strongly. In calm periods, CPI caps even lower.
Events that reset SOH
- Sale of the property — buyer starts AV = JMV unless buyer applies portability from prior homestead. See portability article.
- Change of ownership at death:
- Surviving spouse: keeps the SOH differential.
- Children/heirs: reset unless they were bona fide residents and held homestead in their own right.
- Major improvements (room addition, pool): added value flows into JMV and into AV (not capped by SOH for the added value).
- Loss of homestead (long-term rental, move): SOH disappears; cap reverts to 10% non-homestead the following year.
Who SOH does NOT apply to
- Non-homestead properties (second homes, rentals, vacant land, commercial). 10% cap per F.S. §193.1554 / §193.1555 — see dedicated article.
- Canadian snowbirds without LPR/USC: no homestead = no SOH. 10% non-homestead cap applies.
- The cap does not apply to school taxes on the AV portion between $50,000 and $76,411 (non-school exemption zone only).
Formulaires officiels et pages de référence
Responsabilité du lecteur
Toujours utiliser la dernière version disponible sur le site officiel cité ci-dessous. Les seuils, taux et délais évoluent. CanadaFlorida ne se substitue pas à un professionnel licencié.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Public sources verified as of the last review date (Florida Statutes, Florida Department of Revenue, Citizens, FEMA, DBPR).
- F.S. §193.155 — Homestead property assessments. leg.state.fl.us/§193.155
- Florida Constitution, Article VII §4(d) — Save Our Homes. flsenate.gov/Constitution
- Florida DOR — Save Our Homes (PT-110). PDF DOR
- BLS — Consumer Price Index (CPI-U). bls.gov/cpi