Save Our Homes Cap Explained: How It Protects Florida Homeowners from Rising Property Taxes

Florida homeowners benefit from one of the strongest property tax protections in the country: the Save Our Homes amendment. If you own a homesteaded property in Manatee County, Sarasota County, or anywhere in Florida, this constitutional provision directly limits how much your property tax assessment can increase each year — even when the real estate market is surging. John Belt with Keller Williams On The Water walks clients through how Save Our Homes works and why it becomes more valuable the longer you own your home.

What Is the Save Our Homes Amendment?

The Save Our Homes amendment was passed by Florida voters in 1992 and is codified in Article VII, Section 4 of the Florida Constitution. It caps the annual increase in your homestead property's assessed value at 3 percent or the change in the Consumer Price Index (CPI), whichever is lower. This cap applies only to the assessed value for tax purposes — your property's market value can still rise as much as the market dictates. The difference between your capped assessed value and the actual market value is known as your Save Our Homes benefit, and it grows over time as home values appreciate faster than the cap allows.

How the Cap Works in Practice

Suppose you purchased a home in Bradenton five years ago for $350,000. Each year, the property appraiser determines the home's just (market) value, but your assessed value can only increase by up to 3 percent per year. If your home's market value has grown to $500,000 over those five years, your assessed value might only be around $405,000. You would pay property taxes on $405,000 rather than $500,000 — a difference of $95,000 in taxable value. At a typical millage rate, that could translate to roughly $1,500 to $2,000 per year in tax savings.

The cap resets when a property changes ownership. When you sell your home, the new owner's assessed value starts at the full market value as of the purchase date. This reset is why longtime Florida homeowners often have significantly lower tax bills than their neighbors who purchased more recently, even for identical homes.

When the Cap Takes Effect

The Save Our Homes cap takes effect on January 1 of the year following the year you first receive the homestead exemption. If you purchase a home and file for homestead exemption in 2026, the cap begins protecting you on January 1, 2027. During your first year of ownership, your assessed value equals your home's just value. After that, the cap limits annual increases going forward.

The 2026 Proposed Constitutional Amendment

Florida's 2026 special legislative session produced a joint resolution (HJR 1-F) that would amend Article VII of the Florida Constitution to significantly expand property tax protections. If approved by at least 60 percent of voters on the November 2026 ballot, the amendment would exempt the first $250,000 of a homestead's value from property taxes for all homeowners. It would also reduce the annual assessment cap on non-homestead properties — including rentals, vacation homes, and commercial properties — from 10 percent to 5 percent, effective January 1, 2027.

This proposed change is one of the most significant property tax reforms in Florida since the original Save Our Homes amendment. Homeowners in Manatee and Sarasota counties should watch the ballot closely, as the impact on annual tax bills could be substantial.

Save Our Homes and the Non-Homestead Cap

While Save Our Homes applies to homesteaded properties, Florida also has a separate 10 percent annual assessment cap for non-homestead properties, which was added by a 2008 constitutional amendment. This cap covers rental properties, second homes, vacant land, and commercial real estate. If the 2026 ballot measure passes, this cap would drop to 5 percent beginning in 2027. Unlike the Save Our Homes cap, the non-homestead cap does not accumulate a portable benefit.

Why Save Our Homes Matters When Buying

Buyers moving to Florida from states without assessment caps often do not realize how significantly Save Our Homes affects long-term housing costs. Two identical homes on the same street can have dramatically different tax bills depending on how long each owner has held the homestead exemption. When evaluating a home purchase, it is important to look at the just value and the current year's assessed value rather than relying on the seller's tax bill, because your taxes will be based on a fresh assessment at the purchase price.

John Belt with Keller Williams On The Water helps buyers in the Bradenton-Sarasota area understand how the Save Our Homes cap will affect their tax bill and how it builds equity in tax savings over the years. Understanding these protections before you buy can help you plan your housing budget more accurately and make smarter long-term decisions.

Protecting Your Save Our Homes Benefit

To maintain your Save Our Homes cap, you must continuously maintain your homestead exemption. If you abandon your homestead — for example, by renting the property, moving to a different primary residence, or failing to renew the exemption — the cap resets. If you sell your homesteaded property, the cap resets for the new buyer, but you may be able to transfer your accumulated benefit to a new Florida homestead through portability.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal or tax advice. Tax rates, exemption amounts, and legislative proposals discussed in this article are subject to change. Consult a qualified Florida attorney or tax professional for advice specific to your situation. For help understanding how property taxes affect your home purchase, contact John Belt with Keller Williams On The Water.