Rules reviewed October 6, 2026. The 2026 Save Our Homes assessment limit is 2.7%. Dollar examples below are MFR calculations, not county tax estimates.
Florida Save Our Homes limits annual increases in the assessed value of an eligible homestead to the lower of 3% or the applicable Consumer Price Index change. It limits the assessment used in calculating property taxes. It does not freeze market value or guarantee that the total tax bill will rise by no more than that percentage.
That distinction explains two common surprises: a longtime owner can have a much lower assessment than a recent buyer next door, and an owner can see assessed value rise even when the home’s market value falls. The useful starting point is the assessment record, not the percentage change in the final bill.
Key takeaways
- 2026 limit: 2.7% for the ordinary annual reassessment of a qualifying homestead.
- Starting point: the annual cap begins in the year after the home first receives homestead exemption.
- Falling values: a market decline does not necessarily reduce assessed value, but assessed value cannot exceed just value.
- Separate calculation: exemptions and tax rates determine the tax on the capped assessment.
- Changes matter: a sale, loss of homestead or new improvement can affect the assessment outside the ordinary annual limit.
How the Save Our Homes assessment cap works
For an existing, continuously eligible homestead with no ownership changes, additions or other adjustments, the annual calculation starts with the prior assessed value. Apply the year’s cap, then compare the result with current just value. The assessment cannot be higher than just value. Section 193.155(1) and (2), Florida Statutes, establishes that framework.
Simplified annual assessment = the lower of current just value or prior assessed value × (1 + annual cap).
This formula is a review tool for a straightforward property record. It is not a substitute for the appraiser’s treatment of new construction, changes in ownership or other statutory adjustments.
Just value, assessed value and taxable value
The Florida Department of Revenue’s homebuyer guide distinguishes three values:
- Just value: the property appraiser’s market-value assessment.
- Assessed value: the value after applicable assessment limitations or adjustments.
- Taxable value: assessed value less the exemptions applicable to a particular taxing authority.
The difference between just and assessed value is the accumulated Save Our Homes benefit. It is not cash, home equity or an exemption amount to subtract a second time. School and non-school taxable values can differ, so one taxable-value figure should not automatically be applied to every line of the bill.
The 2026 assessment cap is 2.7%
The Jacksonville Property Appraiser’s annual table and the Sarasota County Property Appraiser’s table report a 2.7% limit for 2026, compared with 2.9% for 2025. The statutory formula uses the applicable CPI change for the preceding calendar year. It is not a forecast of inflation during the assessment year.
For a prior assessment of $400,000, multiplying by 1.027 produces $410,800. That is the capped result before checking the current just-value ceiling and any property-specific adjustments. A published 2026 rate should not be carried forward as an assumed 2027 rate.
When protection begins
The first year the property receives homestead exemption is its base year. The annual limitation begins the following year. A qualifying portability transfer can affect the initial assessment, but ordinary annual cap protection and portability are separate questions.
For example, a home first receiving homestead exemption for 2026 enters the annual cap cycle in 2027. Its owner should verify both the exemption year and the starting assessed value. The date an application was processed is not, by itself, a reliable substitute for the exemption year shown in the county record.
Miami-Dade’s Save Our Homes overview explains this base-year sequence. Owners should confirm eligibility and application requirements with the county property appraiser rather than assume the benefit follows automatically from buying a primary residence.
MFR analysis: rising and falling home values
The following scenarios begin with the same prior just value of $600,000 and prior assessed value of $400,000. Each assumes continuous homestead eligibility, unchanged ownership, no improvements and the 2026 cap of 2.7%.
| Scenario | New just value | New assessed value | Remaining SOH difference |
|---|---|---|---|
| Market value rises | $650,000 | $410,800 | $239,200 |
| Market value falls but remains above assessment | $550,000 | $410,800 | $139,200 |
| Market value falls below the prior assessment | $390,000 | $390,000 | $0 |
Method: calculate $400,000 × 1.027 = $410,800, then use the lower of that result or the new just value. Subtract assessed value from just value to find the remaining assessment difference.
In the first scenario, the market increase expands the gap protected from immediate assessment. In the second, the owner still has a $139,200 difference even though the assessment rises and the market falls. In the third, the just-value ceiling reduces the assessment below the previous year’s $400,000.
What recapture means
The second scenario illustrates what is commonly called recapture: assessed value continues to move upward within the annual limit while just value declines but remains higher. It does not mean the owner owes a penalty or must repay prior tax savings.
The Department of Revenue’s Save Our Homes guide explicitly notes that assessed value can increase despite a decline in home value, while never exceeding just value.
A homeowner reviewing a falling market should therefore ask two questions: Is the new just value supportable, and was the assessment limitation applied correctly? A market decline alone does not answer the second question. Comparing this year’s just value only with last year’s just value misses the assessment gap that drives the result.
Why taxes can rise faster than the assessment cap
Save Our Homes controls one input to the tax calculation. Taxing authorities set millage rates, and exemptions affect the taxable amount. Non-ad valorem charges require a separate review because they are not calculated simply by multiplying property value by a millage rate.
Even with an unchanged rate, the percentage increase in taxable value can exceed the percentage increase in assessed value when a fixed exemption is subtracted from both years. This is arithmetic, not a failure of the assessment cap.
| Measure | Prior year | Same rate | Higher rate |
|---|---|---|---|
| Assessed value | $400,000 | $410,800 | $410,800 |
| Assumed fixed exemption | $25,000 | $25,000 | $25,000 |
| Taxable value for this levy | $375,000 | $385,800 | $385,800 |
| Assumed millage | 5.0 | 5.0 | 5.2 |
| Tax for this levy | $1,875.00 | $1,929.00 | $2,006.16 |
| Increase from prior year | Not applicable | 2.88% | About 7.00% |
Method: taxable value ÷ 1,000 × millage. One mill is $1 per $1,000 of taxable value. The $25,000 exemption and rates are controlled assumptions for this single-levy illustration, not a statement of every exemption or rate available to a particular homeowner.
The assessment increases 2.7% in both new-year columns. At the unchanged rate, the tax rises 2.88%. Raising the rate to 5.2 mills produces an increase of approximately 7% relative to the prior year. A complete budget must calculate the actual levies and exemptions separately, then account for other charges.
What a buyer should know about reassessment
A buyer should not use the seller’s tax bill as a long-term ownership-cost estimate. A sale generally triggers reassessment at just value on January 1 of the following year. The buyer’s own exemption eligibility and any qualifying portability benefit then matter.
The Department of Revenue’s first-time homebuyer guidance explains why a bill in the purchase year may still reflect the former owner’s benefits. That bill can create a misleading impression of future costs.
Before relying on an estimate, identify which assessment year it describes, whether it includes a reassessment and whose exemptions it assumes. Ask for the assumptions behind the number. A listing’s tax history is useful background, but it does not answer those questions.
A purchase-year timeline
Consider a buyer who closes in October 2026 and qualifies for homestead exemption for 2027. The 2026 tax bill may still reflect the seller’s assessment. Reassessment generally occurs on January 1, 2027, with any eligible portability adjustment considered separately. The ordinary annual cap then begins in 2028, using that year’s published limit.
This timing is why a buyer should request a post-reassessment estimate rather than simply divide the seller’s current bill by 12. An escrow payment based on the old bill can understate the amount needed for a later tax year.
Improvements, title changes and loss of homestead
Under section 193.155(3) and (4), ownership changes and improvements have their own rules. New improvements are generally assessed at just value on the first January 1 after substantial completion. Certain replacements after damage receive special treatment.
Some title transfers qualify for exceptions, including specified transfers between spouses. It is unsafe to assume that every deed change resets the cap, or that putting a home into an entity automatically preserves it. Confirm the proposed transaction with the appraiser and an appropriate legal adviser before changing title.
Loss of homestead can also remove the benefit. Owners changing how a property is occupied or rented should report the relevant circumstances to the appraiser. A broad rental rule cannot resolve every partial-use, timing or eligibility situation.
The separate role of portability
Save Our Homes builds an assessment difference while an eligible owner holds a homestead. Portability concerns transferring an eligible portion of that difference to another Florida homestead. The maximum transferable amount, qualification dates and downsizing calculation require a separate review. MFR’s Florida homestead portability guide covers those moving decisions and application requirements.
An annual assessment review checklist
- Confirm the parcel and exemption year. Make sure the notice describes the correct property and shows the expected homestead status.
- Compare assessed values. Calculate the year-over-year change, then identify any additions or ownership adjustments that explain a result above the ordinary cap.
- Review just value separately. Check the property characteristics and market evidence used to support it.
- Check each taxable value and rate. Separate assessment changes from exemption and millage changes.
- Review other charges. Do not treat every item on the bill as a percentage of assessed value.
- Act on the notice’s deadlines. Contact the appraiser promptly about errors and follow the applicable review or petition process.
The MFR guide to Miami-Dade TRIM notices explains the annual notice review. Keep existing assessment rules separate from the proposed Florida property-tax amendment; a policy proposal should not be included as an enacted benefit in a household budget.
Frequently asked questions
Is Save Our Homes the same as the homestead exemption?
No. The homestead exemption reduces taxable value. Save Our Homes limits annual growth in assessed value after the homestead base year. Both can affect the same property, but they operate at different stages of the calculation.
Is the Florida Save Our Homes cap always 3 percent?
No. The annual limit is the lower of 3 percent or the applicable Consumer Price Index change. The limit for the 2026 assessment year is 2.7 percent. Future annual limits should be checked against the official published figure.
Can assessed value rise when market value falls?
Yes. If just value remains above the capped assessment, assessed value can still increase by the annual limit. This is commonly called recapture. Assessed value cannot exceed just value.
Does the cap limit the total property-tax bill?
No. Taxable values, exemptions, millage rates and non-ad valorem charges determine the bill. A percentage limit on assessed value does not impose the same percentage limit on taxes.
Does a newly purchased home keep the previous owner’s assessment?
Generally, a sale triggers reassessment at just value on January 1 of the following year. A qualifying buyer may have a separate portability benefit from a previous Florida homestead. The seller’s assessment should not be used as the buyer’s long-term tax budget.
Will a home addition stay within the annual cap?
Generally, the added improvement is assessed at just value on the first January 1 after substantial completion. This can make the total assessment increase exceed the annual cap. Statutory exceptions apply, including certain replacements after damage.
Sources and methodology
MFR checked the linked Florida statute, Department of Revenue guidance and official county property-appraiser pages on October 6, 2026. The scenario tables are original MFR calculations using stated assumptions. They do not describe surveyed properties, forecast home prices or quote a county tax bill.
The assessment table isolates the annual cap and just-value ceiling. The tax table isolates the effect of a fixed exemption and changing millage for one hypothetical levy. Actual results depend on the property record, eligible exemptions, taxing districts and other adjustments.
This article provides general information, not individualized legal or tax advice. The county property appraiser determines eligibility and assessment treatment.
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