Understanding Amendment 5: How It Impacts Florida Property Taxes  

Florida’s Amendment 5 property tax changes extend the “Save Our Homes” benefit portability window from two to three years. This allows homeowners to transfer their capped property value (assessed value below market value) to a new primary residence, resulting in significant tax savings. This amendment benefits first-time sellers, downsizing retirees, and investors transitioning to primary residences, offering more flexibility in their home-buying timeline.

What Is Amendment 5?  

Amendment 5 is a Florida property tax law designed to reduce the financial burden on homeowners across the state. Its primary focus is to extend the time allowed for homeowners to transfer their “Save Our Homes” benefits, a critical tax exemption, from one primary residence to another.  

Florida’s Save Our Homes (SOH) benefit caps annual increases in assessed home values at 3% or the rate of inflation, whichever is lower. This means that even when home prices surge, your taxable home value rises slowly. However, prior to Amendment 5, homeowners had only two years to “port” these SOH benefits when buying a new home. Amendment 5 extended this timeline to three years, offering more flexibility to Florida homeowners.  

Why Does Amendment 5 Matter?  

Imagine this: You purchased your first home in Florida 10 years ago, and its taxable value was locked in at $150,000 under the Save Our Homes cap. Over the years, its market value climbed to $300,000, but thanks to the cap, you’re only taxed on $150,000. When you sell this home to move into a new one, you can transfer the $150,000 capped value to your next property, keeping your property tax low.  

Prior to Amendment 5, this benefit expired after two years. Many homeowners missed out simply because the window to buy a new home was too short. With the extension to three years, families have more breathing room to find their perfect property without losing this essential tax benefit.  

Real-World Example: How Amendment 5 Works  

Here’s how Amendment 5 might play out in real numbers:  

Old Home

  • Market Value: $300,000  
  • Assessed Value (thanks to SOH cap): $150,000  

Move-Out Timeline 

  • Under the previous two-year window, you’d risk losing the SOH capped value if you didn’t purchase a new home in time.  

Purchasing a New Home  

  • With Amendment 5, you now have an extra year to buy a replacement home and transfer your SOH savings into your next property.  

Example Savings on New Home 

  • New Home Market Value: $400,000  
  • After “porting” your $150,000 SOH assessed value, your new taxable value = $250,000  

Let’s assume the property tax rate is 2%

  • Without SOH Portability: Taxes = $8,000/year ($400,000 x 2%)  
  • With SOH Portability: Taxes = $5,000/year ($250,000 x 2%)  
  • Annual Savings: $3,000  

Who Benefits Most from Amendment 5?  

Here’s a quick guide to the types of buyers and property owners who can gain the most from the Amendment 5 property tax changes:  

✅ First-Time Sellers  

  • If this is your first home but you’re looking to upgrade, Amendment 5 ensures you don’t lose tax benefits while searching for your ideal next property.  

✅ Retirees Downsizing

  • Planning to sell your family home and move to a smaller space? Amendment 5 ensures you get to carry over tax savings, even if it takes a bit longer to find your dream retirement property.  

✅ Investors Transitioning to Primary Residences  

  • If you’re an investor converting an investment property into your primary residence, the extended portability timeline could be a game-changer.  

✅ Real Estate Professionals Helping Clients Close

  • By educating clients about Amendment 5’s impact, real estate agents can help buyers and sellers maximize their tax advantages, leading to smoother sales and satisfied clients.  

Simple Steps to Leverage Amendment 5  

1. Know Your SOH Savings: 

  • Find out how much your current property’s assessed value is below its market value. This is your “capped value” that can be ported.  
  • Use a property tax savings calculator (many Florida county websites offer one) to estimate how Amendment 5 might impact your taxes.  

2. Time Your Move Wisely: 

  • With three years to transfer your SOH benefits, plan your next home purchase carefully. If you’re still within the deadline, consult your local property appraiser to confirm your eligibility.  

3. Work with a Real Estate Professional:

  • Contact an experienced real estate agent or tax advisor who understands Amendment 5. They can guide you through documentation requirements and deadlines to ensure you maximize your benefits.  

Making Sense of the Financial Impact  

Let’s compare scenarios for added clarity:

Scenario

Without Portability

With Amendment 5

New Property Value $400,000 $400,000
Taxable Value Savings Port $0 $150,000
Final Taxable Value $400,000 $250,000
Annual Taxes (2% Rate) $8,000 $5,000
Annual Savings $0 $3,000

Final Thoughts 

Amendment 5 is more than just a tax law—it’s an opportunity for Florida homeowners to save thousands of dollars, gain more time to make life-changing decisions, and avoid unnecessary financial stress. Whether you’re a first-time homebuyer, an experienced investor, or an industry professional, understanding how this amendment works is essential to staying informed and financially strategic.  

Take the time to calculate your savings, explore your options, and discuss your plans with a knowledgeable real estate expert. If you still have questions or want a closer look at your specific situation, contact your local property appraiser or a trusted real estate advisor today.  

Frequently Asked Questions  

Will Amendment 5 Apply Retroactively? 

Yes! If you sold your home after January 1, 2017, and missed the two-year deadline, you may still qualify under the new three-year rule.  

How Do I Check My Portability Eligibility?

Contact your county property appraiser’s office or visit their website. They provide up-to-date tools, including calculators and guidelines for SOH portability.

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