Information Gathered by Realtor Cristina Formosa
Miami-Dade Homestead Exemption (2026): What New Homeowners Need to Know
Many new residents of Miami-Dade County are unaware of one of the most valuable tools available to Florida homeowners: the Homestead Exemption. In 2026, this program remains one of the most effective ways to control long-term property tax growth, especially in a market where values continue to rise.
The Core Benefit: Immediate and Long-Term Tax Savings
The Homestead Exemption allows qualifying homeowners to reduce their home’s taxable value by up to $50,000. While that initial reduction is meaningful, the true advantage lies in the Save Our Homes (SOH) Cap.
The Save Our Homes Cap limits annual increases in a home’s assessed value to the lesser of:
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3% per year, or
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The rate of inflation (this is a recent change)
This protection applies regardless of how much your home’s market value increases, offering long-term predictability and shielding homeowners from sharp tax spikes during strong real estate cycles.
Who Qualifies and When to Apply
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The exemption applies only to your primary residence
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You must own and occupy the home as of January 1
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The filing deadline is March 1
While you can file any time before the deadline, it’s best to apply as soon as possible after closing to avoid delays or missed eligibility.
Given continued appreciation across many Miami-Dade neighborhoods, the Homestead Exemption plays a critical role in keeping property taxes on a sustainable growth path rather than reacting to market volatility year after year.
Portability: A Major Advantage When Buying a New Home
If you already have a Homestead Exemption and plan to move within Florida, you may also qualify for Homestead Portability.
What Is Portability?
Portability allows homeowners to transfer up to $500,000 of their accumulated Save Our Homes benefit from a previous homestead to a new primary residence.
This transferred amount is called the Homestead Assessment Difference, which is the gap between:
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Your prior home’s market value, and
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Its assessed value (after SOH caps)
Example: Upsizing to a More Expensive Home
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Market value of prior home: $1,000,000
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Assessed value: $700,000
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Assessment difference: $300,000
If you purchase a new home with a $1,300,000 market value, you can port the full $300,000, resulting in a starting assessed value of $1,000,000—a substantial tax savings from day one.
Example: Downsizing to a Less Expensive Home
When downsizing, portability is calculated proportionally.
Step 1: Calculate the Cap Ratio
$300,000 ÷ $1,000,000 = 0.30
Step 2: Apply the Cap Ratio to the New Home
0.30 × $800,000 = $240,000 (portable benefit)
Step 3: Determine the New Assessed Value
$800,000 − $240,000 = $560,000 assessed value
This adjusted assessment becomes the new baseline for future Save Our Homes caps.
How to Apply
Miami-Dade County provides a comprehensive online resource that explains eligibility requirements, exceptions, and filing procedures, and allows homeowners to apply digitally:
miamidade.gov/pa/exemptions.asp
Final Thought
Property tax rules can feel overwhelming, especially when paired with a move, a purchase, or a downsizing decision. Working with an experienced Realtor, attorney, or accountant can help ensure you apply correctly, maximize your savings, and avoid costly mistakes.
When structured properly, Florida’s Homestead Exemption and Portability benefits can translate into hundreds of thousands of dollars in long-term tax savings—making them a critical part of any Miami-Dade homeownership strategy.