Property Tax Changes: What Florida Homeowners Need to Know About Save Our Homes

If you own a home in Florida, you've probably heard about the Save Our Homes benefit. It's one of the most valuable protections for homeowners in the state, but one wrong move can cost you thousands in extra property taxes. Let me walk you through what you need to know.

What Save Our Homes Does for You

When you have homestead status on your primary residence in Florida, Save Our Homes caps how much your property's taxable value can increase each year. No matter how hot the real estate market gets, your assessed value for tax purposes can only go up by 3% annually.

Think about what this means over time. If you bought your home ten years ago and stayed put, you're likely paying significantly less in property taxes than your neighbor who just moved in—even if you have identical houses. That 3% cap adds up to real savings, especially in areas where property values have skyrocketed.

The Problem: Losing Your Protection

Here's where things get tricky. Certain changes to how you own your property will trigger a reassessment. When that happens, your home gets revalued at current market rates, and you lose the benefit of all those years under the 3% cap. Your property tax bill can jump dramatically.

The most common trigger? Changing who's listed on your deed.

Why Adding Your Kids to the Deed Backfires

Many homeowners think they're being smart when they add their children to their property deed. The reasoning goes like this: "If I add my kids now, the house will go straight to them when I pass away. No probate, no hassle, problem solved."

Unfortunately, this creates more problems than it solves—and a higher tax bill is just one of them.

When you add someone to your deed, you've changed the ownership structure. The property appraiser sees this as a change in ownership, which means they'll reassess your home at its current market value. All those years of 3% increases? Gone. You'll start paying taxes based on what your home is worth today, not what it was worth when you first claimed homestead.

Beyond the tax issue, adding children to your deed opens up other concerns:

• Your home becomes vulnerable to your children's creditors
• If a child gets divorced, their spouse might claim an interest in your property
• You can't sell or refinance without all owners agreeing
• Gift tax issues may arise

A properly structured estate plan can get your property to your children without these headaches—and without losing your tax benefits.

The Good News: Transfers That Won't Hurt You

Florida law recognizes that some ownership changes shouldn't penalize you. Several types of transfers will not trigger a reassessment:

Between Spouses
Adding your spouse to the deed after marriage won't affect your taxable value. This comes up often when someone buys a house while single, then gets married and wants their spouse's name on the property. You're safe making this change.

Divorce Settlements
When a couple divorces and one spouse transfers their interest to the other as part of the divorce decree, this won't trigger a reassessment. The spouse keeping the home maintains the existing tax benefits.

Death of an Owner
When property transfers to a surviving spouse after someone passes away, the Save Our Homes benefit stays intact. This applies whether the transfer happens through probate or other means. The same protection extends to transfers for the benefit of a minor or disabled child who regularly lived in the home.

Transfers to Your Revocable Living Trust
This is a big one for estate planning. When you transfer your home into your own revocable living trust, it doesn't trigger reassessment. Why? Because you still maintain complete control. You can live in the home, sell it, or do whatever you want with it—it's still functionally yours.

Your revocable living trust should clearly state that you keep the exclusive right to live in and sell the property. With the right homestead language included, your tax situation stays exactly the same.

Certain Irrevocable Trusts
Some irrevocable trusts won't trigger reassessment either, but this gets more complicated. These trusts often come into play for Medicaid planning—protecting your home so that if you need to sell it later, the proceeds won't disqualify you from getting help paying for long-term care.

But here's the catch: the irrevocable trust must be written correctly with specific homestead provisions. Put your home in the wrong type of irrevocable trust, and you could face that tax increase you're trying to avoid. This isn't a DIY project.

Real-World Scenarios

Let's look at how this plays out:

Maria's Mistake
Maria owned her home for 15 years. Her original assessed value was $200,000, but with the 3% cap, her taxable value had only increased to about $310,000. Meanwhile, her home's actual market value had climbed to $550,000. She added her two adult children to the deed thinking it would make things easier when she passed away. The property appraiser reassessed the property at $550,000. Her annual property tax bill jumped by over $4,000.

Robert's Smart Move
Robert had a similar situation, but he met with an attorney first. They set up a revocable living trust and transferred the home into it. Robert maintained full control of the property and kept his Save Our Homes protection. When he passes away, the home will go to his children according to the trust terms—no probate needed, no tax increase triggered.

Your Best Resource: The Property Appraiser's Office

Here's something that surprises most people: property appraiser offices throughout Florida actually provide helpful, friendly service. Seriously.

If you're thinking about any transaction involving your property and wondering whether it will affect your taxes, call your county's property appraiser's office. Ask them directly about your specific situation. They're knowledgeable, they give straight answers, and you usually won't spend hours on hold.

This step is worth taking for another reason too. Laws change. What's true today might not be true in five years. Getting information straight from the source helps you make decisions based on current rules.

Planning Ahead Protects Your Wallet

The bottom line: don't make changes to your property ownership without thinking through the tax implications. What seems like a simple solution—adding your kids to the deed, for instance—can cost you thousands of dollars every year for the rest of your life.

The good news is that with proper planning, you can accomplish your goals without sacrificing your Save Our Homes protection. Whether you want to avoid probate, protect assets for Medicaid purposes, or simply make sure your home goes to the right people when you're gone, there are ways to do it that won't trigger a tax reassessment.

A comprehensive estate plan takes all of this into account. It looks at your whole situation—your property, your family, your goals—and structures things in a way that protects both your assets and your tax benefits.

Getting the Help You Need

Property tax protection is just one piece of a larger puzzle. A complete estate plan addresses probate avoidance, Medicaid planning, asset protection, and yes, keeping your property taxes as low as legally possible.

If you're a Florida homeowner thinking about your estate plan—or if you've already made changes to your property and want to know how to handle the situation—professional guidance makes a real difference.

For more information about estate planning and Medicaid planning in Florida, visit Elder Needs Law or Medicaid Planning Lawyer.

You can also check out the book How Medicaid Can Pay for Some of Your Long-Term Care Expenses for an in-depth look at protecting your assets while planning for potential long-term care needs.

Your home is likely your most valuable asset. A little planning now can save you—and your family—a lot of money and stress down the road.

The information in this article is for educational purposes and shouldn't be taken as legal advice for your specific situation. Florida property tax and estate planning laws are subject to change. Consult with a qualified attorney to discuss your particular circumstances.

‍