Homestead Portability
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
This benefit is designed to encourage homeowners to move within the state without losing the tax advantages they have accumulated over time. The amount that can be transferred is typically capped. Portability laws are state-specific, and the rules and limitations can vary significantly. This concept is most common in states with significant homestead exemptions.
Portability in Florida allows homeowners to transfer up to $500,000 of accumulated SOH savings to a new Florida homestead.
Remember that portability is state-specific. Focus on understanding the general concept of transferring tax savings and any limitations on the amount that can be transferred. Pay attention to the term 'SOH savings' in Florida.
Related Terms
Practice Questions
STAR (School Tax Relief) in NY provides:
Illinois Senior Citizen Homestead Exemption provides additional reduction of:
In Texas, the homestead exemption for school district taxes is:
The Florida homestead exemption for property taxes provides up to:
Ohio's Homestead Exemption for seniors reduces property tax by:
Michigan's Principal Residence Exemption (PRE) provides:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.