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Just Exactly What Is Property Tax Portability?

Categories: Avondale, Sellers, The Real Estate Process-How Does this work?
Posted on September 29th, 2009

suitcase_of_moneyWe all love saving money — right? If you have lived in your home for a long time and it has been declared as your primary residence (homestead),  you will love hearing about how much money you can save if you sell that home and move to another one with the property tax portability feature! The savings can be HUGE!

Take a look at your property tax statement that you just received and you’ll see a Market Value figure and an Assessed Value figure. To determine what you would “port” or carry with you, subtract the assessed value from the market value.

For example, if your market value is $500K and your assessed value is $300K, then you can “port” or carry the difference of $200K with you. In order to port the entire $200K the next home you purchase must be of greater value than the home you sell. 

An Example:
                        New Home You Are Buying:  $550K
                     – Accumulated Property Tax Savings: $200K
Property taxes on new home will be calculated based on $350K

In addition, the property taxes on your new homestead will also be capped with the Save Our Homes feature and you will also be eligible to take deductions for homestead.

If you are downsizing to a home that costs less than the one you’ve just sold, you are still eligible to port your accumulated property tax savings but the calculation is done differently and is a bit more complicated. Call me at 904-252-5181 or send me an email at [email protected]  for an explanation of how this works.

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If you or someone you know is thinking of buying or selling a home in Avondale, Ortega, or Riverside give us a call at 904-252-5181 or send us a note.

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Allison Steilberg

Realtor®
Berkshire Hathaway HomeServices Florida Network Realty 3627 St. Johns Avenue Jacksonville, FL 32205 904-252-5181 (Allison)