We 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.
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 firstname.lastname@example.org for an explanation of how this works.