The Save Our Homes (SOH) provision limits annual increases in the assessed value of a homesteaded Florida primary residence to the lesser of 3% or the CPI annual change. Over years of appreciation, this creates a growing gap between the property's market value and its assessed (taxable) value, producing significant annual property tax savings compared to non-homesteaded properties that are assessed at full market value each year.
The Save Our Homes (SOH) provision of Florida's constitution limits the annual increase in the assessed value of a homesteaded primary residence to the lesser of 3% per year or the percentage change in the Consumer Price Index.
Without SOH: A luxury condo purchased in 2016 for $3 million that is now worth $8 million would be assessed at approximately $8 million, and its tax bill would have more than doubled from purchase.
With SOH: If the owner established homestead in 2016, the assessed value can only increase by 3% (or CPI, whichever is lower) per year. After 10 years at 3% maximum growth, assessed value would be approximately $4 million — half the current market value.
At Miami-Dade's effective rate of approximately 1.85%, the difference between being assessed at $8 million versus $4 million is approximately $74,000 per year in property tax. Over a 15-year hold, this differential can represent $500,000 to $1 million+ in tax savings for a luxury primary residence that has appreciated significantly.