Property taxes in Tampa can feel like a maze, especially when you mix homestead rules, the Save Our Homes cap, and flood-zone realities. If you are buying, selling, or thinking about moving within Florida, understanding how these pieces fit together can save you real money. In this guide, you will learn how the homestead exemption and Save Our Homes cap work in Hillsborough County, what changed for 2025, how portability reduces taxes when you move, and how flood zones can influence value and premiums. Let’s dive in.
Homestead exemption basics
The homestead exemption reduces the taxable value of your primary residence. Florida’s framework includes the first $25,000 that applies to all taxing authorities and a second portion that applies only to non-school taxes. Starting with the 2025 tax year, voters approved a change that adjusts that second portion for inflation each year. For 2025, the second exemption rose to about $25,722, so many owners will see a combined exemption around $50,722, with the second portion still not applying to school-board millage. You can review details and filing steps on the Hillsborough County Property Appraiser’s homestead page and the 2025 update on Amendment 5 from St. Johns County’s resource (homestead overview, Amendment 5 update).
To get the exemption for the current tax year, apply by March 1. You will use Form DR-501 and provide proof of Florida residency and ownership. The exemption reduces your taxable value, which lowers your final tax bill, but it does not set tax rates. Millage rates are set by local taxing authorities.
Quick example
- If your just value is $300,000 in 2025 and you qualify for homestead, the first $25,000 applies to all millages. The second portion, adjusted to about $25,722 in 2025, applies only to non-school taxes. Your taxable value for non-school millages would be reduced by roughly $50,722, and for school millage by $25,000.
Save Our Homes cap
Once your home is homesteaded, the Save Our Homes rule limits how much your assessed value can rise each year. The cap is the lesser of 3 percent or the change in CPI. Appraisers still estimate market value each year, but the cap controls the increase to the assessed value for homesteaded property. Review the county’s explanation of the cap on the Property Appraiser’s site (Save Our Homes).
The cap can also work during a soft market. Due to the “recapture rule,” your assessed value can still rise up to the cap even if market values dip, until assessed value meets market value. Assessed value can never exceed market value. For background on recapture, see Pinellas County’s explainer (recapture rule basics).
Market, assessed, taxable
- Market or just value is the appraiser’s estimate of what buyers would pay.
- Assessed value is market value limited by Save Our Homes for homesteads.
- Taxable value is assessed value minus exemptions. You will see all three on your TRIM notice each August. The Hillsborough Property Appraiser explains how these numbers appear and how millage is set by local boards (TRIM overview).
Cap example
- Suppose your assessed value last year was $250,000 and CPI was 3 percent. Even if the market jumped to $280,000, your new assessed value would be limited to $257,500 under the cap, excluding any value added for new construction or improvements.
Portability when you move
If you sell a Florida homestead and buy another Florida homestead, you may transfer some or all of your Save Our Homes benefit. This transfer, commonly called portability, can be up to $500,000 of your assessment difference, subject to rules and forms. Many counties allow portability if you establish the new homestead within a limited window, commonly up to three tax years. For how the amount is calculated, see Miami-Dade’s portability overview, and for forms and steps, see Hillsborough’s homestead resources (portability calculations, Hillsborough filing steps).
You will file DR-501 for homestead at the new home and DR-501T to transfer the assessment difference. Filing by the March 1 deadline is key.
Portability example
- If your prior homestead had a market value of $500,000 and an assessed value of $350,000, your assessment difference is $150,000. If you buy a new Florida homestead, you could transfer up to that $150,000 (subject to rules), which lowers the starting assessed value on the new property.
Flood zones and your tax picture
Flood-zone status does not change homestead or the Save Our Homes cap. It can, however, influence market value, insurance costs, and rebuild requirements, which can indirectly affect future assessments. Tampa participates in FEMA’s National Flood Insurance Program and the Community Rating System, and the city reports a CRS Class 5 that provides premium discounts for many policyholders. Explore Tampa’s official flood resources for maps, elevation certificates, and preparedness guidance (Tampa flood info).
If your home in a Special Flood Hazard Area is substantially damaged or improved, you may need to elevate or meet other standards under the NFIP “50 percent rule.” Those construction costs can influence value and, if they count as new improvements, can be added to your assessment outside the SOH cap. FEMA details when elevation is required (FEMA substantial improvement rules).
Florida now requires seller flood disclosures. Sellers must provide a flood disclosure form at or before contract execution and disclose certain claim history and federal assistance. This improves transparency, which can affect buyer expectations and market pricing. You can read the statute in Chapter 689 of the Florida Statutes (flood disclosure statute).
Practical steps for flood factors
- Sellers: prepare the required flood disclosure early and gather any available elevation certificates and permits.
- Buyers: check FEMA maps and city resources, request elevation certificates, and get flood insurance quotes before you close.
- Everyone: consider how insurance premiums and potential elevation requirements affect total cost of ownership and long-term value.
Deadlines, notices, and appeals
Mark your calendar for March 1 to file your homestead application for the tax year. In late August, watch for your Notice of Proposed Property Taxes, also called TRIM. Review your market, assessed, and taxable values, and confirm your exemptions are listed correctly. The Property Appraiser’s office explains TRIM and how millage rates are set by taxing authorities, not the appraiser (TRIM overview).
If you disagree with your value, start with an informal review with the Property Appraiser promptly. If needed, you can file a Value Adjustment Board petition. The window is short, typically 25 days from the TRIM mailing date printed on your notice. Hillsborough’s VAB portal outlines filing and hearing procedures (VAB filing portal).
Local resources to bookmark
- Hillsborough County Property Appraiser: homestead, Save Our Homes, forms, and guidance (HCPA homestead resources).
- Save Our Homes: cap and examples (SOH page).
- TRIM process: understanding notices and millage (TRIM overview).
- City of Tampa flood resources: maps, CRS discounts, certificates (Tampa flood info).
- FEMA: substantial improvement and elevation rules (FEMA 50 percent rule).
- Florida Statutes: flood disclosure requirements (Chapter 689).
When you have the right plan, Tampa’s tax rules become a tool instead of a headache. If you are weighing a move, debating a remodel in a flood zone, or trying to time a sale, we will help you line up homestead, portability, and insurance so your numbers make sense. Connect with JT Realty & Associates to map your next step with local expertise, waterfront know-how, and a seamless plan from pre-approval to closing.
FAQs
What is the homestead exemption in Tampa?
- It reduces the taxable value on your primary residence. Apply by March 1 using DR-501, and you will receive the first $25,000 on all millages plus a second portion on non-school taxes that is adjusted for inflation starting in 2025.
How does Save Our Homes impact my bill?
- Once homesteaded, your assessed value can rise only by the lesser of 3 percent or CPI each year, which helps limit tax increases. Your TRIM notice will show market, assessed, and taxable values.
What is portability and who qualifies?
- If you had a Florida homestead and buy another, you can transfer up to $500,000 of your assessment difference within a limited time window by filing DR-501 and DR-501T.
Do flood zones automatically lower Tampa taxes?
- No. Flood status does not change homestead or the Save Our Homes cap. It can affect market value, insurance costs, and rebuild requirements, which may indirectly influence assessments over time.
What flood disclosures do sellers need?
- Florida requires a flood disclosure form at or before contract signing and disclosure of certain flood-related claims and assistance. Prepare it early to avoid delays.
When do I get my TRIM notice and how do I appeal?
- TRIM notices arrive in late August. If you disagree with your value, request an informal review quickly and file a Value Adjustment Board petition within about 25 days of the mailing date if needed.
