Published February 26, 2026

Tax benefits for New Construction: Homestead Exemption | Save Our Homes (SOH) cap |Portability (The "Hidden" Discount)

Written by Federico Rotundo

MiMo Biscayne Blvd luxury single family home

As a real estate broker, I’ve seen many buyers get caught off guard by the "tax reset" that occurs after a purchase in Florida. Since you are looking at a sales value of $1,500,000 for a property in zip code 33137 (Miami) with a Homestead Exemption, the math changes significantly from the previous owner’s bill.

In Florida, the year after you buy a home, the assessed value "resets" to the market value. However, the Homestead Exemption immediately provides a deduction from that value and, more importantly, triggers the Save Our Homes (SOH) cap for future years.

Annual Property Tax Estimate (2026)

Based on a $1,500,000 Purchase Price & Homestead Status

Description	Calculation / Value	Amount
Assessed Value (Market)	Sales Price	$1,500,000
Homestead Exemption 1	First $25,000 (All Taxes)	-$25,000
Homestead Exemption 2	Second $25,000 (Non-School)	-$25,000
Taxable Value (School)	$1,500,000 - $25,000	$1,475,000
Taxable Value (Non-School)	$1,500,000 - $50,000	$1,450,000
Estimated Millage Rate	Approx. 1.7% – 1.9%	~18.5 mills
Ad Valorem Subtotal	Taxable Value × Millage	$26,825
Non-Ad Valorem Fees	Garbage, Lighting, etc.	~$1,000
Total Estimated Annual Tax	Sum of above	$27,825

Critical Broker Insights

1. The "Save Our Homes" Benefit

While $27,825 is your starting point, your taxes are now "protected." Because you have the Homestead Exemption, your assessed value cannot increase by more than 3% per year (or the CPI, whichever is lower). If the market value of your home jumps to $3,500,000 in five years, you will still be paying taxes based on a value that only grew by 3% annually from your $1.5M base.

2. Portability (The "Hidden" Discount)

If you are moving from another home in Florida that you owned and homesteaded, you may have Portability. You can "port" up to $500,000 of tax savings from your old home to this one.

Example: If your previous home was worth $800k but taxed at $500k, you have $300k in portability. This would drop your taxable value on the new home from $1.5M down to $1.2M, saving you roughly $5,500 per year additionally.