Are you weighing a home purchase in Melbourne and wondering how to keep your Florida property taxes in check? You are not alone. The homestead exemption, the Save Our Homes cap, and portability can meaningfully reduce your tax bill, but the rules and timelines can feel confusing. In this guide, you will learn how these programs work in Brevard County, who qualifies, the key dates to remember, and simple examples to help you plan. Let’s dive in.
Homestead basics in Florida
Florida’s homestead exemption is a property tax benefit for your primary residence. It reduces your taxable assessed value by up to $50,000. The first $25,000 applies to all taxing authorities, and the additional $25,000 applies to the assessed value between $50,000 and $75,000 and generally does not apply to school district taxes.
To qualify in Brevard County for a given tax year, you must own and occupy the home as your permanent residence by January 1 of that year. You also need an ownership interest in the property. Florida rules are about residency, not citizenship, and you may only claim one homestead at a time.
Save Our Homes cap explained
Florida’s Save Our Homes assessment cap limits how quickly your homestead’s assessed value can rise each year. The increase is capped at the lesser of 3% or the change in the Consumer Price Index. When market values rise faster than this cap, you build a Save Our Homes benefit, which is the gap between market value and the lower capped assessed value.
Keep in mind, this cap affects assessed value, not millage rates. Your actual tax bill reflects both the taxable value and the local rates set by taxing authorities.
Portability when you move
Portability lets you transfer your Save Our Homes benefit from one Florida homestead to a new Florida homestead. You can move the difference between your old home’s market value and its capped assessed value, up to $500,000. This reduces the assessed value of your new homestead and helps control taxes when you buy up or rightsize.
If you are moving within Florida, portability can follow you to Melbourne. If you are moving from out of state, portability does not apply unless you previously had a Florida homestead. Buying after January 1 does not qualify you for that year’s homestead exemption, but you may still be able to transfer an existing Florida Save Our Homes benefit to the new homestead, subject to Brevard County’s portability filing process and deadlines.
Timelines that matter in Brevard
- Own and occupy by January 1 to qualify for that year’s homestead exemption.
- File your homestead exemption and any portability claim with the Brevard County Property Appraiser by March 1 for the current tax year.
- If you close after January 1 and do not have a prior Florida homestead, you will generally apply for the exemption the following tax year.
- Start gathering documents early so you have time to meet the filing window.
Simple examples
Example A: New to Florida, no prior homestead
You buy a Melbourne home and it is your primary residence by January 1. With no prior Florida homestead, you can claim the standard homestead exemption. The combined benefit is up to $50,000 off the assessed value, with the second $25,000 generally not applied to school taxes.
Example B: Moving within Florida with portability
You sell a Florida home with a market value of $500,000 and a capped assessed value of $300,000. Your Save Our Homes benefit is $200,000. You buy a new Melbourne home with a market value of $600,000. If approved, up to $200,000 can transfer to reduce the new homestead’s assessed value, subject to the $500,000 portability cap. Your final taxable value will also reflect the standard homestead exemption and local millage rates.
How to file in Brevard County
Follow these steps after you close and move in:
- Confirm eligibility
- Make the home your permanent residence and plan to be owner-occupant by January 1 for the tax year you want to claim.
- Prepare documents
- Proof of ownership, such as your deed or closing statement.
- Proof of Florida residency at the property as of January 1, such as a Florida driver’s license or ID with the property address, vehicle registration, voter registration, or a Florida declaration of domicile.
- For portability, bring prior Florida homestead documentation such as a prior tax bill or county property appraiser record that shows your Save Our Homes benefit.
- File by March 1
- Submit your homestead exemption application, and if applicable, your portability claim with the Brevard County Property Appraiser by March 1. Many counties provide online filing and checklists. Use the county portal to confirm current requirements and any additional items needed.
- Track your notice
- Watch for your TRIM notice later in the year to see how exemptions and the Save Our Homes cap appear on your assessment.
Common pitfalls to avoid
- Missing the March 1 deadline, which can cost you a year of savings.
- Waiting too long to gather prior homestead records, which can delay portability processing.
- Overlooking ownership structure issues, such as trusts or LLCs, that can affect eligibility.
- Assuming rules are identical across counties. Portability is statewide, but documentation and processing can vary.
If your situation is complex, contact the Brevard County Property Appraiser and a qualified tax professional to confirm your path.
Planning tips for Melbourne buyers
- If possible, time your closing and move to be owner-occupant by December 31 so you qualify on January 1.
- If you have a current Florida homestead, collect your prior year assessment and tax bill before moving to streamline portability.
- If you are moving from out of state, plan for the homestead exemption to begin the next tax year if you buy after January 1.
- Remember that exemptions and portability reduce the assessed value. Your final bill still depends on local millage rates.
Ready to map out your move and ownership costs on the Space Coast? A clear plan for homestead, Save Our Homes, and portability can save you meaningful dollars over time. For local guidance on timing, neighborhoods, and a smooth closing, connect with the Gibbs Baum team.
FAQs
Can I get homestead the year I buy in Melbourne?
- Yes, if you both own and occupy the home as your permanent residence on January 1 of that tax year; otherwise you will apply for the next tax year.
How does portability affect taxes on a new Melbourne home?
- It reduces the new homestead’s assessed value by your transferable Save Our Homes benefit, up to $500,000, which lowers taxable value and can reduce your bill.
What if I buy after January 1 in Brevard County?
- You generally cannot claim that year’s homestead exemption, but you may still transfer a prior Florida Save Our Homes benefit through portability if you file by March 1.
What documents do I need to file in Brevard County?
- Proof of ownership and Florida residency at the property as of January 1, and for portability, records of your prior Florida homestead and Save Our Homes benefit.
Does the extra $25,000 exemption apply to school taxes?
- The additional $25,000 exemption generally does not apply to school district taxes, while the first $25,000 applies to all taxing authorities.
How much portability can I transfer to Melbourne?
- You can transfer up to $500,000 of your Save Our Homes differential to your new Florida homestead, subject to documentation and timely filing.
