Homestead & Portability: Palm Beach County Basics

Confused about how Florida’s homestead rules and portability can lower your property taxes? You are not alone. These benefits can be powerful if you understand the timing, forms, and local assessments that show up on your bill. In this guide, you will learn the practical steps, deadlines, and local tax factors that matter in western Palm Beach County so you can plan with confidence. Let’s dive in.

Homestead exemption basics

Homestead gives you two key benefits in Palm Beach County. You can receive up to a $50,000 reduction to your assessed value and your assessed value is capped from rising more than 3% per year or the change in CPI, whichever is less. Together, these savings often make the biggest impact on a homeowner’s annual tax bill. For an overview of how the exemption and cap work, see the county’s homestead FAQs from the Property Appraiser. (Homestead FAQs)

Who qualifies and when to apply

You must own and occupy the home as your permanent residence on January 1 of the tax year. Only one homestead is allowed per family unit. The standard filing deadline is March 1 of the year you want the exemption. Palm Beach County allows online and in-person filing, and the county’s portability page also outlines homestead timing. (Palm Beach County homestead and portability)

Documents to gather

Have these items ready when you apply:

• Recorded deed or closing statement.
• Florida driver’s license or Florida ID showing the homestead address.
• Proof of Florida residency and occupancy as of January 1, such as vehicle registration, voter registration, utility bills, or declaration of domicile. If using a trust, a Certificate of Trust may be required. For details, review the county’s FAQ. (Required documents and FAQs)

How to file

File Form DR-501 with the Palm Beach County Property Appraiser by March 1. If nothing changes after you are approved, your homestead generally renews automatically each year. You can find DR-501 and related forms on the Florida Department of Revenue site. (Florida property tax forms index)

If you missed March 1

Palm Beach County may accept late applications when there are extenuating circumstances. If you missed the deadline, contact the Property Appraiser’s office right away to ask about late filing and Value Adjustment Board options. The county explains late filing on its FAQ page. (Late filing guidance)

Save Our Homes portability

Portability lets you transfer some or all of your Save Our Homes benefit from a prior Florida homestead to your new Florida homestead. The transferred amount reduces your new home’s assessed value in the year portability is applied. Palm Beach County provides a clear overview and an online calculator to help you estimate savings. (Portability in Palm Beach County)

Eligibility and timing

You must have had a Florida homestead on a prior residence and establish the new homestead on or before January 1 of the third year after abandoning the prior homestead. File your portability application with your homestead application by March 1 of the tax year you want it to apply. The county outlines the timing rules on its portability page. (Portability timing and rules)

How much you can transfer

You can transfer up to $500,000 of your Save Our Homes benefit. If your new home’s market value is higher than your old home’s value, you may transfer the full differential up to the cap. If you are buying a lower-priced home, the transfer is prorated. Use the county’s Portability Calculator for an estimate. (Palm Beach County Portability Calculator)

Forms and filing steps

• DR-501, Original Application for Homestead, to establish homestead on the new residence.
• DR-501T, Transfer of Homestead Assessment Difference, to request portability with your DR-501.
• DR-501TS, Designation of Ownership Shares of Abandoned Homestead, if prior co-owners will split the portability amount. You can download these forms from the Florida Department of Revenue. (Florida property tax forms index)

Quick examples

• Upsizing: Prior home just value $250,000 and assessed value $150,000 equals a $100,000 differential. New home just value $400,000. You may transfer the full $100,000, which reduces your new assessed value by that amount in year one.
• Downsizing: Prior just value $400,000 and assessed value $300,000 equals a $100,000 differential. New home just value $250,000. The transfer is proportional based on statutory formulas. The Property Appraiser will do the final calculation and the online calculator can help you estimate it.

Avoid common pitfalls

• Claiming homestead on more than one property is not allowed.
• Changing your deed or placing the property in a trust without notifying the Property Appraiser can disrupt your exemption.
• After a purchase, assessed value can reset toward market value before the Save Our Homes cap takes effect in later years, so a first-year jump can happen. The county explains these scenarios in its FAQs. (County FAQs)

Loxahatchee and The Acreage tax factors

Much of Loxahatchee and The Acreage is unincorporated Palm Beach County, which means many parcels do not pay city ad valorem taxes. Boundary lines matter since nearby municipalities like Westlake and Loxahatchee Groves have their own millage for properties inside city limits. To confirm your parcel’s taxing authorities, use the Palm Beach County Property Appraiser’s resources. (Palm Beach County homestead and portability)

Indian Trail Improvement District assessments

The Indian Trail Improvement District serves much of The Acreage with roads, drainage, canals, and parks. ITID typically funds services through non-ad valorem assessments that appear on your tax bill. These charges are not reduced by homestead or portability and can be significant for acreage parcels. Learn more about ITID’s role and funding. (Indian Trail Improvement District overview)

What to review before you buy or sell

• Check the parcel’s current tax bill on the Palm Beach County Property Appraiser site to see all taxing authorities and non-ad valorem assessments, including ITID.
• Verify whether the seller had homestead and whether you might bring portability from your prior Florida homestead.
• Remember that non-ad valorem assessments are billed separately and are not value-based. (Non-ad valorem assessment basics)

Quick checklist for your timeline

• By January 1: Occupy the property as your permanent residence to qualify for that tax year.
• By March 1: File DR-501 to claim homestead and DR-501T if you are using portability.
• If you co-owned a prior homestead and are splitting the benefit, file DR-501TS before portability.
• Watch for your Notice of Proposed Property Taxes in late summer, which will show how homestead and portability were applied. (Portability overview)

Next steps

If you are planning a move to or within Loxahatchee and The Acreage, factor homestead and portability into your purchase timeline early. Confirm deadlines, gather documents, and use the county’s calculator to set expectations before closing. For local guidance on neighborhoods, pricing, and your tax outlook, connect with Craig Reeves for a clear plan and a smooth move.

FAQs

What is the homestead exemption in Palm Beach County?

• It reduces your assessed value by up to $50,000 and limits annual assessed-value increases to 3% or CPI, which can lower your property tax bill. (Homestead FAQs)

How does portability timing work if I sold last year?

• You must establish your new Florida homestead on or before January 1 of the third year after abandoning the prior homestead and file portability with your homestead by March 1. (Portability timing)

Do ITID assessments get reduced by homestead or portability?

• No, ITID charges are non-ad valorem assessments and are not reduced by homestead or portability, though they still appear on your property tax bill. (Non-ad valorem overview)

Which forms do I need to transfer my Save Our Homes benefit?

• File DR-501 to establish homestead, DR-501T to transfer the benefit, and DR-501TS if prior co-owners are splitting the differential. (Florida tax forms index)

Why did my assessed value jump after I bought in The Acreage?

• After a change in ownership, assessed value often resets toward market value before the Save Our Homes cap applies in future years, so a first-year increase can occur. (County FAQs)

How can I estimate my portability savings before I buy?

• Use the Palm Beach County Portability Calculator for a quick estimate, then confirm with the Property Appraiser during your application. (Portability Calculator)