Miami Property Taxes Explained

Understand how property taxes work in Miami‑Dade — how they’re calculated, what the rates are in 2026, how exemptions work (like Homestead), and how to estimate what you’ll pay before buying a home.

Introduction

Miami’s property taxes are a critical part of the homeownership equation. They directly impact your monthly costs, affordability, and long-term expenses. Whether you're considering a primary residence or investment property in Miami‑Dade County, understanding how property taxes work — and how to estimate them — can save you money and help you plan better.

How Property Taxes Are Calculated in Miami‑Dade

Property taxes in Miami‑Dade are based on your home’s assessed value, not the purchase price. This value is determined by the county Property Appraiser’s office and reflects the market value adjusted for exemptions.

Taxes are calculated using a millage rate — which is essentially a tax rate per $1,000 of assessed value. Different areas in Miami‑Dade may have varying millage rates depending on local city, school, and municipal levies.

Basic formula:
$\text{Assessed Value}\times \text{Millage Rate}=\text{Property Tax Bill}$

For example, a home with an assessed value of $500,000 and a millage rate of 20 mills (or 2.0%) would owe about $10,000 annually in property taxes.

Typical Property Tax Rates and What Homeowners Pay

The average effective property tax rate in Miami‑Dade County is approximately 0.82% for primary residences — this accounts for common exemptions like Homestead. Without exemptions, effective rates may range from 1.0% to 2.0%, depending on the area.

Example for 2026:

• Median single-family home price: $682,000

• With Homestead Exemption applied: assessed value could drop by $50,000 or more.

• Taxable value: ~$632,000

• Approximate tax: 0.82% of $632,000 = $5,182/year

Municipality matters — cities like Coral Gables or Miami Beach may have additional millage rates, affecting total tax bills.

Exemptions & Caps That Can Reduce Your Tax Bill

Homestead Exemption

If the property is your primary residence, you may qualify for the Homestead Exemption — reducing your taxable value by up to $50,000, significantly lowering your tax bill.

Save Our Homes Cap

For Homestead-exempted properties, the assessed value can only increase by 3% per year or the rate of inflation (whichever is lower) — even if the market value jumps more. This cap protects long-time homeowners from drastic property tax hikes.

Other Exemptions

Miami-Dade also offers exemptions for:

• Seniors (low-income over age 65)

• Veterans and active-duty military

• Widows/widowers

• People with disabilities

Each exemption has eligibility criteria and provides additional reductions in taxable value.

What Property Taxes Fund — Where Your Money Goes

Property taxes pay for essential local services and infrastructure:

• Public schools

• Police, fire, and emergency services

• Public parks and libraries

• Roads, sanitation, and water services

• Local government budgets

Your tax dollars support the functionality and safety of the community — which also helps maintain property values.

What Buyers Should Know Before Buying in Miami

Tax Bill Will Likely Increase After Purchase

When a property changes ownership, the assessed value is usually updated to reflect the new market price. That means your tax bill may be significantly higher than the previous owner's.

Exemptions Don’t Transfer Automatically

You must apply for the Homestead Exemption (or others) yourself. They don’t automatically transfer with the property.

Include Taxes in Your Budget

When calculating affordability, factor in property taxes as part of your total monthly housing cost — alongside mortgage and insurance. This is especially important in higher-tax neighborhoods.

Look for Special Assessments or Fees

Some areas may have non-ad-valorem assessments for community improvements, garbage, or stormwater — added onto your tax bill.

How to Estimate Property Taxes Before Buying

To estimate your taxes:

1. Get the home’s market price — assume this will become your assessed value (or close to it).

2. Check your local millage rate — each city or municipality may vary.

3. Subtract exemptions if eligible — like the $50,000 Homestead Exemption.

4. Do the math — Assessed value × millage rate ÷ 1,000 = annual property tax.

Example (2026):

• Home Price: $682,000

• Homestead Exemption: $50,000

• Assessed Value: $632,000

• Millage Rate: 20 (2.0%)

• Taxes: $632,000\times 0.02=\$12,640/year$

If eligible for other exemptions, taxes could drop even further.

Conclusion

Miami’s property taxes are more complex than they may appear. Between varying millage rates, exemption rules, and municipality assessments, your final tax bill depends on several factors. As a buyer, it’s crucial to:

• Understand how assessed values and rates are calculated

• Apply for exemptions you qualify for

• Use tools and math to estimate taxes before making a purchase

• Factor those taxes into your long-term homeownership budget

With proper planning and knowledge, you can avoid surprises — and make smarter financial decisions in the Miami housing market. 

FAQ — Miami Property Taxes

Q: How much are property taxes in Miami-Dade on a $500,000 home?
A: It depends on exemptions and the city you’re in. With Homestead Exemption, taxes may be around $4,000–$5,000. Without exemptions, closer to $6,000–$10,000.

Q: What is the Homestead Exemption and how do I apply?
A: It reduces your home’s assessed value for tax purposes by up to $50,000. You must apply with the Miami-Dade Property Appraiser after moving in.

Q: Will my property taxes go up every year?
A: Not necessarily. If you have Homestead Exemption, your assessed value increases are capped annually. However, if market values rise sharply or millage rates increase, taxes could go up.

Q: Do condo owners pay property taxes in Miami?
A: Yes. Condo units are individually assessed and taxed like other homes.

Q: Can I get exemptions if I’m a non-resident or investor?
A: No. Exemptions like Homestead are only available to full-time Florida residents who occupy the home as a primary residence.

Q: When are property taxes due in Miami?
A: Property tax bills are issued in November. Discounts are available for early payments: 4% off in November, decreasing monthly until the final due date in March of the following year.