Understanding Property Taxes in Miami: Everything You Need to Know
As one of the most desirable places to live in the entire world, it’s no surprise that Miami-Dade county has a high cost of living. The many rewards of being a Miami resident are reflected in our city’s property taxes, which vary by city. Understanding how property taxes are calculated in Miami is crucial for your financial readiness, especially if you’re planning on moving to paradise
Here’s everything a potential homeowner needs to know about property taxes in Miami:
Overview of Property Taxes in Miami
In Miami-Dade County, property taxes are collected to fund essential public services like schools, libraries infrastructure maintenance, and emergency services. Since Miami is known as a particularly safe and attractive place to live, property taxes play a key role in maintaining our city’s luxurious reputation as well as our quality of life.
How are Miami Property Taxes Calculated?
Property taxes in Miami are determined by a property’s assessed value. This is calculated every year by the Miami-Dade County Property Appraiser based on comparable sales, market trends, and improvements made to the property. When property values in Miami go up, property taxes may do the same.
Your property’s assessed value is then multiplied by the property tax rate – or millage rate – which is determined by local taxing authorities.
The property tax rate in Miami typically hovers around 2% of the assessed property value. This rate is in the same ballpark as many other parts of Florida, but slightly higher than the national average. So, a Miami property valued at $700,000 might see an annual property tax bill of approximately $14,000.
Other Factors that Affect Property Taxes in Miami
Though your home’s assessed value is the baseline for property tax calculation, several additional factors impact property tax rates in Miami. Understanding these factors can help you anticipate changes in your annual tax bill.
Homestead Exemption
If your Miami home is your primary residence, you may qualify for the Homestead Exemption, which reduces the taxable value of the property by up to $50,000. This provides significant savings, especially in rapidly growing neighborhoods. Properties that qualify for the Homestead Exemption also benefit from a cap on the annual increase in assessed value of 3% per year.
Additional Exemptions
Miami-Dade County offers additional exemptions for seniors, veterans, and disabled individuals designed to reduce the taxable property value.
Economic Budgetary Factors
Property tax rates are also influenced by the local government’s budgetary requirements. So, if Miami-Dade County or the City of Miami needs more revenue for big projects or public services, property tax rates may increase.
Discounts for Early Payment
Thanks to Florida Statute 197.162, you can receive a discount on your property taxes if you pay early:
- 4% if paid in November
- 3% if paid in December
- 2% if paid in January
- 1% if paid in February
- No discount applies if paid in March
How Can I Check my Miami Property Tax Bill?
For an estimation of what your property tax will look like, Miami-Dade County has a property tax estimator tool on their website you can check out here. You can also check your property tax bill through the Miami-Dade County Proprietor Appraiser’s website, where you’ll see if any exemptions or adjustments were applied to your bill.
If you are thinking of moving to Miami and have questions about the cost of living, the Drew Kern team is here to help. As experts in the South Florida market, we can answer any questions you may have about how tax rates work in different areas of Miami. Give us a call at 305-329-7744 and let’s find your dream home together.
