South Florida Luxury Property Taxes: Millage, Homestead, and Address-Level Carrying Costs
Quick Summary
- Millage varies sharply by municipality
- Non-ad valorem charges can surprise
- Homestead and SOH reshape long-term costs
- Model taxes at the exact address
Why luxury buyers misread property taxes in South Florida
Property taxes in South Florida are often summarized as “low tax Florida.” For luxury buyers, that shorthand misses what actually drives the bill, especially at ultra-premium price points and along the water. The annual cost you inherit is shaped less by the contract price and more by address-level mechanics: taxable value, the total millage stack, and add-on assessments that do not behave like a clean percentage.
At the luxury level, taxes are not just a line item. They affect liquidity planning, trust and estate timing, and the economics of how you hold and use the property, whether as a primary residence, a second home, or an investment. Taxes should be treated as part of the acquisition strategy, not an afterthought after closing.
The Florida formula in plain English
Florida’s core calculation is simple: taxable value multiplied by the millage rate, divided by 1,000. One mill equals $1 of tax per $1,000 of taxable value. If the combined rate totals 20 mills, that is roughly $20 per $1,000 of taxable value before exemptions and credits.
What complicates the result is not the math, but who is in the stack. Your total millage typically combines rates from multiple taxing authorities, commonly the county, the school board, the municipality (if incorporated), and special districts. That is why two similarly valued homes can produce different bills when they sit on opposite sides of a municipal boundary.
Also, market value, assessed value, and taxable value are not interchangeable. Exemptions and assessment limits can create significant gaps, particularly for long-held properties. A newly purchased trophy residence can have a very different tax profile than a neighboring home that has been homesteaded for years.
Ad valorem vs. non-ad valorem: the line items buyers overlook
Most Florida tax bills include two categories of charges.
Ad valorem taxes are value-based. They rise or fall with taxable value and the millage rate.
Non-ad valorem assessments are benefit-based and are often flatter in structure. They can include items such as fire, lighting, drainage, or other district assessments. Because these charges are not purely value-driven, they can move the total bill in ways that make “effective tax rate” comparisons feel misleading. Two condos in the same neighborhood can show different totals if their assessment profiles differ.
For luxury clients, the discipline is to separate the bill into what scales with value versus what behaves more like a fixed or semi-fixed charge. That split is what makes a carrying-cost model durable.
Miami-Dade: municipal millage is the luxury variable
Miami-Dade is a clean case study in why taxes should be modeled at the exact address. TRIM comparison materials published for 2025 show meaningful variation in total millage by municipality.
In that comparison, Key Biscayne is shown among the lower total millage jurisdictions at about 15.6226 mills. The City of Miami is higher at about 20.0332 mills. Miami Beach appears around 19.4016 mills, and Bal Harbour around 17.4585 mills. Even for buyers comfortable with overall ownership costs, those differences can shift annual taxes enough to matter for multi-year planning.
The point is not that one municipality is universally preferable. It is that total millage is part of an address’s profile, alongside privacy, walkability, and view corridors.
This is also where branded, high-service living intersects with hard costs. If you are evaluating oceanfront or resort-adjacent residences, the lifestyle promise is only half the picture. The other half is the jurisdictional stack tied to the parcel.
In Miami Beach, for example, buyers weighing service-forward, design-led buildings often evaluate full carrying costs in parallel with the experience. Properties such as Shore Club Private Collections Miami Beach and Setai Residences Miami Beach can be part of that conversation, because they anchor a particular lifestyle while the address anchors the tax structure.
Broward and Palm-beach: comparisons that are useful, and those that mislead
County-to-county comparisons often lean on effective property tax rates. Across South Florida, statewide comparison reporting commonly shows Miami-Dade and Broward with higher effective rates than Palm Beach. That can be a useful directional filter for clients choosing between regions.
It is not, however, a substitute for a parcel-level estimate. Broward publishes city and authority-level millage information, and unincorporated Broward’s total millage is shown around 19.0509 mills. Incorporated cities can differ from that baseline, which is why the same “Broward rate” can translate into different real-world bills.
Palm Beach County provides a different set of signals. Public reporting notes property tax collections reaching $6.5 billion, and 2025 budget discussions have referenced a proposed county tax rate around $4.50 per $1,000 of taxable value (4.50 mills). The key is that the county rate is only one layer once school and municipal components are added. For luxury buyers comparing Delray, Palm Beach, and West Palm, the cleanest comparison remains the same: tie the estimate to a specific address and an accurate exemption profile.
Homestead, SOH, and the quiet compounding advantage
For primary residents, Florida’s homestead framework can materially reshape long-term ownership economics.
The homestead exemption is up to $50,000 for qualifying primary residences, structured so the second $25,000 generally does not apply to school taxes. Separately, Save Our Homes limits annual increases in assessed value for homesteaded property to the lesser of 3% or CPI. Over time, this can create a meaningful spread between a long-held homesteaded assessed value and a newly purchased market value.
This compounding effect is why two owners in the same building can have very different tax bills, and why longtime owners can sometimes carry a notably favorable cost basis. For an incoming buyer, it is also why the seller’s tax bill is not a reliable proxy for what you will pay.
Timing matters. Florida generally requires homestead exemption applications by March 1 to receive the benefit for that tax year. High-net-worth buyers who close early in the year often coordinate residency decisions, voter registration, and supporting documentation so the tax profile matches intended use.
Starting in 2025, Florida’s Amendment 5 changes how the homestead exemption evolves by indexing part of the exemption to inflation. For primary residences, that makes future taxable value trajectories less static and reinforces the value of reviewing the bill annually.
Second homes and investments: the 10% cap is not SOH
For a second home or an investment property, the assessment-cap dynamic is different. Many non-homesteaded properties are subject to a 10% annual cap on assessed value increases, which is materially higher than the Save Our Homes limitation.
For luxury buyers, that difference is practical, not academic. A residence intended for seasonal use can carry a meaningfully different long-term tax curve than a residence intended to establish domicile. If you expect to hold through multiple valuation cycles, the difference between a 3% style limit and a 10% cap can become consequential, particularly in rising markets.
In Miami Beach, this is one reason branded residences draw both end-users and lifestyle investors. The decision to treat a residence as a primary home versus a seasonal home can be as consequential as the choice between oceanfront and bayfront.
Projects such as The Ritz-Carlton Residences® Miami Beach and Casa Cipriani Miami Beach sit within this broader decision set: service, privacy, and location are obvious; the tax posture should be equally deliberate.
A practical modeling checklist before you close
Luxury buyers routinely budget for association dues, staffing, and insurance. Taxes deserve the same pre-close rigor, because they can vary materially at the address level.
Start by separating what you can answer broadly from what you must answer specifically.
Broad questions:
- What municipality and special districts apply to the exact address?
- Will the property be homesteaded, and if not, should you model higher future assessment growth?
- Are you comparing Miami-Dade, Broward, and Palm Beach using effective rates only as a first filter?
Specific questions:
- What is the current assessed value versus market value, and how might that reset at purchase?
- What non-ad valorem assessments appear on the most recent bill?
- What total millage applies at the parcel, not just the county?
For scenario planning, county property appraisers provide estimator tools that let you model taxes based on location, exemptions, and taxable value. In Miami-Dade, for example, an estimator can help you test how a shift from primary residence status to second residence use could change your carrying-cost profile.
What to watch next: policy risk and the importance of flexibility
Florida policymakers continue to debate major property tax changes, and public reporting has highlighted proposals that could materially alter local government revenue and homeowner bills. For luxury clients, the correct posture is not speculation. It is flexibility.
Flexibility can look like maintaining liquidity for annual variability, confirming exemption eligibility each year, and avoiding assumptions that taxes will track neatly with market value. In a market where luxury decisions are increasingly multidimensional, taxes remain one of the more controllable variables, provided you treat them as a core input to the plan.
FAQs
What is a millage rate? A millage rate is the tax per $1,000 of taxable value. One mill equals $1 per $1,000.
Why can two similar homes have different tax bills? They may sit in different municipalities or districts, have different exemptions, or carry different non-ad valorem assessments.
Is Florida property tax just a percentage of purchase price? Not directly. The bill is based on taxable value, not necessarily market value, multiplied by total millage.
What is the homestead exemption in Florida? It is up to $50,000 of value reduction for qualifying primary residences, with limits on how the second portion applies to school taxes.
What is Save Our Homes? It limits annual increases in assessed value for homesteaded property to the lesser of 3% or CPI.
How are second homes assessed compared to primary homes? Many non-homesteaded properties have an assessment cap that can allow increases up to 10% per year, which can raise long-term carrying costs.
Do non-ad valorem assessments matter for luxury properties? Yes. They can add meaningful cost and are not purely value-based, so they can surprise buyers who only model millage.
Are Miami Beach taxes the same as other Miami-Dade areas? No. Total millage varies by municipality within Miami-Dade, which can materially change the annual bill.
When should I apply for homestead? Florida generally requires applying by March 1 to receive the benefit for that tax year.
What is the safest way to estimate taxes before closing? Use the county property appraiser’s estimator for the exact address and run scenarios with and without exemptions.
For discreet, address-specific guidance on South Florida luxury ownership, speak with MILLION Luxury.
Million Luxury
Million Luxury
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