Where to Find the Lowest Property Taxes in Miami?
Nov 12, 2020 November 12, 2020
This article was updated on November 11, 2020.
Most people don’t particularly love talking about property taxes. When looking for a home, buyers focus on more enjoyable aspects, like the layout, color scheme, size of the backyard, or the kitchen upgrades. Still, buyers have to pay attention to property tax rates once they start examining their budget. This guide will help you compare property tax rates in the different neighborhoods of Miami and the Miami Beaches.
Know Your Property Tax Rates
In Miami Dade County, property tax notices are sent out each year on October 30. We have provided updated property tax rates (see below) for 2020 based on the Miami Dade annual millage rates.
As indicated in the table below, there’s not too much of a difference from the lowest to the highest. However, this quickly could turn into precious hundreds or thousands if you’re looking at high-end and luxury properties.
Most surprisingly, the Miami Dade city with the lowest property tax rates is the exclusive Key Biscayne with 1.65%, while Biscayne Park tops it with 2.54%. Also worth noting is that the exclusive beachfront neighborhood of Bal Harbour has low property taxes at 1.74%.
Miami Dade Property Tax Rates - 2020 and 2019
Property Tax Rate 2020
Property Tax Rate 2019
North Bay Village
North Miami Beach
City of Miami*
Bay Harbor Islands
Sunny Isles Beach
Unincorporated Miami-Dade County
The City of Miami includes Coconut Grove and Edgewater.
How Are Property Tax Rates Calculated for Each City and Where Does All the Property Tax Money Go?
While the chart above shows tax rates as a percentage, local governments don’t set rates in this manner. Each year, county and municipal governments, as well as local taxing authorities (such as the School Board and South Florida Water Management District, Children's Trust), determine what the property tax rates will be for each city (also known as millage rates).
So cities approve millage rates instead. The millage rate is defined as the amount of property tax charged per $1000 of the assessed/taxable value of a property. Suppose, the millage rate prescribed by your local government is 25 mills. This means you will be paying $25 for every $1000 of the assessed value of your property. This turns out to be 2.5% of the assessed/taxable value.
The governments (city, county, etc) determine property taxes based on their total budget needed to keep their jurisdiction running without financial issues. In Miami Dade, the Property Appraiser releases the current year property values by July. By figuring out how much total tax revenues they need and will create the millage rate accordingly. Typically, your property taxes will pay for parks, emergency services (fire, police), transportation, education, libraries and recreational activities. These are called non-ad valorem assessments.
For a deeper dive into property taxes and how they are calculated, go here.
Miami-Dade county has an interactive property tax visualizer that shows you exactly where your tax money goes, and lets you compare it to other municipalities' millage rates.
Using the county’s property tax visualizer, here is an example of what the property tax and non-ad valorem taxes could be for a condo in Edgewater, Miami. Edgewater is within the City of Miami, so its millage rate for 2020 is 2.13%.
What Affects Property Tax Rates in Different Neighborhoods?
As you may note in the above table, the economic status of a neighborhood doesn’t seem to affect property tax rates at all. Some of more desirable Miami neighborhoods on the list are also the ones that enjoy a tax rate below 2%. High home values help keep rates down, so that explains lower rates in places like Key Biscayne, Bal Harbour, Miami Beach, etc.
Another major reason behind this disparity in rates is vertical development. For one, it’s logistically easier for a city to service blocks filled with high-rise condominiums, as opposed to a town that stretches out. For instance, it is cheaper to install and maintain a sewage line servicing a 60-unit condo as opposed to 60 houses in a row. And secondly, condo complexes pack in more taxpayers than larger single family home estates.
So, a new condo development in your area could actually translate into good news for your property tax!
If you have any questions about the possible property tax rate for a new condo or home you are looking at, please give us a call and we’ll be happy to help you.