What are property taxes like in the Florida Keys?

Property taxes in the Florida Keys are administered by Monroe County and are based on the assessed value of the property multiplied by the applicable millage rate. For buyers relocating from other states or high-tax markets, Florida's property tax structure offers some advantages but also some important nuances specific to the Florida Keys.

This page is informational and reference-only. It is not a listings page and does not include property search results.

Quick answer

  • Who administers: Monroe County Property Appraiser and Tax Collector
  • Based on: assessed value multiplied by millage rate
  • Homestead exemption: available for primary residences reducing assessed value
  • Save Our Homes cap: limits annual assessment increases for homesteaded properties to 3% or CPI whichever is lower
  • Non-homestead properties: assessed at market value annually with no Save Our Homes protection
  • Florida Keys relevance: high property values mean tax bills can be substantial even at competitive millage rates

How property taxes work in Monroe County

  • The Monroe County Property Appraiser assesses all properties at market value annually
  • Millage rates are set by Monroe County, municipalities, and special taxing districts
  • Homestead exemption reduces assessed value by up to $50,000 for primary residences
  • The Save Our Homes cap protects homesteaded properties from large annual assessment increases
  • Non-homesteaded properties such as vacation homes and investment properties are assessed at full market value each year
  • Portability allows homesteaded property owners to transfer accumulated Save Our Homes savings to a new primary residence in Florida

Florida Keys-specific considerations

  • High property values in the Florida Keys mean tax bills are often significant even with competitive millage rates
  • Vacation homes and second homes do not qualify for homestead exemption and are taxed at full assessed value
  • Buyers purchasing from long-term homesteaded owners may see a significant tax increase after purchase due to reassessment
  • Properties in incorporated areas such as Key West or Islamorada may have additional municipal millage rates
  • Tax estimates based on current owner's bill are often not accurate for new buyers - request a new buyer tax estimate

What buyers should do

  • Request a new buyer property tax estimate from the Monroe County Property Appraiser before closing
  • Do not rely on the seller's current tax bill as an accurate estimate of future taxes
  • Factor full assessed value taxes into monthly ownership cost calculations for non-homestead properties
  • Consult with a Florida tax professional regarding homestead eligibility and portability if applicable

More Florida Keys real estate questions

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