What are property taxes like in Key West?

Key West property taxes are administered by Monroe County and include both county and City of Key West millage rates. Key West is an incorporated municipality meaning property owners pay both county and city taxes resulting in a combined millage rate higher than unincorporated Monroe County areas. High property values in Key West mean tax bills are substantial even at competitive millage rates.

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Quick answer

  • Who administers: Monroe County Property Appraiser and Tax Collector with City of Key West millage added
  • Combined rate: Key West property owners pay both Monroe County and City of Key West millage rates
  • Homestead exemption: available for primary residences reducing assessed value by up to $50,000
  • Save Our Homes cap: limits annual assessment increases for homesteaded properties to 3% or CPI whichever is lower
  • Non-homestead properties: assessed at full market value annually with no Save Our Homes protection
  • Key West relevance: high property values mean annual tax bills are significant even for modest Key West homes

How property taxes work in Key West

  • The Monroe County Property Appraiser assesses all Key West properties at market value annually
  • The City of Key West sets its own millage rate in addition to Monroe County millage resulting in a higher combined rate than unincorporated areas
  • Homestead exemption reduces assessed value by up to $50,000 for primary residences qualifying for the exemption
  • The Save Our Homes cap protects homesteaded properties from large annual assessment increases limiting growth to 3% or CPI whichever is lower
  • Non-homesteaded properties including vacation homes and investment properties are reassessed at full market value each year
  • Portability allows homesteaded owners to transfer accumulated Save Our Homes savings to a new primary residence in Florida

Key West specific tax considerations

  • Buyers purchasing from long-term homesteaded owners will see a significant tax increase after purchase due to reassessment at current market value
  • Short-term rental properties classified as commercial or transient may be subject to different assessment treatment than residential properties
  • High Key West property values mean even modest homes generate substantial annual tax bills relative to mainland comparables
  • Request a new buyer tax estimate from the Monroe County Property Appraiser before closing - do not rely on the seller's current bill

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