The true cost of owning luxury property in Miami

The purchase price is only the first number. A luxury property in Miami costs tens of thousands of dollars a year in taxes, insurance, fees and upkeep, and a foreign buyer pays more property tax than a resident because they can't claim the homestead exemption. We work it out with two examples, a $2 million condo in Miami Beach and a $3 million house in Coral Gables, using the county's official rates.

Property tax by municipality

In Miami-Dade, property tax is the home's taxable value multiplied by the total rate, which adds up the county, school district, municipality and other authorities. It's expressed in mills: 18 mills means $18 per $1,000 of value, or 1.8%.

Source: Miami-Dade Property Appraiser, 2025 rates (fiscal year 2025-2026). We combine the proposed total rates with the adopted municipal rates, so they're approximate.

Two details change the math for a foreigner:

• No homestead exemption. Someone whose permanent residence is in Florida can deduct up to $50,000 from the value and cap annual increases at 3% or inflation, whichever is lower. A nonresident doesn't get that.
• Taxable value isn't the price. The appraiser estimates market value and by law must account for the usual costs of a sale, so it usually comes in below the purchase price. In our examples we assume it's 85% of the price.

Two worked examples

Property tax comes from official rates. Insurance, fees and upkeep are illustrative assumptions, because they depend on each building and each house: always get the real figures before you buy.

To put insurance in context: according to a 2026 Insurify analysis, the average homeowners insurance premium in Florida is about $8,300 a year, nearly three times the national average. For a waterfront luxury home, that figure multiplies, and federal flood insurance only covers up to $250,000 of the building: above that you need private coverage. We explain it in our guide to home and flood insurance.

One-time costs at purchase

• Documentary stamp tax on the deed: in Miami-Dade, $0.60 per $100 for single-family homes and $1.05 for everything else, including condos. In the examples, $18,000 for the house and $21,000 for the condo. In Florida the seller usually pays, but it's negotiable.
• If you finance: $0.35 per $100 of the loan in stamps plus a 0.2% intangible tax. On a $1.2 million loan, $4,200 and $2,400.
• Title insurance, closing, attorney and inspections: ask the title company for a closing estimate before you sign.

How costs rise over time

• Tax: on a second home, taxable value can rise up to 10% a year, excluding the school portion, which has no cap. And when you buy, the value resets to market, even if the seller paid far less.
• Amendment 3: on November 3, 2026, Florida votes on a reform that would lower that cap to 5% from 2027 and raise the homestead exemption. It needs 60% of the vote.
• Buildings: since the 2022 condo safety law, many towers have raised fees or approved special assessments to fund reserves and inspections. Ask for the reserve study before you buy.
• Insurance: premiums can rise from one year to the next, especially after an intense hurricane season.

What's withheld when you sell

If you're foreign and sell for more than $1 million, the buyer withholds 15% of the price and sends it to the IRS (FIRPTA). On a $2 million sale, that's $300,000 you don't receive at closing until your return is reconciled. You can apply for reduced withholding in advance. We explain it in how to buy luxury property in Miami as a foreigner.

How to avoid surprises

1. Ask for last year's tax bill, but estimate yours from the purchase price, not from what the seller paid.
2. Get insurance quotes before the offer, including flood, with the FEMA zone for the exact address.
3. In a tower, ask for the reserve study and any special assessments approved or planned.
4. If you'll rent it out, work out the tax on rent and the building's rules before counting on that income.

Frequently asked questions

Method note

Property tax rates come from the Miami-Dade Property Appraiser for 2025: we combine the proposed totals with the adopted municipal rates. The taxable value at 85% of the price is our assumption. Documentary stamp taxes are the Florida Department of Revenue's. Insurance, fees and upkeep are illustrative assumptions, not market prices: every property is different. Data reviewed in October 2026. This guide is general information, not tax, legal or financial advice.