Florida property tax is calculated by multiplying a property's assessed value, set each year by the county property appraiser, by the millage rate set by local taxing authorities. Rates therefore vary by county and municipality. The Miami-Dade Property Appraiser publishes the current millage for each area, and the total for the City of Miami.
Key Points:
Homestead exemption: a property that qualifies as a Florida homestead may receive an exemption of up to about $50,000 of assessed value, part of which does not apply to school taxes. Homestead requires the owner to make the property a permanent primary residence, so it generally does not apply to second homes, investment properties, or purchases by non-residents.
Save Our Homes cap: for homesteaded property, annual increases in assessed value are limited to 3% or the change in inflation, whichever is lower.
Non-homestead property: investment properties and second homes are assessed at market value, with annual increases in assessed value capped at 10% for non-school taxes. The cap resets after a change of ownership, so the assessed value can rise to market value after a purchase.
Florida charges a documentary stamp tax on deeds that transfer real property. The rate is $0.70 per $100 of the sale price in most counties. In Miami-Dade County, the rate is $0.60 per $100, plus a surtax of $0.45 per $100 that does not apply to the transfer of a single-family home. The tax is calculated on each $100 or portion of the price.
Example on a $1,000,000 purchase in Miami-Dade:
Single-family home: about $6,000
Condominium or other property: about $10,500 ($6,000 plus a $4,500 surtax)
On a resale, the seller customarily pays the deed tax, though the contract can allocate it differently. Contracts for new developments often assign it to the buyer, so check the purchase agreement.
Buyers who finance also pay documentary stamp tax on the mortgage, at $0.35 per $100 of the loan amount, plus a nonrecurring intangible tax of $0.20 per $100 on new mortgages.
Florida has no state income tax, so it has no state capital gains tax. Federal capital gains tax still applies when a property is sold at a profit.
Short-term gains (property held one year or less): taxed as ordinary income, at federal rates of up to 37%.
Long-term gains (held more than one year): taxed at 0%, 15%, or 20%, depending on taxable income and filing status.
Additional taxes: higher-income U.S. taxpayers may owe a 3.8% net investment income tax, and depreciation claimed on rental property is generally taxed at rates of up to 25% when the property is sold.
Owners of a primary residence may exclude part of the gain if they meet ownership and use requirements, and investors may be able to defer gain through a like-kind exchange under IRS rules.
Non-U.S. sellers. Under FIRPTA, the buyer is generally required to withhold 15% of the sale price when a foreign person sells U.S. real property, with reduced or no withholding for certain lower-priced residential sales. The withholding is a prepayment, not the final tax: the seller reports the sale on a U.S. tax return, and the amount withheld is credited against the tax owed. A seller may apply to the IRS for a reduced withholding amount. How ownership structure affects withholding and total tax depends on the entity type, so it should be reviewed with a tax professional before purchase.
Rental income from a Florida property is subject to federal income tax. Florida has no state income tax, but the rental itself may carry sales and local taxes, depending on the length of the lease.
Short-term rentals: (six months or less): subject to Florida's 6% sales tax plus any county discretionary surtax, and to local taxes such as the tourist development tax, convention development tax, or municipal resort tax, depending on the location.
Long-term rentals: exempt from sales tax when the tenant has a written lease for continuous residence of more than six months. A lease of exactly six months does not qualify, and certain lease terms can disqualify a longer one.
Federal income tax: net rental income is reported on the owner's federal return, after deductions such as mortgage interest, property taxes, operating expenses, and depreciation.
Non-U.S. owners: rental income is generally subject to 30% U.S. withholding on gross rent, unless the owner elects to be taxed on net income, which involves a U.S. tax filing. This should be reviewed with a tax professional.
Some cities and condominium associations also restrict short-term rentals or require registration, so confirm local and association rules before buying a property to rent.
Florida has no state estate tax. Federal estate tax can still apply to U.S. real estate owned by someone who is neither a U.S. citizen nor domiciled in the United States, because U.S. real property is a U.S.-situs asset. For these owners, the exemption is $60,000, it is not adjusted for inflation, and rates reach up to 40%. U.S. citizens and U.S.-domiciled individuals, by comparison, have an exemption of $15 million in 2026.
The estate of a non-resident with more than $60,000 of U.S. assets generally files IRS Form 706-NA within nine months of death, even when a treaty eliminates the tax. The United States has estate tax treaties with a limited number of countries, including France, that can change the exemption or the calculation.
Whether an ownership structure, such as a company, trust, or partnership, reduces this exposure depends on the structure, the owner's country, and its other tax consequences, including income tax and gift tax. It should be reviewed with a tax professional before purchase.
Tax treatment depends on residency, ownership structure, and how a property is used. Globalty Investment represents buyers and sellers of Florida real estate and introduces clients to independent CPAs and tax attorneys, who advise on the tax side of a purchase or sale. To discuss a transaction, contact us, or read about ownership structuring.
This page is general information, not legal or tax advice. Consult a licensed attorney and CPA before making a decision.
