This November, Florida voters will decide on an amendment that raises the primary-residence exemption from $50,000 to $250,000 and opens a path toward eliminating property tax altogether. To anyone watching the market from abroad, that sounds like great news: buy in Miami and stop paying property tax. It is worth reading the fine print before celebrating.
The relief was designed for the resident who votes in local elections, with an established primary residence. The foreign buyer purchasing a second home, a vacation condo or a rental property almost never qualifies. This guide explains, in practical terms, how property taxes in Miami actually work for someone who is not a resident: what you pay, why the homestead exemption is out of reach, and what you should budget for before you sign.
What Florida property tax is and how it is calculated
Florida's property tax is an annual ad valorem levy: it is calculated on the property's assessed value. It is not set by the state, but by each local government. The county, the city, the school district and other special districts each add their rate in what is known as the millage, and that combined millage is applied to the assessed value to determine the year's bill.
That is why there is no single answer to how much property tax costs in Florida: it depends on the municipality. Two properties of the same price in different parts of Miami-Dade can owe different amounts. As a practical budgeting rule — not an official figure — a buyer without a homestead exemption does well to set aside roughly 1.5% to 2% of the property's value per year, and confirm the exact millage for the county and city with an advisor before closing. It is a recurring cost, not a one-time payment: it follows the property every year you own it.
The homestead exemption: why it almost never applies to the foreign buyer
The homestead exemption is the mechanism that reduces the taxable base of a home in Florida, and it sits at the center of the current political debate. But it has a requirement that decides who qualifies and who does not: the property must be the owner's primary, permanent residence. A second home does not qualify. A rental property does not either. An investment purchase, even less so.
That happens to be the profile of most foreign buyers. If you do not reside permanently in Florida, the homestead exemption is not available to you, and the November amendment does not change that starting point. There is a second, less visible but more important long-term consequence: the annual assessment cap known as Save Our Homes, which limits the growth of assessed value to 3% a year, only protects homestead-exempt homes. Non-homestead property runs under a different, higher cap, so its assessed value — and therefore its tax bill — can grow faster year after year. For an investor, that compounded difference over a decade matters more than any starting exemption.
What changes with the November 2026 amendment
The proposal on the ballot raises the primary-residence exemption from $50,000 to $250,000 and lowers the annual cap on non-homestead assessment growth from 10% to 5%. It is real relief for the resident with homestead, and a marginal improvement in the cap on non-homestead property. But it requires primary-residence status to be established before the end of 2026, and it leaves second homes and rental property outside the main benefit. We cover the political detail of the proposal — where it comes from and how realistic it is — separately in Florida zero property tax: the DeSantis plan explained.
The investor does not receive the relief — they fund it
Here is the uncomfortable point. Florida TaxWatch itself warns that the reform deepens a burden shift that already moves close to $10 billion a year, from the primary home toward everything else: rental property, second homes and commercial assets. There has even been talk of replacing part of the levy with sales tax, a tax everyone pays, including tenants and tourists.
Put another way: when the state stops charging the resident-voter, it looks to recoup that money elsewhere, and that "elsewhere" tends to be whoever does not vote in the local election. By design, the foreign buyer ends up on the side that pays the difference. It is a pattern that repeats beyond Florida — Chile, for instance, is debating eliminating property tax on primary residences, and the underlying question is the same: who covers what the municipality stops collecting. But for anyone buying in Miami, the local conclusion is what matters.
What an international buyer should actually budget for
The prudent read is simple. The relief exists, but it is not for you if you are buying as an investor or as the owner of a second home. The practical recommendation:
- Model property tax as a recurring cost from year one, not a footnote. On a rental property it flows straight into your cash-flow math and your cap rate.
- Do not assume the homestead exemption unless you will live in the property permanently and establish residency.
- Expect the assessed value of a non-homestead property to grow faster than a resident neighbor's, and project that over several years.
- Confirm the specific municipality's millage before closing: the difference between two areas of Miami-Dade can change your returns.
A serious investor does not pencil in a savings they will not receive; they model the cost they could inherit when the state looks to recoup what it stopped collecting. Understanding property taxes in Miami before you buy is not a formality — it is part of deciding well. If you want to see how this number plays out in a concrete case, it is worth reviewing it alongside the full structure of the purchase — something we cover in the guide to buying a house in Miami as a foreigner and in the analysis of how a property in Miami earns rental income in dollars.
Frequently asked questions
How much is property tax in Florida?
There is no single rate: each municipality sets its own millage and applies it to the assessed value. As a practical budgeting rule, a buyer without a homestead exemption should set aside roughly 1.5% to 2% of the property's value per year, and confirm the exact millage for the county and city before closing.
Can a foreigner get the homestead exemption in Florida?
Generally no. The homestead exemption requires the property to be the owner's primary, permanent residence. A second home, a rental property or an investment purchase does not qualify — which describes most foreign buyers who do not reside permanently in Florida.
Does property tax rise every year for a non-resident?
It can rise faster than for a resident. The annual Save Our Homes assessment cap (3%) only protects homestead-exempt homes. Non-homestead properties run under a different, higher cap, so the assessment — and the tax — can grow faster year over year.
Does eliminating property tax in Florida benefit the foreign buyer?
The proposed relief targets residents' primary homes, not investment property or second homes. The foreign buyer rarely qualifies and could even inherit a larger burden if the state replaces part of the tax with other levies. It is worth modeling the cost, not projecting a savings you will not receive.