Miami taxes are shaped by one big fact and several smaller ones: Florida charges no personal income tax, so the money the government needs comes from property tax, a 7.5% combined sales tax in Miami-Dade County, and a handful of specialized local levies. The savings on the income side are real, but they only materialize if you file the right forms on time, especially the homestead exemption by March 1 and your property tax payment early in the discount window.
No State Income Tax, If You Actually Live Here
Florida is one of seven states with no personal income tax. Wages, salaries, dividends, interest, and retirement distributions are all free from any state-level income levy.1State of Florida.com. Florida Tax Guide There is also no state inheritance tax and no effective estate tax, since the statute on the books was tied to a federal credit that Congress eliminated in 2005.2Florida Legislature. Florida Statutes 198 – Estate Taxes
That advantage only reaches you if you are a Florida tax resident, and your former state may contest the claim. The starting move is recording a sworn Declaration of Domicile with the Miami-Dade County Clerk of Courts. The form must be notarized, and the recording fee is $10.3Miami-Dade Clerk of Courts. Declaration of Domicile Then back it up: a Florida driver’s license, Florida vehicle registration, Florida voter registration, and an IRS address change on Form 8822.
New York, New Jersey, and California routinely audit former residents who claim Florida domicile. They look at where you spend time, where your family lives, where your doctors and advisors are, and where your possessions sit. Spending at least 183 days physically in Florida helps rebut their residency presumption, but the day count alone is not enough. Auditors apply a “closer connection” test that weighs the whole picture. Keep a daily location log, hold Florida receipts, and make sure bank statements, utility bills, and employer records all point to your Miami address. People who skip this paperwork often lose audits they should have won.
Sales Tax at the Register
The state sales tax rate is 6%, and Miami-Dade adds a 1.5% discretionary surtax, for a combined 7.5% on most retail purchases.4Florida Dept. of Revenue. Florida Sales and Use Tax5Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026 The county surtax caps out, though. It only applies to the first $5,000 of any single item of tangible personal property. On a $15,000 piece of furniture, you pay 6% state tax on the full price but 1.5% surtax on only $5,000.
Groceries for home consumption are exempt from both the state tax and the county surtax, as are prescription medicines and most medical services.6Florida Legislature. Florida Statutes 212.08 – Sales, Rental, Use, Consumption, Distribution, and Storage Tax; Specified Exemptions Restaurant meals are fully taxable at the combined 7.5% rate.
Buy something taxable online from an out-of-state seller that does not collect Florida tax, and you owe use tax at the same rate. Any sales tax paid to another state credits against what you owe here, so you pay only the difference. Individuals report use tax on Form DR-15MO. Payments are due the first day of the month after the quarter in which you bought the item and are late after the 20th. No filing is required if the tax owed is under one dollar.7Florida Dept. of Revenue. Consumer Information
Property Tax and the Homestead Exemption
For most homeowners in Miami, property tax is the largest tax bill of the year. The Miami-Dade Property Appraiser sets the market value of every parcel as of January 1. Your bill equals the assessed value, minus exemptions, multiplied by the combined millage rate set by the county, the school board, and your city.8Property Appraiser of Miami-Dade County. Notice of Proposed Property Taxes (TRIM Notice) A mill is $1 per $1,000 of assessed value.
The homestead exemption is the single most valuable break available. To qualify, you must own the property, use it as your permanent primary residence as of January 1, and file your application with the Property Appraiser by March 1.9Miami-Dade County Property Appraiser. Homestead Exemption Late filings are accepted through September 20, but they can require a petition to the Value Adjustment Board and a $15 fee.
Starting in 2025, Florida voters approved Amendment 5, adding an annual inflation adjustment to the second portion of the exemption. For tax year 2026, the total homestead exemption is $51,411. The first $25,000 applies against all taxing authorities. The remaining amount, roughly $26,411 for 2026, applies against all authorities except the school district and only on assessed values above $50,000.9Miami-Dade County Property Appraiser. Homestead Exemption That second portion is recalculated each year based on the Consumer Price Index.
Save Our Homes and Portability
Once your home has a homestead exemption, the Save Our Homes provision caps the annual rise in assessed value at 3% or the change in the Consumer Price Index, whichever is lower. The 2025 cap was 2.9%.10Miami-Dade County Property Appraiser. Save Our Homes The cap applies to assessed value, not market value, so a gap opens between what the house is worth and what you are taxed on.
That gap is your Save Our Homes benefit, and you can carry up to $500,000 of it to a new Florida home through portability. You have to establish a homestead on the new property within three years of January 1 of the year you abandoned the old one.11Florida Department of Revenue. Save Our Homes Assessment Limitation and Portability Transfer Downsizing to a less expensive house prorates the transferred benefit. Miss the three-year window and the accumulated savings are gone permanently.
When to Pay the Property Tax Bill
Bills are mailed on or before November 1 and can be paid through March 31 without penalty. Florida rewards early payment on a sliding scale:12Miami-Dade County Office of The Tax Collector. Early Payment Discounts
- November: 4% discount
- December: 3% discount
- January: 2% discount
- February: 1% discount
- March: full amount, no discount
On a $10,000 bill, November payment saves $400 compared to March. Mailed payments use the postmark date; in-person payments use the date received. Taxes go delinquent on April 1, and interest plus advertising fees begin to accrue.13Miami-Dade Tax Collector. Real Estate Taxes Prolonged non-payment leads to a tax certificate sale, where investors cover your delinquent taxes in exchange for an interest-bearing lien on your property. An installment plan is available for bills over $100 if you apply with the Miami-Dade Tax Collector by April 30 of the year before the taxes are due.14Florida Department of Revenue. Application for Installment Payment of Property Taxes
Extra Exemptions for Seniors, Disabled Residents, and Widows
Beyond the standard homestead, Miami-Dade offers several targeted breaks. All require filing with the Property Appraiser by March 1.
Homeowners 65 or older may qualify for an additional exemption of up to $50,000 if household income does not exceed $38,686 for 2026. A second version can exempt the entire assessed value for long-term Florida residents who have owned property in the state for at least 25 years and whose home has a market value under $250,000. Both must be adopted by local ordinance to apply in a given jurisdiction.15Florida Department of Revenue. Two Additional Homestead Exemptions for Persons 65 and Older
Residents with total and permanent disabilities who hold a homestead can qualify for a full exemption from property taxes. Quadriplegic homeowners receive it regardless of income. Those who are paraplegic, hemiplegic, legally blind, or require a wheelchair for mobility qualify if household adjusted gross income stays under $37,712 for 2026, and two physician certificates are required.16Property Appraiser of Miami-Dade County. Exemptions for Persons Totally and Permanently Disabled
Widows and widowers who are permanent Florida residents qualify for a $5,000 exemption on any property they own, up from $500 before 2023.17Florida Department of Revenue. Other Property Tax Benefits Brochure
Taxes When You Buy or Sell Real Estate
Every real estate transaction in Miami-Dade triggers Florida’s documentary stamp tax. Rates depend on the document and the property:
- Deeds for single-family homes: $0.60 per $100 of the sale price. The $0.45 per $100 county surtax does not apply to single-family residences.18Florida Department of Revenue. Documentary Stamp Tax
- Deeds for condos, commercial, or multi-family property: $0.60 per $100 plus the $0.45 per $100 Miami-Dade surtax, for a combined $1.05 per $100.19Florida Department of Revenue. Documentary Stamp Tax
- Mortgages: $0.35 per $100 of the debt secured, regardless of property type.
A $500,000 single-family home purchase carries $3,000 in deed stamps. A $500,000 condo runs $5,250 with the surtax. A $400,000 mortgage adds another $1,400. Who pays what is negotiable, though Miami custom usually places deed stamps on the seller and mortgage stamps on the buyer.
Taxes for Miami Businesses
Florida levies a 5.5% corporate income tax on the net income of C-Corporations doing business in the state. The first $50,000 of net income is exempt, so many small corporations owe little or nothing.20Florida Department of Revenue. Corporate Income Tax S-Corporations, partnerships, and LLCs taxed as pass-through entities federally generally do not owe it. Calendar-year C-Corporations must file Form F-1120 or request an extension by May 1 of the following year.21Florida Department of Revenue. Corporate Income Tax Due Dates
Businesses that own equipment, furniture, or fixtures in Miami-Dade also owe Tangible Personal Property tax. Anyone holding TPP as of January 1 must file a return with the Property Appraiser by April 1.22Property Appraiser of Miami-Dade County. Filing Your Tangible Personal Property Return The first $25,000 of assessed TPP value is exempt. If you file an initial return and stay under $25,000, the annual filing requirement is waived automatically. New businesses must file that initial return regardless of value.23Florida Legislature. Florida Statutes 196.183 – Exemption for Tangible Personal Property Not filing at all triggers a 25% penalty; late filing adds 5% per month up to 25%; and omitted items on a filed return draw a 15% penalty on the tax attributable to them.24Florida Legislature. Florida Statutes 193.072 – Penalties for Improper or Late Filing of Returns and for Failure to File Returns
Separately, every business operating in Miami-Dade needs a Local Business Tax Receipt from the Miami-Dade County Tax Collector.25Miami-Dade Tax Collector. Local Business Tax Receipt If the business sits inside an incorporated city such as Miami, Miami Beach, or Coral Gables, a second receipt from that municipality is required. Unincorporated-area businesses also need a Certificate of Use and Occupancy.26Miami-Dade Tax Collector. Requirements Fees depend on business type and location rather than income. Operating without the receipts can bring fines and forced closure.
Short-Term Rental Tax
Miami-Dade charges a 6% Tourist Development Tax on rentals of six months or less, including hotel rooms, vacation rentals, Airbnb and Vrbo listings, and timeshare stays. The 6% is actually three components: a 3% convention development tax, a 2% tourist development tax, and a 1% professional sports facilities franchise tax.27Florida Legislature. Florida Statutes 212.0305 – Convention Development Taxes28Miami-Dade County. Tourist and Restaurant Taxes Some municipalities differ: Surfside and Bal Harbour sit at 4%, Miami Beach at 7%.29Florida Department of Revenue. Local Option Transient Rental Tax Rates
The TDT stacks on top of the 7.5% combined sales tax, so a guest in most of Miami-Dade pays 13.5% in total tax on the nightly rate, and 14.5% in Miami Beach. Hosts and operators are responsible for collecting and remitting the TDT to the Miami-Dade County Tax Collector. Platforms like Airbnb and Vrbo collect in some cases and not others; the host remains liable if the platform does not.
Other Local Levies Worth Knowing
Cell phone and similar telecom services in Miami-Dade carry the Florida Communications Services Tax, which combines a 7.44% state portion with a local rate of roughly 5.72% in most of the county, pushing the total above 13% on your monthly bill.30Florida Dept. of Revenue. Florida Communications Services Tax31Florida Department of Revenue. Changes in Local Communications Services Tax Rates Effective January 1, 2026 Standalone internet access is exempt under federal law, though bundled packages combining internet with voice or television may be partially taxable. The tax is collected by the provider and passed through on your bill.
One recent change for commercial tenants: Florida’s separate sales tax on commercial rent was repealed effective October 1, 2025, so no state sales tax or discretionary surtax applies to office, retail, or warehouse rent for periods beginning on or after that date.32Florida Department of Revenue. Sales Tax on Commercial Rentals Repealed Effective October 1, 2025 Verify that any lease signed before the repeal reflects the change for October 2025 billing and after.