Miami Property Taxes & Closing Costs (2026)

No Miami investment case is complete without its tax map. The good news: closing costs at purchase are relatively low (1–1.5% for cash buyers). What needs attention is the annual property tax (effective ~1.7% in Miami-Dade) and the FIRPTA withholding applied to foreign sellers at exit.

This guide gathers what you pay at purchase, during ownership and at sale into one table, and explains the items specific to foreign buyers.

The Tax Map in Three Stages

How the Annual Property Tax Is Calculated

• The rate depends on the municipality: ~17.6 mills across county areas, and for 2026 ~20.03 mills (≈2%) inside the City of Miami — with ~6.6 mills funding schools.
• Tax is levied on the county Property Appraiser's assessed value, which tracks close to the purchase price. (The county's 2026 taxable value reached $540.7 billion, +5.5%.)
• Bills also carry non-ad valorem items (waste, lighting, fire): $200–800 a year by area; the homestead exemption does not reduce them.
• Example: on a $500,000 home, annual tax runs roughly $8,800–10,000 depending on the municipality.

Worked carrying cost — a $1,000,000 Brickell condo: property tax ~$20,000 + HOA (~$1,000/mo) $12,000 + insurance ~$6,000 + non-ad valorem ~$400 ≈ ~$38,000 a year to own. If rental income is the goal, whatever rent clears that floor is your true cash flow — see the neighborhood-level yield math in our Miami investment guide.

Closing Costs, Item by Item

• Title insurance: the biggest item; ~0.5–0.7% of the price.
• Escrow/settlement fee: the closing agent's service charge.
• Recording fees: registering the deed with the county.
• Inspection + survey: inspection ~$300–500; houses add a boundary survey.
• If financed: lender origination, appraisal and the documentary stamp on the note come on top — that is what pushes totals to the 1.5–2.5% band.

The Tax Calendar and Early-Payment Discounts

Florida bills property tax in November and rewards early payment: 4% in November, 3% December, 2% January, 1% February; the deadline is March 31. On a $20,000 bill, paying in November saves $800 — for overseas owners, a standing autopay instruction is the practical fix.

The Homestead Exemption: The Critical Gap for Foreign Buyers

Florida grants primary residents a $51,411 homestead exemption in 2026 plus a 3% annual cap on assessment growth. Foreign investors cannot claim it — you will pay more each year than a local living in the same home. Run your yield math on the unexempted rate.

FIRPTA: The Withholding Waiting at Exit

• When a non-US-resident sells, 15% of the sale price is withheld at closing.
• It is a security deposit, not a final tax: filing a US tax return reconciles it against the real gain and refunds the excess.
• An ITIN is required for the refund; applying before closing speeds it up.
• Reducing the withholding: if your true tax is below 15%, applying to the IRS for a withholding certificate (Form 8288-B) before closing can cut the deduction instead of waiting for a refund — plan it with your tax advisor.

Other Items Specific to Foreign Buyers

• LLC setup: common for liability and estate planning; setup plus annual obligations run $3,000–8,000.
• Financing cost: foreign-national mortgage rates exceed local products; down payments 25–30%.
• Rental income filing: annual federal return with an ITIN; expenses (tax, HOA, insurance, depreciation) are deductible.

The Effect on Net Yield: A Realistic View

A 5.5–6% gross yield typically lands at 3.5–4.5% net after property tax, HOA and insurance. In return, Miami balances with dollar-based appreciation, a deep tenant pool and the tax-deductibility of expenses. The right math: annual cash flow from "gross rent − (tax + HOA + insurance + management)" plus expected appreciation.

Find projects with strong after-tax returns in our Miami listings, or reach our advisors to build your closing cost sheet together.