The sticker price is only half the story in Miami. Property taxes, insurance and association dues shape what a home actually costs to own — and they surprise buyers who move from other markets. Here's the plain-English version.
Property taxes and the homestead cap
Miami-Dade property taxes run roughly 2% of assessed value per year, though the exact millage varies by municipality. Two things every buyer should understand:
- The homestead exemption reduces the taxable value of your primary residence and, through the Save Our Homes cap, limits how fast the assessed value can rise each year (3% or the CPI, whichever is lower).
- The cap resets on sale. When you buy, the assessed value re-sets to market — so the taxes the previous owner paid are often far lower than what you'll pay. Always budget from the new assessed value, not the seller's tax bill.
Insurance and flood
Florida insurance is a real line item, especially near the water. Budget for:
- Homeowner's / wind coverage, which is higher in coastal and older properties.
- Flood insurance, required by lenders in FEMA flood zones — much of coastal Miami-Dade.
For condos, the association's master policy covers the building, but you'll still carry an HO-6 policy for the interior and contents.
HOA and condo dues
Association dues vary enormously — a full-service tower with valet, concierge, spa and security can run several dollars per square foot per month, while a smaller building runs far less. Dues fund the reserves that keep a building healthy, so low dues aren't automatically good. Always review the budget and reserve study.
Closing costs
Budget roughly:
- Buyers: 2–5% of the price (title, lender fees, taxes, recording, inspections).
- Sellers: brokerage commission plus title and documentary stamp taxes.
The bottom line
Two identical-priced homes can cost very different amounts to own once taxes, insurance and dues are counted. Before you make an offer, run the full monthly carrying cost — not just the mortgage. A local broker can pull the real tax and dues figures for any property so there are no surprises.
Browse Miami homes and condos for sale, or contact us for a full cost breakdown on anything you're considering.
