Miami-Dade Property Tax Primer
Decoding millage rates, the Save Our Homes cap, and reassessment shock.
Core Assumptions & Market Data
Property taxes in Miami-Dade are the silent killer of out-of-state pro-formas. Florida law mandates that properties are reassessed at just value (roughly 80-90% of market value) in the year following a sale. This removes any accumulated tax caps enjoyed by the previous owner.
If you acquire a commercial building from an owner who held it for 15 years, their assessed value is artificially low due to the 10% non-homestead cap. Upon closing, your tax bill will violently reset to the new purchase price, radically altering the Net Operating Income (NOI) calculation.
Common Mistakes
- Calculating future taxes based on the seller's current tax bill. Always calculate based on the purchase price multiplied by the local millage rate (typically around 1.8% to 2.2%).
- Missing the window to appeal. The Value Adjustment Board (VAB) has strict deadlines in September. Filing an appeal is standard practice for institutional owners to suppress holding costs.
Tax Reassessment Tool
*Assumes assessed value is roughly 80% of purchase price in year 1.
The natural next step is to evaluate your own numbers or consult our primary reporting.