How Much Are Property Taxes in Key West?

Key West property taxes are parcel-specific. There isn’t one reliable percentage you can multiply by the purchase price. Your bill depends on taxable value, millage rates, exemptions and any non-ad valorem assessments. For a buyer, the important point is simple: don’t use the seller’s current tax bill as your future budget. Estimate the property after the sale and use your own exemption status.

How are Key West property taxes calculated?

The basic calculation looks like this:

For each taxing authority: taxable value × that authority’s millage rate ÷ 1,000. Add the resulting ad valorem taxes, then add any non-ad valorem assessments.

That formula is simple. The inputs are not.

The Monroe County Property Appraiser determines the parcel’s just value, assessed value and taxable value. Local taxing authorities set their millage rates. The Monroe County Tax Collector sends and collects the bill.

Here’s what those terms mean:

• Just value is the Property Appraiser’s estimate of market value.
• Assessed value is just value after any applicable assessment limitation.
• Taxable value is assessed value after exemptions.
• Millage is the tax rate stated in dollars per $1,000 of taxable value.
• Non-ad valorem assessments are parcel charges that are not based on value.

A Key West tax bill can include more than one taxing authority. The parcel’s location and exemptions also affect which taxable values and rates apply. That is why I would not quote a single “Key West tax rate” and treat it as your answer.

Why can the seller’s current tax bill be misleading?

Because the seller’s exemptions and assessment history do not automatically become yours.

Florida’s Department of Revenue tells buyers that after a change of ownership, the property is reassessed so the assessed value equals just value as of January 1 after the purchase, subject to the rules that apply to the parcel. The previous owner may have held the home for years with a homestead exemption and a large Save Our Homes benefit.

That can make the current bill look much lower than the buyer’s later bill.

The timing also matters. If you buy during the year, the first tax bill you see may still reflect the previous owner’s benefits for that calendar year. The more useful question is not, “What did the seller pay?” It is, “What is a reasonable estimate after the ownership change?”

For a buyer, I’d want both numbers:

1. The current tax bill, because it shows the parcel’s present taxes and assessments.
2. A post-sale estimate based on a realistic new assessed value and the buyer’s expected exemption status.

Don’t assume the purchase price will become the official assessed value dollar for dollar. The Property Appraiser makes that determination. But the purchase price is still an important input when you are building a conservative ownership budget.

What is the difference between just value, assessed value and taxable value?

These three numbers answer different questions.

The current parcel record may show a substantial gap between just value and assessed value. That gap can come from assessment limitations accumulated during the seller’s ownership.

If that gap resets after the sale, the buyer’s taxable value can rise even if the published millage rates do not.

That is the part buyers often miss.

How does the homestead exemption affect a Key West tax bill?

A qualifying owner who makes the property a permanent Florida residence may be eligible for the homestead exemption. It reduces taxable value, and it also establishes eligibility for the Save Our Homes assessment limitation.

The first $25,000 of the homestead exemption applies to all taxing authorities. A second exemption applies to qualifying assessed value above $50,000, is adjusted annually for inflation when the CPI change is positive, and does not apply to school district taxes. For the 2026 tax roll, the Florida Department of Revenue lists that additional exemption at up to $26,411.

Eligibility is personal to the owner and use of the property. A second home, vacation property or investment property does not receive a homestead exemption simply because the owner spends time there.

If you expect to claim homestead, confirm the filing requirements and deadline with the Monroe County Property Appraiser. Do not build the exemption into your budget until you understand whether you qualify.

What is Save Our Homes?

Save Our Homes limits annual increases in the assessed value of a qualifying homestead after the base year.

The limit is the lower of:

• 3% of the prior year’s assessed value; or
• The change in the Consumer Price Index used for the program.

This is an assessment limit, not a promise that the total tax bill cannot rise. Millage rates, non-ad valorem assessments, property changes and other factors can still affect what is due.

The bigger buyer issue is that the seller’s accumulated Save Our Homes benefit generally does not stay with the property after a qualifying ownership change. The Monroe County Property Appraiser’s Save Our Homes guidance explains that assessed value resets to just value in the following year when a reset event occurs.

That is why two nearby homes with similar market values can have very different tax bills.

What if the Key West home will not be my primary residence?

Then I would estimate it as non-homestead property unless the Property Appraiser confirms another exemption or classification.

Florida has a non-homestead assessment limitation that generally caps annual assessed-value increases at 10%. The Monroe County Property Appraiser notes that the cap does not apply to the School Board portion and that a change of ownership or use can reset the base year.

The practical point is the same: the existing owner’s capped assessment is not a dependable forecast for a new owner.

A Key West second home and a primary residence purchased at the same price can produce different taxable values because the owners may qualify for different exemptions and assessment limits.

Can I transfer a Save Our Homes benefit to Key West?

Possibly.

Florida portability may allow an eligible homeowner to transfer some or all of an accumulated Save Our Homes assessment difference from a prior Florida homestead to a new Florida homestead. It is not automatic, and the amount depends on the old and new properties and the program rules.

If you are moving from another Florida homestead, ask about portability before you finalize your tax estimate. The Monroe County Property Appraiser’s portability page explains the local filing process and eligibility timeline.

Portability can materially change the estimate. It should be verified with the Property Appraiser for your facts.

Are condo property taxes handled differently from house taxes?

A Key West condominium unit has its own parcel and tax bill. The unit owner’s property taxes are separate from condominium association assessments.

That distinction matters when you compare carrying costs:

• Property taxes go to the Tax Collector.
• Regular and special assessments go to the association.
• The association’s expenses do not replace the unit owner’s property-tax bill.
• Parking, storage or another separately deeded parcel may have its own tax treatment.

If you are comparing a condo with a house, put the tax estimate, association assessments, insurance and maintenance into one annual cost comparison. My guide to Key West condos versus single-family homes explains the other documents and expenses I would review.

Can non-ad valorem assessments change the total?

Yes.

A parcel’s bill may include non-ad valorem assessments. These are charges based on a unit of benefit or service rather than the parcel’s taxable value. They are listed separately from ad valorem taxes.

When you review the current bill, do not stop at the millage calculation. Look at the entire notice and identify every assessment. Confirm whether it is recurring, whether it applies to the exact parcel and whether any separately billed obligation exists.

This is another reason a percentage-of-price estimate can be incomplete.

How should a buyer estimate property taxes before making an offer?

Here is the process I would use.

1. Pull the exact parcel record. Confirm the legal parcel, current just value, assessed value, taxable value and exemptions.
2. Read the current tax bill. Separate ad valorem taxes from non-ad valorem assessments.
3. Identify the seller’s benefits. Look for homestead, Save Our Homes and any other exemptions or classifications.
4. Assume those benefits may not transfer. Replace them only with benefits you reasonably expect to qualify for.
5. Use a realistic post-sale value. The Property Appraiser decides the official value, but your estimate should account for a likely reset after the purchase.
6. Run the official local estimator. The Monroe County Property Appraiser provides a Tax Estimator in its site navigation.
7. Ask about portability. Do this if you are leaving another Florida homestead.
8. Leave room in the budget. Millage rates and assessments are set annually, and an estimate is not a guaranteed future bill.

I would keep the supporting parcel record, current bill and estimate with the rest of the due-diligence file. That makes it easier to explain the number to a lender, closing professional or tax adviser.

When are Monroe County property taxes due?

The Monroe County Tax Collector says tax notices are normally mailed on or before November 1 for the calendar year. The gross amount is due by March 31, and unpaid taxes become delinquent April 1.

The current early-payment discounts are:

• 4% in November
• 3% in December
• 2% in January
• 1% in February
• No discount in March

If a lender collects taxes through escrow, the annual bill still matters. Review the lender’s escrow analysis after the assessment changes. A low initial escrow based on the seller’s prior tax bill can lead to a later payment adjustment.

For current dates and payment rules, use the Monroe County Tax Collector’s property-tax page.

What should I review during a Key West purchase?

For property-tax due diligence, I would request or pull:

• The exact Monroe County parcel record.
• The latest Notice of Proposed Property Taxes, commonly called the TRIM notice.
• The latest paid tax bill.
• A list of current exemptions and assessment limitations.
• The ad valorem and non-ad valorem portions of the bill.
• A post-sale estimate using the buyer’s likely exemption status.
• Portability information when applicable.
• The contract’s tax-proration language.
• The lender’s proposed escrow amount, if financed.

The contract and closing statement address how taxes are prorated between buyer and seller. That proration is a closing calculation. It does not determine how the Property Appraiser will value the parcel for the next tax year.

Frequently asked questions

What percentage are property taxes in Key West?

There is no single percentage that reliably answers the question for every property. The bill depends on taxable value, the parcel’s applicable millage rates, exemptions and non-ad valorem assessments. Use the exact parcel and a post-sale estimate.

Will my Key West taxes equal the seller’s taxes?

Not necessarily. A change of ownership can reset assessed value, and the seller’s exemptions and accumulated assessment benefits may not carry over. The seller’s bill is useful history, not a complete forecast.

Does the homestead exemption apply to a second home?

Generally, no. Homestead is tied to a qualifying permanent residence. Confirm eligibility with the Monroe County Property Appraiser based on ownership, residency and use.

Can property taxes go up even with Save Our Homes?

Yes. Save Our Homes limits qualifying assessed-value increases; it does not freeze the total bill. Rates, assessments, additions, improvements and other changes can affect the amount due.

Where can I look up a Key West property-tax bill?

Use the Monroe County Tax Collector’s official property-tax lookup for bills and payments. Use the Monroe County Property Appraiser for parcel values, exemptions, assessment history and estimates.

The bottom line

The seller’s tax bill is the starting point, not the answer.

For a Key West buyer, the better estimate uses the exact parcel, a realistic post-sale assessed value, current millage, non-ad valorem assessments and the buyer’s own exemption status. If portability may apply, add that analysis before settling on the number.

If you are comparing Key West properties and want to build a realistic ownership-cost worksheet, contact Royal Palms Realty. I’ll help you gather the parcel records and identify the tax questions that need an official answer before you commit.