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Miami Real EstatePublished February 26, 2026
Tax benefits for New Construction: Homestead Exemption | Save Our Homes (SOH) cap |Portability (The "Hidden" Discount)
As a real estate broker, I’ve seen many buyers get caught off guard by the "tax reset" that occurs after a purchase in Florida. Since you are looking at a sales value of $1,500,000 for a property in zip code 33137 (Miami) with a Homestead Exemption, the math changes significantly from the previous owner’s bill.
In Florida, the year after you buy a home, the assessed value "resets" to the market value. However, the Homestead Exemption immediately provides a deduction from that value and, more importantly, triggers the Save Our Homes (SOH) cap for future years.
Annual Property Tax Estimate (2026)
Based on a $1,500,000 Purchase Price & Homestead Status
| Description | Calculation / Value | Amount |
| Assessed Value (Market) | Sales Price | $1,500,000 |
| Homestead Exemption 1 | First $25,000 (All Taxes) | -$25,000 |
| Homestead Exemption 2 | Second $25,000 (Non-School) | -$25,000 |
| Taxable Value (School) | $1,500,000 - $25,000 | $1,475,000 |
| Taxable Value (Non-School) | $1,500,000 - $50,000 | $1,450,000 |
| Estimated Millage Rate | Approx. 1.7% – 1.9% | ~18.5 mills |
| Ad Valorem Subtotal | Taxable Value × Millage | $26,825 |
| Non-Ad Valorem Fees | Garbage, Lighting, etc. | ~$1,000 |
| Total Estimated Annual Tax | Sum of above | $27,825 |
Critical Broker Insights
1. The "Save Our Homes" Benefit
While $27,825 is your starting point, your taxes are now "protected." Because you have the Homestead Exemption, your assessed value cannot increase by more than 3% per year (or the CPI, whichever is lower). If the market value of your home jumps to $3,500,000 in five years, you will still be paying taxes based on a value that only grew by 3% annually from your $1.5M base.
2. Portability (The "Hidden" Discount)
If you are moving from another home in Florida that you owned and homesteaded, you may have Portability. You can "port" up to $500,000 of tax savings from your old home to this one.
Example: If your previous home was worth $800k but taxed at $500k, you have $300k in portability. This would drop your taxable value on the new home from $1.5M down to $1.2M, saving you roughly $5,500 per year additionally.
Monthly Carry Summary
- Insurance (Est): ~$1,850/mo
- Property Tax (Est): ~$2,319/mo
- Total Escrow Estimate: $4,169/month
The new owner may be eligible for a 10-year Property tax benefit exception for Historic designation. More info in our next newsletter.
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