Monroe County Property Taxes Explained: What Key West Homeowners Need to Know

Owning property in Key West (or anywhere in Monroe County) means more than sunshine and saltwater breezes. It also means paying annual property taxes, which fund local schools, police and fire services, and county infrastructure. For homeowners new to the Keys, understanding how these taxes work (and why October is such an important month) can save you money and stress.

Property Tax Basics in Monroe County

Property taxes in Monroe County are calculated based on the purchase price or the assessed value of your property (set by the Monroe County Property Appraiser) multiplied by the millage rate (set by local taxing authorities such as the county, municipalities, and special districts).

• Millage Rate: One mill equals $1 of tax for every $1,000 of taxable property value.

• Average Rates: While rates vary depending on the municipality (Key West, Marathon, Islamorada, etc.), Monroe County typically falls in the 1%–1.5% range of assessed value.

Timeline: How Property Taxes Work in the Keys

1. January 1 – Property value is assessed.

2. March 1 – Deadline to file for exemptions (like homestead).

3. July/August – TRIM (Truth in Millage) notices are mailed out, showing your property’s assessed value, exemptions, and proposed tax rates.

4. October 31 – Property tax bills are mailed. This is the big month for homeowners to watch.

5. November–March – Taxes are due, with discounts for early payment.

Discounts for Early Payment

Monroe County offers discounts if you pay your property tax bill early:

• November: 4% discount

• December: 3% discount

• January: 2% discount

• February: 1% discount

• March: Full amount due (no discount)

Tip: Paying in November can save you hundreds, even thousands, depending on your tax bill.

Homestead Exemptions

If your Key West home is your primary residence, you may qualify for a Homestead Exemption, which can lower your taxable value by up to $50,000.

Benefits include:

• Lower annual property tax bill.

• Protection under Florida’s “Save Our Homes” cap, which limits annual increases in assessed value to 3% or the rate of inflation, whichever is lower.

Deadline: File your exemption application by March 1 for the tax year you want it to apply.

Why October Matters

October is when property tax bills are mailed in Monroe County. Homeowners should:

• Review their bill carefully for errors in assessed value or exemptions.

• Plan payments strategically to take advantage of early-payment discounts.

• Budget for taxes if using an escrow account (your lender may already be collecting monthly toward this).

For new buyers who closed earlier in the year, October may bring your first tax bill—make sure you know whether your lender will pay it through escrow or if it’s your responsibility.

Property taxes are part of the cost of living in paradise, but understanding how they work in Monroe County makes them a lot less daunting. October is the month to pay attention—review your bill, look for discounts, and make sure you’re taking advantage of exemptions like Homestead.

With a little planning, you’ll keep more money in your pocket while staying current on one of the most important homeowner responsibilities in the Florida Keys.