Renovating Your Florida Keys Home? Watch Out for Higher Property Taxes

Thinking About a Big Renovation?

Renovating your home can be exciting. You get to improve your living space, boost your home’s value, and enjoy modern updates. But before you start, there’s something important to keep in mind: your property taxes may go up.

A recent article from Realtor.com explains how big home improvements can lead to bigger tax bills in Florida. And if you live in the Florida Keys, this matters even more.

How Property Taxes Work in Florida

In Florida, your property tax is based on the assessed value of your home. Each year, the county property appraiser updates this value. If the value goes up, your taxes might, too.

If you live in your home full-time, you may have the Homestead Exemption. This helps lower your taxable value. You also get a benefit called Save Our Homes, which caps yearly increases in assessed value to 3% (or less, depending on inflation).

However, here’s the catch: these limits don’t apply to new improvements. So if you add something big to your home, your taxes can jump.

What Types of Renovations Could Raise Your Taxes?

Not every project will affect your tax bill. But some common upgrades often do, such as:

• Adding more square footage

• Building a guest house or detached garage

• Putting in a pool or outdoor kitchen

• Doing major kitchen or bathroom remodels

• Upgrading the structure or layout of your home

These improvements usually increase your home’s market value—and your assessed value with it.

Why This Matters More in the Florida Keys

Living in the Florida Keys comes with some unique factors:

• High property values: Even small changes can result in large tax increases.

• Tight county budgets: Monroe County depends heavily on property taxes to fund services.

• Strict rules: Environmental and zoning regulations may already make renovations more expensive and time-consuming.

That means when you do improve your home, you’re more likely to see those changes reflected in your tax bill.

How to Plan Ahead

Before starting a major renovation, here are a few tips:

1. Talk to the county appraiser: Ask how your project could affect your tax bill.

2. Review your Homestead Exemption: Make sure you’ve applied if your home is your primary residence.

3. Budget for the long term: Include possible tax increases in your planning—not just construction costs.

4. Keep good records: Document what was added versus what was repaired. Not all upgrades affect taxes equally.

Final Thoughts

Improving your Florida Keys home can be a great investment. Just make sure you understand the full cost. A higher property tax bill might come with the new pool, kitchen, or guest house.

By planning ahead, you can make smart renovation choices—and avoid unwanted surprises later.