Islamorada Property Taxes Set to Rise ~9% in FY2027

If you're eyeing a home in the Florida Keys, Islamorada's upcoming budget decisions are worth watching closely.

At its first budget hearing in early September, the Islamorada Village Council approved a tentative millage rate of 2.7231 mills. At that rate, the village would bring in just over $20 million in property tax revenue for the next fiscal year — a jump of close to 9% over what was collected in the prior year. The driver behind that increase isn't a dramatic rate hike; it's rising property values across the island community. When assessed values climb, even a stable or modestly adjusted millage rate can produce meaningfully larger tax bills for owners.

A follow-up hearing is scheduled for September 21, where council members will have another opportunity to refine the rate before it's finalized. It's not uncommon for local governments to make small adjustments between the tentative and final votes, so the adopted rate could shift slightly before the fiscal year begins.

For prospective buyers, this is a useful reminder that the Florida Keys carry some of the highest real estate price tags in the state, and annual ownership costs — including property taxes — tend to reflect that premium. Islamorada in particular is a desirable, village-incorporated community stretched across several islands between Key Largo and Marathon, known for world-class sportfishing, boutique resorts, and a laid-back coastal lifestyle. Demand for property there remains strong, which is precisely what keeps assessed values — and by extension, tax obligations — trending upward.

You can find more detail on the budget process in the original report.

What this means if you're moving to Florida: In high-demand markets like the Florida Keys, rising property values translate directly into higher annual tax bills, so buyers should budget not just for purchase price but for ownership costs that are likely to keep climbing year over year.