Are you considering a move from Maryland to sunny Florida? 🏡 If so, you’re probably curious how the cost of owning a home stacks up between the two states.
In this deep dive, we’ll compare property tax rates and overall homeownership costs in Florida vs. Maryland. We’ll break things down county by county, explain homestead exemptions and property tax caps, and even run the numbers on potential savings using recent home price data.
By the end, you’ll see how a move south could affect your wallet — and whether those palm trees come with lower taxes attached. Let’s dig in!
1. Statewide Property Tax Rates
Florida’s average effective property tax rate is approximately 0.79%, which is significantly lower than Maryland’s 1.06%. That may seem like a small difference, but on a $400,000 home:
In Florida, you’d pay about $3,160/year.
In Maryland, the same home could cost $4,240/year in property taxes.
That’s over $1,000 saved annually, just by choosing to own property in Florida. Over time, the savings compound—especially if you plan to retire or stay put for a while.
2. County-by-County Property Tax Comparison
Tax rates vary dramatically by county in both states.
🏝️ Florida Counties
| County | Median Home Price | Effective Tax Rate | Median Annual Tax |
|---|---|---|---|
| Walton | $376,400 | 0.45% | $1,709 |
| Orange (Orlando) | $358,300 | 0.78% | $2,795 |
| Broward (Ft. Laud.) | $380,400 | 0.95% | $3,610 |
| Miami-Dade | $425,400 | 0.83% | $3,516 |
Even Florida’s most expensive counties rarely exceed 1% in effective property tax rate.
🦀 Maryland Counties
| County | Median Home Price | Effective Tax Rate | Median Annual Tax |
|---|---|---|---|
| Talbot | $319,650 | 0.71% | $2,231 |
| Anne Arundel | $376,600 | 0.97% | $3,553 |
| Montgomery | $471,000 | 1.11% | $5,416 |
| Baltimore City | $147,800 | 2.31% | $3,187 |
In Maryland, several counties—including Baltimore City—have some of the highest property tax rates in the country, with effective rates over 2%.
3. Homestead Exemptions & Property Tax Caps
✅ Florida
$50,000 Homestead Exemption reduces your taxable home value.
Save Our Homes Cap: Taxable home value can increase only 3% per year, no matter how fast your market value rises.
Portability: If you move within Florida, you can transfer your tax savings to your new home.
⚖️ Maryland
Homestead Tax Credit limits annual assessment increases to 10% or less, depending on the county.
Prince George’s: 3%
Baltimore County: 4%
Ocean City: 0%
Must apply for the credit; benefits vary by location.
Key Takeaway: Florida’s cap is statewide, predictable, and more aggressive—locking in long-term savings.
4. Real-World Tax Savings Example
Let’s break down tax savings for a median home in each state:
| Maryland ($496,500) | Florida ($433,600) | |
|---|---|---|
| Effective Tax Rate | 1.06% | 0.79% |
| Estimated Tax Bill | $5,260 | $3,425 |
| Annual Savings | — | $1,835 |
| 5-Year Savings | — | $9,175+ |
That’s $9,000+ back in your pocket over 5 years—just from taxes alone. And that doesn’t even include the savings from Florida’s exemptions and caps.
5. Why It Matters
Property taxes aren’t just another line item—they directly affect:
Your monthly housing budget
Your retirement planning
How much home you can afford or invest in
If you’re relocating, downsizing, or simply looking to stretch your dollar further, Florida offers predictable, long-term tax advantages for homeowners.
