Tangible Personal Property Tax: Miami Rentals

Last updated: July 2026

If you own a furnished rental in Miami-Dade, the tangible personal property tax is a line item you have to underwrite. It is a county property tax on the physical business assets used to produce income: the furniture, appliances, electronics, and equipment inside a rental unit. Florida requires owners who lease, lend, or rent property to file a Tangible Personal Property Tax Return, Form DR-405, with the county property appraiser by April 1 each year [1][2]. Filing that first return is also how you claim the $25,000 exemption that Florida voters added to the constitution in 2008 [1][3]. The furnishings in your own home are not taxed, but the same couch and refrigerator inside a rental you own for income are reportable assets. This article explains what the tangible personal property tax covers, how the DR-405 works in Miami-Dade, and where furnished short-term and vacation rentals fit.

What tangible personal property tax actually taxes

Florida defines tangible personal property as all goods, chattels, and other articles of value capable of manual possession whose chief value is intrinsic to the article itself [1]. In plain underwriting terms, that means the physical things that are not real estate and not your personal-use household goods. For a rental operator, the taxable list is specific: furniture, fixtures, appliances, machinery, tools, supplies, signs, and leased equipment used in a business or to earn income, including for rental properties both short and long term [2].

The tax is separate from the real property tax you already pay on the land and building. Your annual real estate tax bill covers the structure. The tangible personal property tax covers what is inside it and is used to generate rent.

The personal-residence line

Here is the distinction that trips up first-time investors. The furnishings in a personal residence are not subject to this tax. Put the identical furniture into a property you own to produce income, and it becomes reportable tangible personal property. The asset did not change. The use did. That is why a homeowner never files a DR-405, but the owner of a furnished vacation rental generally does.

The DR-405 return and the April 1 deadline

The filing instrument is Form DR-405, the Tangible Personal Property Tax Return. Anyone who owns taxable tangible personal property on January 1, and who operates as a proprietorship, partnership, or corporation, is a self-employed agent or contractor, or who leases, lends, or rents property, must file the return with the property appraiser by April 1 [2].

Assets are reported at 100% of their original total cost, including sales tax, transportation, handling, and installation charges if incurred [2]. You report what you paid, not what you think the used item is worth today. The property appraiser then applies depreciation schedules to reach an assessed value. If you operate units at more than one location, the assets of each location are listed on separate returns [2].

Miami-Dade accepts the return online through the property appraiser, and returns filed after the April 1 deadline are subject to penalties [1]. For an investor, that penalty exposure is avoidable and belongs in your operating calendar next to insurance renewals and the property tax installment schedule.

The $25,000 exemption and why the first return matters

Florida voters approved Amendment 1 in January 2008, a property tax package that created a $25,000 exemption for tangible personal property [3]. In Miami-Dade, that exemption is applied to the first $25,000 in assessed value of your tangible personal property [2].

The mechanics matter here. The Florida Department of Revenue is direct: in general, all tangible personal property taxpayers must file an initial return to receive the exemption [1]. You do not get the $25,000 automatically. You claim it by filing a timely DR-405. Miss the April 1 deadline in the first year and you can forfeit the exemption for that year.

There is a practical follow-on. Once you have filed an initial return and your assessed value stays at or below the $25,000 threshold, the property appraiser may grant a filing waiver so you are not required to file every subsequent year [1][2]. For a single modestly furnished unit, the furnishings may assess below $25,000, which means that after the first correct filing the ongoing tangible personal property tax can be zero. That outcome only exists if the first return is filed.

How this lands on a furnished Miami rental

Most long-term unfurnished rentals in Miami-Dade carry little tangible personal property beyond appliances, so the exemption frequently absorbs the assessment. The calculation gets more real with furnished units. A fully furnished short-term or vacation rental carries beds, sofas, dining sets, televisions, kitchenware, and sometimes leased equipment. Aggregate the original cost across a whole unit and a portfolio can push past the $25,000 exemption per location, at which point there is a bill to underwrite.

If you are running a furnished-rental strategy in a building or neighborhood that allows short stays, treat the DR-405 as part of the same due diligence as zoning and rental rules. Before you buy a unit for that use, confirm the local short-term rental regulations for the specific municipality and building, because those rules vary widely across Miami Beach and other submarkets. When you are modeling the acquisition, the tangible personal property tax belongs in the operating expenses alongside the real property tax. If you want a grounded read on what a specific property carries in recorded value before you underwrite it, start with a listing valuation.

A short worked example

Suppose you furnish a one-bedroom unit and the original cost of all reportable items totals about $18,000. You file the DR-405 on time. The $25,000 exemption covers the assessed value, and the tangible personal property tax on that unit is effectively zero, while your on-time filing preserves your eligibility for a waiver going forward. Now suppose you furnish a larger unit to a higher standard and reported original cost reaches $40,000. The first $25,000 in assessed value is exempt, and the remainder is taxed at the local millage. The difference between those two outcomes is entirely a function of what you own and whether you filed.

Practical filing checklist for Miami-Dade owners

Determine whether you owned taxable tangible personal property on January 1. Ownership on that date drives the filing obligation [2].
Build an asset list with each item's original cost including sales tax, freight, and installation [2].
File Form DR-405 with the Miami-Dade Property Appraiser by April 1, one return per location [1][2].
File the first-year return even if you expect to fall under $25,000, because the initial return is how you claim the exemption and become eligible for a future waiver [1].
Keep the confirmation. If you later qualify for a filing waiver, you want a clean record of the initial return.

This is where a real estate professional and a Florida tax advisor divide the work. I can help you underwrite the property and its use. A CPA or tax advisor should confirm your specific filing position and any depreciation questions. If you are weighing a furnished-rental purchase and want to talk through the numbers, a buyer consultation is the place to start.

Frequently asked questions

Do I have to pay tangible personal property tax on my own home's furniture?

No. Furnishings in a personal residence are not subject to the tangible personal property tax. The tax applies to physical assets used in a business or to produce income, which includes the furniture and appliances in a rental property [1][2].

When is the DR-405 due in Miami-Dade?

April 1 each year, based on ownership of taxable tangible personal property as of January 1. If April 1 falls on a weekend or holiday, the deadline moves to the next business day. Returns filed after the deadline are subject to penalties [1][2].

How does the $25,000 exemption work?

The exemption applies to the first $25,000 of assessed value of your tangible personal property. It came from Amendment 1, which Florida voters approved in 2008. You claim it by filing an initial DR-405 return on time. It is not applied automatically [1][2][3].

If my furnishings are worth less than $25,000, do I still file?

Yes, file the first return. The Florida Department of Revenue states that taxpayers generally must file an initial return to receive the exemption. After that initial filing, if your value stays at or below $25,000, the property appraiser may grant a waiver so you are not required to file every year [1][2].

How do I value the assets on the return?

Report each item at 100% of its original total cost, including sales tax, transportation, handling, and installation. The property appraiser applies depreciation to reach assessed value, so you are not estimating current resale value yourself [2].

If you are building or refining a Miami-Dade investment strategy and want more underwriting-focused reading, the blog covers related tax and market topics.

Gabriel

Sources

Gabriel A. Moyers, PA. eXp Realty. Florida License #3407280. Equal Housing Opportunity. This article is general information as of July 2026 and is not legal, tax, or financial advice. Verify current figures against authoritative sources before acting.