Florida has no state income tax — one of only 9 states where you keep 100% of your income from state taxes.
Florida Tax Overview
| Tax Type | Rate |
|---|---|
| State income tax | None |
| Capital gains tax | None |
| Estate tax | None |
| Property tax | 0.80% average |
| Sales tax | 6% state (+ up to 2.5% local) |
States With No Income Tax
| State | Other Tax Considerations |
|---|---|
| Florida | Moderate property/sales tax |
| Texas | High property tax (1.60%) |
| Nevada | Higher sales tax |
| Washington | No income, but high sales tax |
| Wyoming | Low overall taxes |
| Alaska | No income or sales tax |
| South Dakota | Low overall taxes |
| New Hampshire | Dividends/interest only |
| Tennessee | No income tax |
Florida offers a balanced no-income-tax package with moderate other taxes.
How Much You Save With No Income Tax
| Income | CA Tax Saved | NY Tax Saved | IL Tax Saved |
|---|---|---|---|
| $75,000 | $3,586 | $4,125 | $3,713 |
| $100,000 | $5,911 | $5,750 | $4,950 |
| $150,000 | $10,561 | $9,344 | $7,425 |
| $200,000 | $15,211 | $13,188 | $9,900 |
| $300,000 | $24,511 | $21,750 | $14,850 |
| $500,000 | $49,511 | $42,438 | $24,750 |
| $1,000,000 | $110,561 | $99,688 | $49,500 |
High earners save significant money moving to Florida.
Florida Property Tax
| Metric | Value |
|---|---|
| Average effective rate | 0.80% |
| Median home value | $330,000 |
| Median annual tax | $2,640 |
| National average | 0.99% |
Property Tax by County
| County | Average Rate | On $400K Home |
|---|---|---|
| Miami-Dade | 0.97% | $3,880 |
| Broward (Ft. Lauderdale) | 1.08% | $4,320 |
| Palm Beach | 1.02% | $4,080 |
| Hillsborough (Tampa) | 0.98% | $3,920 |
| Orange (Orlando) | 0.92% | $3,680 |
| Duval (Jacksonville) | 0.89% | $3,560 |
| Pinellas (St. Pete) | 0.87% | $3,480 |
| Lee (Fort Myers) | 0.85% | $3,400 |
| Monroe (Keys) | 0.63% | $2,520 |
Florida Homestead Exemption
| Exemption | Amount |
|---|---|
| Standard homestead | Up to $50,000 |
| First $25,000 | All property taxes |
| $25,001-$50,000 | Non-school taxes only |
| Additional senior exemption | $50,000 (some counties) |
| Disabled veteran | Full exemption |
Save Our Homes Cap: After homestead, assessed value increases limited to 3% per year (or CPI, whichever is less).
How to File for Homestead
- Be a Florida resident as of January 1
- Own property as primary residence
- File by March 1 with county property appraiser
- Provide ID and proof of residency
Florida Sales Tax
| Item | Rate |
|---|---|
| State sales tax | 6.00% |
| Local additions | 0-2.5% |
| Total range | 6.0-8.5% |
Sales Tax by Area
| Location | Total Rate |
|---|---|
| Miami-Dade | 7.0% |
| Orlando (Orange County) | 6.5% |
| Tampa (Hillsborough) | 8.5% |
| Jacksonville (Duval) | 7.5% |
| Fort Lauderdale (Broward) | 7.0% |
Sales Tax Exemptions
| Item | Exempt? |
|---|---|
| Groceries (most food) | Yes |
| Prescription drugs | Yes |
| Clothing | No |
| Electronics | No |
| Cars | No (6% “doc fee”) |
Florida Documentary Stamp Tax
When buying real estate:
| Tax | Rate |
|---|---|
| Documentary stamp (deed) | $0.70 per $100 |
| Documentary stamp (mortgage) | $0.35 per $100 |
| Intangible tax (mortgage) | $0.20 per $100 |
Example: $400,000 home with $320,000 mortgage:
- Deed stamps: $2,800
- Mortgage stamps: $1,120
- Intangible tax: $640
- Total: $4,560
Florida Retirement Taxes
| Income Source | Florida Tax |
|---|---|
| Social Security | Not taxed |
| 401(k)/IRA withdrawals | Not taxed |
| Pension income | Not taxed |
| Investment income | Not taxed |
| Capital gains | Not taxed |
Florida is one of the most tax-friendly states for retirees.
Florida Estate Tax
Florida has no state estate tax. You’ll still pay federal estate tax if your estate exceeds $13.61 million (2024).
Florida Tangible Personal Property Tax
Businesses (and some personal property) are subject to tangible personal property tax:
| Item | Taxable? |
|---|---|
| Business equipment | Yes |
| Inventory | No (exempt) |
| Boats | Yes |
| Aircraft | Yes |
| Household items | Generally no |
First $25,000 of tangible personal property is exempt.
Florida Corporate Taxes
| Tax | Rate |
|---|---|
| Corporate income tax | 5.5% |
| S-Corps | Pass-through (no state tax) |
| LLCs | Pass-through (no state tax) |
| Franchise tax | None |
Florida has a corporate income tax, but pass-through entities avoid it.
Who Benefits Most From Florida’s Tax Structure?
Big Winners:
- High-income earners (save $50,000-$100,000+ vs. CA/NY)
- Retirees (no tax on retirement income)
- Business owners with pass-through income
- Investors (no capital gains tax)
- Remote workers with FL residency
Neutral or Worse:
- Low-income residents (pay sales tax, no earned income credit)
- Homeowners in high-tax counties
- Those who might use state services (less funding)
Establishing Florida Residency
To claim Florida tax benefits:
| Step | Details |
|---|---|
| Primary residence | Own or rent in FL |
| Driver’s license | Florida-issued |
| Vehicle registration | Florida plates |
| Voter registration | Register in FL |
| Days present | 183+ days in FL |
| Bank accounts | Florida banks |
Warning: Other states (CA, NY) aggressively audit residency claims.
Cost of Living Considerations
| Factor | Florida vs. National |
|---|---|
| Housing costs | +15-30% (varies by area) |
| Insurance (home) | +50-100% (hurricane risk) |
| Insurance (car) | +20-40% |
| Utilities | Higher (AC costs) |
| Healthcare | Average |
No income tax doesn’t mean low cost — housing and insurance can offset savings.
Florida Tax Calendar
| Date | Action |
|---|---|
| January 1 | Property values assessed |
| March 1 | Homestead exemption deadline |
| April 15 | Federal tax deadline |
| November 1 | Property tax bills mailed |
| March 31 | Property tax due |
Bottom Line
Florida’s no state income tax makes it attractive for high earners, retirees, and investors. Property taxes (0.80% average) and sales taxes (6-8.5%) are reasonable. The savings can be significant — $50,000-$100,000+ annually for millionaires compared to high-tax states. However, high housing costs, expensive insurance, and other factors should be weighed against tax savings when considering a move.