Florida is the most popular relocation destination in the U.S., driven by no state income tax, warm weather, and a cost of living that’s still below average in many parts of the state. The no-income-tax advantage is significant — a household earning $150,000 saves roughly $7,000–$10,000 annually compared to California or New York. But Florida’s financial picture has gotten more complicated since 2020: home prices have surged, property insurance costs have tripled in some areas (Florida has the highest homeowner’s insurance in the nation), and flood risk adds another layer of expense. Miami, Tampa, Orlando, and Jacksonville are the primary metros, each with distinct job markets and cost profiles. Florida works best financially for retirees (no tax on Social Security or retirement income) and high-income earners relocating from tax-heavy states.
Florida at a Glance
Metric
Value
National Rank
Population (2024)
23.4 million
3rd
Median household income
$67,917
32nd
Median home price
$400,000
Above average
Cost of living index
103
Slightly above average
State income tax
0%
Best (tied)
Sales tax (state + local avg)
7.02%
Average
Property tax (effective rate)
0.86%
Average
Homeowner’s insurance (avg)
$4,400/year
2nd highest
Income in Florida
Median Household Income by Metro
Metro Area
Median Household Income
Cost of Living Index
Affordability
Naples-Marco Island
$82,000
130
Fair
Sarasota-Bradenton
$68,400
112
Fair
Jacksonville
$72,600
98
Good
Tampa-St. Pete
$66,200
103
Fair
Orlando
$65,800
102
Fair
Fort Lauderdale
$64,200
118
Poor
Miami
$52,400
125
Poor
West Palm Beach
$68,800
120
Fair
Gainesville
$51,200
96
Good
Tallahassee
$55,400
94
Good
Panama City
$58,600
92
Good
Ocala
$52,800
90
Good
Cape Coral-Fort Myers
$65,200
104
Fair
Pensacola
$62,400
92
Good
Housing in Florida
Home Prices by City
City/Area
Median Home Price
Median Rent (2BR)
Price-to-Income
Miami Beach
$580,000
$3,200
11.1
Fort Lauderdale
$470,000
$2,600
7.3
Naples
$600,000
$2,400
7.3
West Palm Beach
$440,000
$2,200
6.4
Tampa
$380,000
$1,750
5.7
Orlando
$385,000
$1,700
5.9
St. Petersburg
$395,000
$1,800
6.0
Jacksonville
$340,000
$1,450
4.7
Sarasota
$430,000
$2,000
6.3
Cape Coral
$375,000
$1,700
5.8
Gainesville
$290,000
$1,350
5.7
Tallahassee
$275,000
$1,250
5.0
Ocala
$275,000
$1,300
5.2
Pensacola
$285,000
$1,300
4.6
State Average
$400,000
$1,700
5.9
The Hidden Cost: Insurance
Type
Florida Average
National Average
Difference
Homeowner’s insurance
$4,400/year
$1,900/year
+$2,500
Flood insurance
$800-$3,000/year
$700/year (where required)
+$100-$2,300
Auto insurance
$2,800/year
$1,800/year
+$1,000
Total insurance premium
$8,000-$10,200
$4,400
+$3,600-$5,800
Florida’s insurance costs effectively wipe out much of the income tax savings for many residents.
Taxes in Florida
No Income Tax — But…
Tax Type
Florida Rate
National Context
State income tax
0%
Saves $2,000-$15,000+ per year
Sales tax (state + local)
7.02% avg
Average
Property tax (effective)
0.86%
Average
Gas tax
$0.365/gallon
Above average
Corporate income tax
5.5%
Average
Estate tax
None
Only federal applies
Tax Savings Example: Florida vs Other States
Gross Income
FL Income Tax Savings vs CA
vs NY
vs NJ
vs IL
$75,000
$3,195
$3,892
$2,925
$3,712
$100,000
$5,570
$5,547
$4,175
$4,950
$150,000
$11,160
$8,997
$7,050
$7,425
$200,000
$17,750
$12,747
$10,150
$9,900
But Insurance Costs Eat Into Savings
Income
FL Tax Savings (vs avg state)
Extra Insurance Costs
Net Benefit
$75,000
$3,500
$4,500
-$1,000
$100,000
$5,000
$4,500
+$500
$150,000
$8,000
$4,500
+$3,500
$200,000
$12,000
$4,500
+$7,500
$300,000
$18,000
$4,500
+$13,500
No income tax disproportionately benefits high earners. For moderate incomes, Florida’s insurance costs can negate the tax advantage.
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