Retire in Florida: 2026 Tax & Cost of Living Guide
The U.S. retiree-tax haven: no state income tax, no tax on Social Security or retirement income, no estate or inheritance tax, Save Our Homes 3% assessment cap, and easy domicile establishment. Homeowners insurance (not taxes) is the real retirement cost to model.
State income tax
None
Social Security
Not taxed
Estate tax
None
Property tax
0.89%
How Florida Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Not taxed
- Private pensions
- Not taxed
- 401(k) / IRA withdrawals
- Not taxed
Exemption / exclusion
Not applicable — Florida has no state income tax
Capital Gains in Florida
Florida does not tax capital gains, dividends, or interest. Federal capital gains tax still applies.
Top Cities for Retirees in Florida
Property Tax Details
Homestead exemption: up to $50,000 off assessed value ($25K + additional $25K above $75K home value). Save Our Homes assessment cap limits annual increases to 3% for primary residences. Seniors 65+ with low household income (~$35K threshold) qualify for an additional exemption of up to $50K in participating counties.
What Florida Retirees Need to Know
Save Our Homes 3% assessment cap
Florida caps annual property-tax assessment increases at 3% (or CPI, whichever is lower) for homesteaded primary residences. Long-term owners can have assessments substantially below market value. Portability: up to $500K of SOH benefit transfers to a new Florida home.
No estate, inheritance, or gift tax
Florida has none of these at the state level. Only federal estate tax applies ($13.61M exemption in 2024, scheduled to drop to ~$7M in 2026). This makes FL popular for retirees doing estate planning.
Hurricane insurance is the hidden cost
Not a tax, but Florida homeowners' insurance has risen dramatically — average policies now exceed $4K/year in coastal counties, with some retirees facing $10K+ premiums. Citizens Property Insurance (state-backed insurer of last resort) has absorbed policies as private insurers have exited. Model this into retirement-in-Florida budgets.
Domicile is easy to establish
Compared to California or New York, Florida makes it straightforward to establish residency for tax purposes. Requirements: Florida DL, voter registration, vehicle registration, and Declaration of Domicile filed with the county clerk. Retirees fleeing high-tax states typically close the domicile loop in 30-60 days.
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
Retirement Methodology Calculators
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FIRE Calculator
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Sources — Florida tax data
Last verified 2026-04-16
- Florida Department of Revenue — Homestead Exemptionaccessed 2026-04-16
- Tax Foundation — State Individual Income Tax Rates 2024accessed 2026-04-16
- WalletHub — Property Taxes by State 2024accessed 2026-04-16
- Kiplinger — Taxes in Retirement: Floridaaccessed 2026-04-16
Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.