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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

Jacksonville

$2,170/month estimated cost of living

Miami

$3,940/month estimated cost of living

Tampa

$2,770/month estimated cost of living

Property Tax Details

Effective rate (WalletHub 2024)0.89%
Avg combined sales tax (state + local)7.02%

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.

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Retirement Methodology Calculators

How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.

Dave Ramsey

12% / 8%

Bill Bengen

4% rule

Bogleheads

7% / 4%

FIRE Calculator

See how much you need to retire — in Florida or anywhere else.

Safe Withdrawal Rate

Model your retirement paycheck with real historical data.

Sources — Florida tax data

Last verified 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.