Florida's tax climate is one of the top reasons people move here. But "no income tax" is only part of the story. Here is what actually changes for your wallet when you relocate.
No state personal income tax
Florida levies no state income tax on wages, retirement income, Social Security, or investment income. For people moving from high-tax states, this alone can be worth thousands a year — and it is a big driver of Florida relocations.
Property taxes & homestead
You will pay property taxes (set locally), but Florida's homestead exemption and Save Our Homes cap can substantially reduce them on your primary residence. File with the county property appraiser once Florida is your permanent home.
Sales tax & no estate tax
Florida has a state sales tax (counties add a little on top), and notably no state estate or inheritance tax — another reason it is attractive for retirees and for passing on wealth.
Make your residency official
To get the tax benefits — and protect yourself if your old state comes asking — you need to genuinely establish Florida residency. That is more than buying a home; it is a checklist worth doing right.
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Keep reading: How Much Does It Cost to Sell a House in Florida? · Florida Homestead Exemption: How to Lower Your Property Taxes · Buying a Beachside Home in Volusia County: What to Know · All insights →
About the author — Arthur Simpson
Arthur is a Florida attorney, licensed real estate broker, and Certified International Property Specialist (CIPS), and a member of the Real Property and International Law Sections of The Florida Bar. He founded Simpson & Simpson Realty to give Volusia & Flagler families — and buyers from around the world — a brokerage with a real estate attorney's eye on every deal. Meet Arthur & the family →