Tool | September 2014
State-by-State Guide to Taxes on Retirees
State Sales Tax
6% (food and prescription and nonprescription drugs are exempt). Additional county sales taxes can make the combined rate as high as 7.5%.
Income Tax Range
There is no state income tax.
Benefits are not taxed.
Exemptions for Other Retirement Income
Retirement income is not taxed.
Property is assessed at 100% of its market value, but the assessed value cannot increase more than 3% or inflation based on the consumer price index, whichever is less. Every person who owns and resides on property in Florida on January 1 and makes the property his or her permanent residence is eligible to receive a homestead exemption up to $50,000. The first $25,000 applies to all property taxes, including school district taxes. The rest of the exemption, up to $25,000, applies to the assessed value between $50,000 and $75,000, and only to nonschool taxes.
Any widow or widower who is a Florida resident may claim a $500 exemption. If you remarry, you are no longer eligible for the exemption.
Median property tax on the state's median home value of $182,400 is $1,773, according to the Tax Foundation.
Tax breaks for seniors: Florida residents ages 65 and older who meet certain income limits can receive an extra homestead exemption of up to $50,000 from some city and county governments and/or an exemption equal to the assessed value of the property, as long as the real estate has a fair market value of less than $250,000, the homeowner has maintained permanent residence at the location for at least 25 years, and household income does not exceed $27,994 during 2014.
There is no inheritance tax or estate tax.
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