Florida Tax Guide
Explore Florida's state tax rates for income, sales, property, retirement, and more. Learn how Florida compares nationwide.
Kelley R. Taylor
Navigating the complexities of state taxes can be daunting, but understanding Florida's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Sunshine State's tax system, from income and sales taxes to property taxes and retirement benefits.
Florida tax: Overview
Florida remains a premier destination for retirees, anchored by its status as one of just nine states with no personal income tax. However, the biggest news for 2026 isn't what the state takes from your paycheck, but how it is dramatically shielding your home from rising costs.
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Following the overwhelming success of Amendment 5 at the polls, the way Florida calculates your property tax breaks has officially shifted. Historically, the $50,000 homestead exemption was a static number, but it is now indexed to the annual inflation rate.
For more information, see Florida Changes Homestead Exemption Property Tax Break.
Update: The push for no Florida property tax
The legislative session in Tallahassee has reached a fever pitch this March with what House Speaker Daniel Perez has called "the most aggressive property tax legislation in U.S. history."
The House recently fast-tracked HJR 203, a plan to essentially eliminate property taxes for primary residents. If the Senate aligns and voters approve it this November, the measure would begin eliminating all city and county property taxes — leaving only school district levies — starting in 2027. This could effectively cut the average retiree's property tax bill in half. Stay tuned.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Florida income tax
Florida is one of the nine states with no income tax. You won't pay state tax on wages, retirement income or investment income.
Florida retirement taxes
There is no personal income tax in Florida. The state won’t tax your pension or any other type of retirement income. There are no estate or inheritance taxes either.
- Income Tax on Taxable Income: N/A
- Social Security: Not taxable
- Pensions: Not taxable
- 401(k) and IRA Distributions: Not taxable
Florida sales tax
Florida has a 6% statewide sales tax. Localities can add as much as 2%, and the average combined rate is 6.98%, according to the Tax Foundation.
- Groceries: Exempt
- Prescription drugs: Exempt
- Diapers: Exempt
- Some feminine products: Exempt
How much is Florida property tax?
In Florida, the average effective property tax rate is 0.74%, according to the Tax Foundation.
Florida Property Tax Breaks for Retirees
Additional Homestead Exemption: Florida residents ages 65 and older who meet certain criteria can receive an extra homestead exemption from some city and county governments.
Homeowners must apply to receive an additional homestead exemption.
(Note: Income limitations for the additional homestead exemption are adjusted annually.)
Florida gas tax
Gasoline | $0.04 per gallon |
Diesel | $0.04 per gallon |
Florida taxes on alcohol and tobacco
Product | Tax amount |
|---|---|
Cigarettes | $1.34 per pack |
Other tobacco products | 85% of wholesale price |
Medical marijuana | 0% |
Source: Sales Tax Handbook
Product | Tax amount |
|---|---|
Wine | $2.25 per gallon |
Sparkling Wine | $3.50 per gallon |
Beer | $0.48 per gallon |
Liquor | $6.50 per gallon |
Source: Sales Tax Handbook
Florida estate and inheritance taxes
Florida is one of the states with no estate or inheritance taxes.
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