Part-Time Retirement in Florida Could Negate Tax Breaks

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published 6 November 2025

Florida has long been an enticing draw for retirees, offering beaches, a subtropical climate and relief from shoveling snow in the winter.

But for the financially minded, there are advantages that go far beyond beautiful sunsets and dolphins frolicking in the water. One of the most significant: Florida is one of only nine states that don't have a state income tax.

For retirees, this means no state tax on your Social Security benefit, pension, withdrawals you make from retirement accounts or any other income you have.

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The advantages don't end there. Florida also doesn't have an estate or inheritance tax. Meanwhile, a homestead exemption reduces the amount Floridians pay on property taxes if the home they are living in is their primary residence. The homestead exemption cuts the property's taxable value by as much as $50,000.

Somewhat related, Florida also has Save Our Homes, which limits how much the property appraiser can increase the property's assessed value each year.

Of course, to take advantage of these financial incentives, retirees must establish residency in Florida, not just be a long-term guest.

A snowbird's financial journey

Often, a retiree's first foray into Florida is just to get their feet wet. They still have ties to New York, Michigan, Ohio or wherever they are from originally. That's where their children and grandchildren are, where they still have friends or where they still have a home.

They spend winters in Miami, Tampa, Naples, Fort Myers or other Florida communities, but then return to their northern abodes around the time spring arrives.

In many cases, these "snowbirds" want to get a feel for the place before they take the plunge and become full-fledged and legal Florida residents. In a sense, that's a prudent idea.

Let's look at a hypothetical example involving a 67-year-old New York resident named Amanda. For the last two winters, Amanda has lived the life of a Florida snowbird, traveling south as cold weather sets in up north, then returning to New York as temperatures in the Northeast return to an appealing level.

But Amanda's unwillingness to let go of her New York residency has consequences.

New York has a state income tax with nine brackets, ranging from 4% to 10.9%. Counting Social Security, a pension and withdrawals from her IRA, Amanda has taxable income of $100,000, which places her in New York's 6% bracket.

Based on how the state's progressive tax brackets work, Amanda has a $5,432 tax bill that she would not have had if she had become a Florida resident.

When a friend points this out, Amanda does some math and realizes that in the previous year, she spent more days in Florida than in New York. Doesn't that mean she is now a Florida resident and no longer under the purview of New York's state income tax?

Nope. Residency is determined by more than just how many days you spend in a given state.

Those who work at the New York Department of Taxation and Finance will inform her that she is still officially a New York resident — and she still owes taxes.

The path to residency

As a financial professional working in Florida, situations like Amanda's are something I see routinely. Fortunately, there are steps to take to avoid being blindsided by unexpected and unwanted tax bills.

Of course, you can't simply proclaim yourself a Florida resident for tax purposes and still live most of the time back in your old homestead.

To become a Florida resident, you will need to spend most of the year in Florida (at least 183 days). But as Amanda, our hypothetical example, showed, even that won't be enough.

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There are other actions you should take that will let the state know you now consider yourself a permanent Florida resident, such as getting a Florida driver's license, registering your car in Florida and filing a declaration of domicile in the Florida county where you have taken up residence.

And that's when the tax advantages really start.

Time your taxable events carefully, if you can

So, if you are a retiree with one foot in Florida and one foot elsewhere, you might want to consider holding off on financial moves that could trigger taxes until you have fully and legally become a Sunshine State resident, if that is your goal.

For example, if you want to convert a traditional IRA to a Roth IRA, and you are still officially a resident of your previous state, you will pay both federal income tax and state income tax when you move the money over. But postpone the conversion until you are a Florida resident and you will pay only the federal income tax.

If you are unsure about all the ramifications, consult a financial professional who can help you better understand the advantages or disadvantages of moving from one state to another in retirement and the steps you can take to save money.

After all, retirement in Florida or elsewhere should be as relaxing and as fun as possible — and part of achieving that is keeping more of your money in your pocket rather than in the government's.

Ronnie Blair contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

Securities offered only by duly registered individuals of Madison Avenue Securities, LLC (MAS), member FINRA/SIPC. Investment advisory services offered only by duly registered individuals of Global Wealth Management Advisory (GWM), a registered investment adviser. GWM and MAS are not affiliated entities. GWM does not offer legal or tax advice. Consult your legal or tax advisor regarding your situation. A Roth IRA conversion is a taxable event. This article is intended for informational purposes only.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Grant Conness is Managing Director and Co-Founder of Global Wealth Management, recognized as the No. 1 financial advisory firm in Southeast Florida by USA TODAY's 2025 Best Financial Advisory Firms list.* With more than 20 years of experience, Grant focuses on helping clients navigate the critical five years before and after retirement through the firm's proprietary Retirement Roadmap Review process.