Tool | November 2018

State-by-State Guide to Taxes on Retirees

Florida

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The Bottom Line
Map of Florida

Most Tax-Friendly

One of Kiplinger’ top ten most tax-friendly states for retirees, the Sunshine State is very popular with retirees, not just because of its abundant sunshine but also because of the absence of a state income tax. Permanent residents are entitled to a homestead exemption of up to $50,000, regardless of age, and seniors may qualify for an additional exemption.

State Sales Tax

6% state levy. Localities can add as much as 2%, and the average combined rate is 6.80%, according to the Tax Foundation.

Income Tax Range

There is no state income tax.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Retirement income is not taxed.

IRAs

Retirement income is not taxed.

401(k)s and Other Defined-Contribution Employer Retirement Plans

Retirement income is not taxed.

Private Pensions

Retirement income is not taxed.

Public Pensions

Retirement income is not taxed.

Property Taxes



The median property tax on Florida’s median home value of $166,800 is $1,702.

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 $29,454 in 2018. Any widow or widower who is a Florida resident may claim an additional $500 exemption.

Vehicle Taxes

6% state sales tax is due on the entire purchase price. Additionally, county sales tax (based on where the buyer lives) is due on the first $5,000 of the purchase price (or on each lease payment).

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

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