Florida Taxes Guide: Everything New Residents Need to Know

One of the biggest reasons people move to Florida is simple: taxes.

Florida is consistently ranked as one of the most tax-friendly states in the country because it does not impose a state personal income tax. But that doesn't mean Floridians don't pay taxes. Understanding how Florida's tax system works can help you budget more accurately, avoid surprises, and take advantage of valuable tax savings available to homeowners.

No State Income Tax

Florida does not have a state income tax.

That means Florida does not tax:

  • Wages and salaries

  • Retirement income

  • Social Security benefits

  • Pension income

  • IRA withdrawals

  • 401(k) distributions

You'll still owe federal income taxes when applicable, but you won't file a separate Florida state income tax return.

Florida Sales Tax

Instead of relying on income taxes, Florida generates much of its revenue through sales tax.

The statewide sales tax rate is 6%, although many counties add a local discretionary sales surtax, meaning the total rate varies depending on where you live.

Items commonly subject to sales tax include:

  • Clothing

  • Electronics

  • Furniture

  • Vehicles

  • Restaurant meals

  • Many retail purchases

Certain groceries, prescription medications, and some medical products are generally exempt.

Property Taxes

Florida homeowners pay annual property taxes based on the assessed value of their home.

Property taxes help fund:

  • Public schools

  • Fire departments

  • Police services

  • Roads and infrastructure

  • Parks

  • Local government services

Unlike income tax, property taxes are administered locally, so rates vary from county to county.

The Florida Homestead Exemption

If Florida is your primary residence, you may qualify for the Florida Homestead Exemption.

Benefits can include:

  • A reduction in your home's taxable value

  • Protection from certain creditors

  • Annual limits on increases in assessed value through the Save Our Homes program

  • Potential property tax savings each year

Most homeowners must establish Florida residency and apply with their county property appraiser.

Save Our Homes Protection

Florida's Save Our Homes assessment limitation helps protect homeowners from dramatic increases in property taxes.

Once you qualify for Homestead Exemption, annual increases in your home's assessed value are generally limited, even if the market value rises significantly. This can result in substantial long-term tax savings for homeowners who remain in their homes for many years.

Vehicle Taxes and Registration Fees

Florida does not charge annual personal property taxes on privately owned vehicles like some states.

However, drivers should expect to pay:

  • Vehicle registration fees

  • License plate fees

  • Title fees

  • Sales tax when purchasing most vehicles

The exact amount depends on the type of vehicle and whether it is new to Florida.

Retirement Taxes

Florida is especially attractive to retirees because the state does not tax:

  • Social Security benefits

  • Pension income

  • Traditional IRA withdrawals

  • Roth IRA withdrawals (subject to federal rules)

  • 401(k) distributions

For many retirees, this can result in meaningful annual tax savings compared to states with an income tax.

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Business Taxes

If you're starting a business in Florida, you may encounter taxes such as:

  • Corporate income tax (for certain business structures)

  • Sales and use tax

  • Reemployment tax (unemployment tax)

  • Local business licensing fees

The taxes you owe depend on your business entity and the products or services you provide.

Estate and Inheritance Taxes

Florida has:

  • No state estate tax

  • No state inheritance tax

Federal estate tax rules may still apply to very large estates, but most Florida families will not owe a state estate or inheritance tax.

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Official Florida Resources

Tax Tips for New Florida Residents

If you've recently moved to Florida:

  • Establish Florida residency promptly.

  • Apply for Homestead Exemption if eligible.

  • Update your driver's license and vehicle registration.

  • Notify financial institutions of your new address.

  • Review your estate plan if you've moved from another state.

  • Keep records that demonstrate your Florida residency if changing your tax domicile.

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Moving to Florida often means changes beyond taxes. Purchasing a home, registering a vehicle, or establishing residency are excellent times to review your insurance coverage.

Whether you need homeowners, flood, auto, umbrella, or condo insurance, the experienced advisors at Ted Todd Insurance can help ensure your coverage fits your new life in the Sunshine State.

Don't Forget Your Insurance.

Schedule an Insurance Review with Ted Todd Insurance today.

Your Questions, Answered

  • No. Florida does not have a state personal income tax.

  • Not entirely. While there is no state income tax, Florida collects revenue through sales taxes, property taxes, fuel taxes, and other state and local taxes.

  • No. Florida does not tax Social Security benefits, pensions, or retirement account distributions at the state level.

  • The statewide rate is 6%, although many counties add a local surtax, making the total rate higher depending on your location.

  • If Florida is your permanent residence and you meet the eligibility requirements, applying for Homestead Exemption may reduce your property taxes and provide additional legal protections.