Florida Taxes Explained: What You’ll Pay and What You Won’t

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If you’re thinking about moving to Florida, retiring there or already call the Sunshine State home, one question usually comes first: what are Florida taxes really like? Florida is often labeled a “low-tax” state — and for many people, that reputation is well earned. Still, Florida residents do pay certain taxes, and understanding how they work can help you plan more effectively.

This guide explains Florida’s tax system in plain language, including which taxes Florida does not have, which ones it relies on most and how Florida taxes affect workers, retirees and homeowners.

The Florida Department of Revenue administers most state taxes and publishes official guidance on rates and exemptions.

Quick Answer: Is Florida a Low-Tax State?

Yes — especially compared to many other states.

• No state income tax
• No tax on Social Security benefits
• No inheritance or estate tax
• Higher reliance on sales and property taxes

Florida’s tax structure shifts more of the burden toward consumption rather than income.

Florida Taxes At a Glance

Does Florida Have a State Income Tax?

No. Florida doesn’t impose a state income tax on individuals. That means Florida residents don’t pay state taxes on:

• Wages or salaries
• Self-employment income
• Pensions or annuities
• Social Security benefits

Florida’s lack of an income tax is written into the state constitution. This is one of the main reasons Florida is popular with retirees and remote workers.

How Florida Makes Up for No Income Tax

Because Florida doesn’t tax personal income, the state relies more heavily on:

• Sales and use taxes
• Property taxes (local governments)
• Tourism-related taxes

According to the U.S. Census Bureau, Florida collects a higher share of revenue from consumption taxes than many states with income taxes.

Florida Sales Tax Explained

Florida’s statewide sales tax rate is 6%. Counties may add a local surtax, typically ranging from .5% to 2.5%, depending on location.

Sales tax generally applies to:

• Retail purchases
• Some services
• Short-term accommodations

Groceries, prescription drugs and some medical supplies are exempt.

Property Taxes in Florida

Florida does have property taxes, but rates are set locally, not by the state.

Key points:

• Property taxes fund schools, counties and cities
• Rates vary widely by county
• Florida’s average effective property tax rate is close to the national average

The Florida Department of Revenue reports property tax data annually by county.

Florida’s Homestead Exemption

Florida offers a generous homestead exemption for primary residences. Eligible homeowners may receive:

• Up to $50,000 in property tax exemptions
• Caps on annual assessed value increases

This exemption can significantly reduce property tax bills for long-term residents.

Taxes on Retirement Income in Florida

Florida is considered one of the most tax-friendly states for retirees.

Florida doesn’t tax:

• Social Security benefits
• Pension income
• IRA or 401(k) withdrawals
• Annuity income

The Internal Revenue Service confirms that while federal taxes may apply, Florida doesn’t impose additional state-level taxes on retirement income.

Does Florida Have an Estate or Inheritance Tax?

No. Florida has neither.

• The state estate tax was repealed
• Florida does not impose an inheritance tax on beneficiaries

This makes Florida attractive for estate planning.

Florida Corporate Income Tax

While individuals don’t pay income tax, Florida does levy a corporate income tax on certain businesses.

Key Points:

• Applies primarily to C corporations
• Does not apply to sole proprietors or most pass-through entities

Are There Any Downsides to Florida’s Tax System?

Florida’s tax system isn’t perfect for everyone. Potential trade-offs include:

• Higher sales tax burden
• Fewer income-based tax credits
• Reliance on tourism-driven revenue

Lower-income households may feel sales taxes more strongly because they apply to everyday spending.

Who Benefits Most From Florida’s Tax Structure?

Florida’s tax system tends to favor:

• Retirees
• High-income earners
• Remote workers
• Homeowners who qualify for homestead exemptions

Those benefits often outweigh higher consumption taxes for these groups.

Final Take to GO

Florida is widely considered a tax-friendly state because it has no personal income tax, no tax on retirement income and no estate or inheritance tax. In exchange, the state relies more heavily on sales and property taxes.

Whether Florida’s tax structure works for you depends on how you earn, spend and plan for the future — but for many residents, the lack of an income tax is a major advantage.

Joel Anderson contributed to the reporting for this article.

Data is accurate as of Jan. 14, 2026, and is subject to change.

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