3 Financial Pros and 3 Cons of Moving to Florida for Retirement, According to Experts

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While Florida is a popular place to spend your golden years, it’s important to consider some advantages and disadvantages before making a move.

Here’s an exploration of some of the key pros and cons of retiring in Florida.

Pro: No State Income Tax

Florida is one of a handful of states without a state income tax.

“The lack of a state income tax and thus no taxes on Social Security benefits is a well-known draw,” said Yehuda Tropper, CEO of Beca Life Settlements in New Jersey.

With fewer income tax bills, you can hold on to more of your hard-earned dollars and live large in retirement.

Pro: Homestead Tax Exemption

For homeowners, the homestead tax exemption can offer reductions in property tax liabilities.

Andrew Constantinides, CFP at Neil Jesani Wealth Management, mentioned the homestead exemption, which can lower the assessed value of your home — and therefore your property taxes — and the Save Our Homes cap, which limits annual increases to the assessed value of your home.

Both, he said, “offer long-term housing cost stability. These mechanisms can meaningfully reduce a retiree’s tax liability and support predictable cash flow in retirement.”

Pro: No Estate Taxes

For retirees hoping to pass along assets to the next generation, the lack of an estate or inheritance tax is helpful.

Florida “doesn’t impose estate or inheritance taxes, making it a smart choice for legacy and estate planning and saving you even more of your hard-earned money,” said Linda Jensen, tax strategist at Heart Financial Group.

Con: Insurance Costs

Floridians face the highest average home insurance costs in the nation as of 2024, according to the National Association of Realtors. Many homeowners are paying more than $10,000 per year to insure their homes.

Beyond home insurance, Floridians face the second-highest average auto insurance premiums in the nation. Typical Floridian drivers spend around $3,220 per year on car insurance, as reported by MarketWatch.

Con: Substantial Sales Taxes

Although Florida doesn’t have an income tax, it does impose a sales tax. The general state sales tax is 6%, with a few exceptions, and local sales taxes add to that.

“This also applies to large purchases like cars, but even with smaller recurring costs like groceries, it can add up quickly for retirees on fixed incomes,” said David Beahm, president and CEO of Blanchard Gold in New Orleans.

Con: Hurricane Season

Hurricane season runs the six months between June 1 and Nov. 30. Unfortunately for Floridians, named storms tend to hit the state and cause significant damage every year.

Last year, Milton and Helene caused billions of dollars in damage in Tampa Bay alone, as reported by Tampa Bay Times.

Sources

• Yehuda Tropper, Beca Life Settlements
• Andrew Constantinides, Neil Jesani Wealth Management
• Linda Jensen, Heart Financial Group
• National Association of Realtors, “States Where Home Insurance Costs Are Surging Highest.”
• MarketWatch, “Car Insurance Rates by State.”
• David Beahm, Blanchard Gold
• Tampa Bay Times, “Last hurricane season cost Tampa Bay billions. Here’s the breakdown.“

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