Florida Income Tax Calculator 2025
☀️ Florida State Tax Quick Facts (2025)
- State Income Tax: NONE - $0!
- Tax on Retirement Income: $0 (pensions, Social Security, IRAs)
- Tax Rates: 0% on all personal income
- State Tax Return: Not required
- Best For: Retirees, remote workers, high earners
Florida Has NO State Income Tax
Florida doesn't tax personal income. Period. Whether you earn $30,000 or $3 million, you pay $0 in state income tax.
This also means Florida doesn't tax:
- Social Security benefits (huge for retirees)
- Pensions and annuities
- 401(k) and IRA withdrawals
- Investment income (capital gains, dividends, interest)
- Rental property income
- Self-employment income
Florida is consistently ranked as one of the most tax-friendly states, especially for retirees and remote workers.
How Much Will You Save?
💰 Real Savings: Working-Age Adults
Scenario 1: $75,000 Salary (Middle-Class)
| From State | Old State Tax | Florida Tax | Annual Savings |
|---|---|---|---|
| California | ~$4,200 | $0 | Save $4,200 |
| New York State | ~$4,000 | $0 | Save $4,000 |
| New Jersey | ~$3,400 | $0 | Save $3,400 |
| Massachusetts | ~$3,750 | $0 | Save $3,750 |
| Illinois (4.95%) | ~$3,675 | $0 | Save $3,675 |
🏖️ Real Savings: Retirees
Scenario 2: $60,000 Retirement Income
$30,000 Social Security + $30,000 pension/IRA withdrawals
| State | Tax on Retirement Income | Florida Tax | Annual Savings |
|---|---|---|---|
| Connecticut | ~$2,800 | $0 | Save $2,800 |
| Kansas | ~$2,400 | $0 | Save $2,400 |
| Missouri | ~$2,200 | $0 | Save $2,200 |
| Minnesota | ~$3,500 | $0 | Save $3,500 |
Over 20 years of retirement: Save $40,000-$70,000+!
What About Other Taxes?
Florida doesn't tax income, but it collects revenue through other means:
1. Property Taxes (Reasonable)
Florida property taxes are moderate - lower than Texas and New Jersey, higher than some southern states.
- Average rate: 0.8% to 1.0% of assessed home value
- Homestead exemption: First $50,000 of home value is exempt if it's your primary residence (saves ~$500-$700/year)
- Example: $300,000 home = $2,400-$3,000/year after homestead exemption
Property Tax by County (2025 estimates)
- Tampa / Hillsborough County: ~0.95% ($2,375 on $250k home after exemption)
- Jacksonville / Duval County: ~1.1% ($2,500 on $250k home)
- Orlando / Orange County: ~1.0% ($2,250 on $250k home)
- Miami / Miami-Dade County: ~0.95% ($2,200 on $250k home)
- Naples / Collier County: ~0.75% (low, but expensive homes)
Tip: Check the specific county you're considering. Rates vary significantly.
2. Sales Tax
Florida sales tax: 6% (state) + 0-2% (county) = 6% to 8% total.
- Groceries: Exempt (big savings for families)
- Prescription drugs: Exempt
- Clothing: Taxable (unlike some states)
- Restaurant meals: Taxable
Impact: Middle-of-the-pack. Not as high as Washington (10%+), not as low as Oregon (no sales tax).
3. No Estate or Inheritance Tax
Florida has no estate tax and no inheritance tax. This is huge for retirees planning their estates. You still pay federal estate tax if your estate exceeds $13.61 million (2025), but that only affects very high net worth individuals.
4. Insurance Costs (The Hidden Hit)
Homeowners insurance in Florida is expensive due to hurricane risk:
- Coastal areas: $3,000-$6,000+/year
- Inland areas: $1,800-$2,500/year
- National average: $1,500/year
Flood insurance is often required in coastal zones (add $500-$2,000/year).
Factor this into your budget. If you're moving to Tampa or Jacksonville (less hurricane-prone), insurance is cheaper than Miami or Naples.
Best Florida Cities for Middle-Class Earners
Florida has a huge cost-of-living range. Here's where you get the best value:
-
Jacksonville
- Most affordable major city in FL
- 1BR rent: $1,200-$1,400
- Growing job market (finance, logistics, healthcare)
- Beach access + lower hurricane risk than South Florida
-
Tampa / St. Petersburg
- 1BR rent: $1,400-$1,800
- Great food, culture, beaches
- Strong job market (tech, healthcare, tourism)
- More affordable than Miami
-
Gainesville
- College town, affordable ($1,000-$1,300 for 1BR)
- Lower insurance costs (inland)
- Good for remote workers who want low cost of living
-
Orlando (suburbs)
- 1BR rent: $1,400-$1,700
- Huge job market (tourism, tech, healthcare)
- Central location, easy to reach both coasts
- Avoid tourist areas; go for Winter Park, Altamonte Springs
-
Port St. Lucie / Fort Pierce
- Cheaper coastal living ($1,200-$1,500)
- Quieter, slower pace
- Popular with retirees
Skip: Miami ($2,200+ for 1BR), Naples (expensive and touristy), Key West (fun but wildly overpriced).
Florida for Retirees: The Full Picture
✅ Why Retirees Love Florida
- Zero tax on retirement income (Social Security, pensions, 401(k), IRAs)
- Warm weather year-round (no heating bills, outdoor activities)
- Over 4 million retirees = large communities, social opportunities
- Excellent healthcare (Mayo Clinic, Moffitt Cancer Center, many top hospitals)
- No estate tax (easier estate planning)
- Lower property taxes than Northeast states
⚠️ Potential Downsides for Retirees
- Hurricane risk (evacuation stress, insurance costs)
- Hot, humid summers (June-Sept: 90°F+ with high humidity)
- Flat terrain (if you love mountains, Florida has none)
- Tourist crowds (especially in South Florida and Orlando)
- Far from family (if all your kids/grandkids are up North)
Bottom line for retirees: If you can handle the heat and hurricanes, Florida offers huge financial and lifestyle benefits.
Cost of Living Comparison
$75,000 Earner: New York vs Florida (Real Math)
| Category | New York City | Miami | Tampa | Jacksonville |
|---|---|---|---|---|
| State Income Tax | -$3,961 | $0 | $0 | $0 |
| NYC Income Tax | -$2,300 | $0 | $0 | $0 |
| Rent (1BR) | -$3,200/mo | -$2,200/mo | -$1,600/mo | -$1,300/mo |
| Annual Rent | -$38,400 | -$26,400 | -$19,200 | -$15,600 |
| Combined Savings | — | $18,261/yr | $25,461/yr | $29,061/yr |
Key Insight: Even Miami (FL's most expensive city) saves you $18k+/year vs NYC. Tampa and Jacksonville are even better deals.
Tax Filing Simplified
Since Florida has no income tax, you only file a federal return.
Best Free Tax Software for Florida Residents
-
Cash App Taxes - FREE
Completely free for federal filing. No state return needed in Florida = done in 20 minutes.
-
FreeTaxUSA - FREE federal
Good for slightly complex situations (rental income, side business, investments).
-
IRS Free File - FREE (if income under $79k)
Direct from the IRS. Straightforward and reliable.
You don't need to pay for TurboTax or H&R Block when you only have a federal return.
Finding Affordable Tax Help in Florida
- VITA (Volunteer Income Tax Assistance): FREE for income under $64,000. Available at libraries across Florida.
- AARP Tax-Aide: FREE for seniors (any income level). Available February-April at libraries and community centers.
- Local Enrolled Agent: $100-$300 for simple federal return. Search "enrolled agent" + your city.
Establishing Florida Residency
When you move to Florida, take these steps to establish legal residency and avoid issues with your old state:
- Get a Florida driver's license within 30 days of moving
- Register your vehicle in Florida
- Register to vote in Florida
- File a Declaration of Domicile with your county clerk ($10-$25) - this creates a legal record
- Update your address with banks, employer, IRS, Social Security
- Open a Florida bank account
- File a part-year return with your old state for the portion of the year you lived there
Important: States like California and New York aggressively audit people who claim to have moved. Keep documentation: lease agreement, utility bills, moving receipts, FL driver's license date.
Should You Move to Florida?
✅ Florida is a Great Move If:
- You're retiring and want to maximize your savings (no tax on pensions/Social Security)
- You make $60k+ and can work remotely
- You love warm weather and don't mind humidity
- You enjoy beach access and water activities
- You're moving from a high-tax state (NY, CA, NJ, MA, IL, CT)
- You want to simplify taxes (only federal return)
❌ Maybe Think Twice If:
- You make under $50k (savings would be modest, $1,500-$2,500/year)
- You hate heat and humidity (summers are brutal: 90°F+ with 80%+ humidity)
- You're worried about hurricanes (risk is real in coastal areas)
- You need four seasons (Florida is warm year-round, no fall colors or snow)
- You'd lose a high-paying job that requires in-office work
- All your family and friends are up North (loneliness is real)
Common Questions
Will Florida ever add an income tax?
Very unlikely. Florida's economy and population growth are fueled by no income tax - it's a huge selling point. The state constitution would need to be amended, and voters would almost certainly reject it. Not happening anytime soon.
What if I work remotely for a company in another state?
As a Florida resident, you pay zero state income tax no matter where your employer is located. However, a few states (NY, CA) might try to tax you if you physically work from their state occasionally - consult a tax pro if you travel for work.
Does Florida tax capital gains?
No. Florida does not tax capital gains, dividends, or any investment income. This is huge for retirees living off investments and high earners with stock portfolios.
Is car insurance expensive in Florida?
Yes. Florida has some of the highest car insurance rates in the U.S. (~$2,000-$3,000/year) due to high accident rates, fraud, and uninsured drivers. Factor this into your budget.
Can I keep my job if I move to Florida?
If you work remotely, yes. If your job requires in-office presence, you'll need to find a new job or negotiate remote work. Many companies now allow full remote work, making Florida moves easier.
The Bottom Line
Florida offers real, substantial financial benefits for retirees, remote workers, and middle-to-high earners. The combination of no income tax, moderate property taxes, warm weather, and simplified tax filing makes it one of the best states financially.
Best for: Retirees, remote workers, beach lovers, people fleeing high-tax states.
Consider carefully: Heat, humidity, hurricanes, and higher insurance costs. But for most people, the math works out in Florida's favor.
Compare FL with other states: NY vs FL | CA vs FL
State rankings: Lowest Tax States 2025 | Best States for Retirees | States with No Income Tax | Highest Tax States 2025