New Jersey vs Florida Tax Comparison 2026: The Retirement Exodus
🎯 Quick Answer: How Much Will You Save?
Retiree with $75k income: Save $4,000-$7,000/year (taxes + lower costs)
Property tax on $400k home: NJ pays $9,200/year vs FL $3,600/year = $5,600 saved
Working professional ($120k): Save ~$6,000/year income tax alone
Trade-off: Leave family/friends, hurricanes, intense heat/humidity
Verdict: For retirees, the math heavily favors Florida
Why Are So Many New Jerseyans Moving to Florida?
New Jersey has the highest property taxes in America (average 2.3%) plus high income taxes (up to 10.75%). Florida has zero income tax and lower property taxes.
For retirees especially, this is a massive difference. Every year, ~50,000 people move from NJ to Florida - more than any other state-to-state migration except NY to FL.
Income Tax: Florida Wins Big
| Income Level | New Jersey Tax | Florida Tax | Annual Savings |
|---|---|---|---|
| $50,000 | $1,073 | $0 | $1,073 |
| $75,000 | $2,603 | $0 | $2,603 |
| $100,000 | $4,278 | $0 | $4,278 |
| $120,000 | $5,558 | $0 | $5,558 |
| $150,000 | $7,658 | $0 | $7,658 |
| $500,000 | $41,908 | $0 | $41,908 |
Key Detail: Florida doesn't tax pensions, Social Security, 401(k) withdrawals, or any retirement income. New Jersey taxes all of it.
Property Tax: NJ is BRUTAL
This is where New Jersey really hurts.
| Location | Average Rate | On $400k Home |
|---|---|---|
| New Jersey (statewide avg) | 2.30% | $9,200/year |
| Bergen County, NJ | 2.5%+ | $10,000+/year |
| Essex County, NJ | 2.7%+ | $10,800+/year |
| Florida (statewide avg) | 0.89% | $3,560/year |
| Miami-Dade County | 1.01% | $4,040/year |
| Palm Beach County | 1.08% | $4,320/year |
Property tax savings alone: $5,000-$6,500/year on a typical $400k home.
Over 20 years of retirement: $100,000-$130,000 saved in property taxes.
Real Savings: Retiree Example
Married Couple, Age 68, $75k Retirement Income
Income Sources:
- Social Security: $40,000
- Pension: $25,000
- 401(k) withdrawals: $10,000
Living in New Jersey (Bergen County)
- NJ income tax: $2,603/year
- Property tax ($450k home): $11,250/year
- Sales tax (avg): $1,200/year
- Homeowners insurance: $1,800/year
- Total annual costs: $16,853/year
Living in Florida (Palm Beach County)
- FL income tax: $0
- Property tax ($450k home): $4,860/year
- Sales tax (avg): $1,400/year
- Homeowners insurance: $3,000/year (hurricanes)
- Total annual costs: $9,260/year
Florida saves $7,593/year
Over 20 years: $151,860 in savings
That's enough to:
- Leave more to kids/grandkids
- Travel extensively in retirement
- Never worry about running out of money
Cost of Living Beyond Taxes
Housing Prices
| Home Type | North Jersey | South Florida |
|---|---|---|
| 2BR Condo | $350,000 | $320,000 |
| 3BR Single-Family | $550,000 | $450,000 |
| 4BR w/ Pool | $750,000+ | $550,000 |
Housing: Florida is 15-25% cheaper for comparable homes.
Other Costs
- Groceries: Slightly cheaper in FL (~5-10%)
- Utilities: Higher in FL (A/C year-round) vs NJ (heating)
- Gas: Slightly cheaper in FL
- Dining out: Cheaper in FL (no tipping culture difference)
- Car insurance: Higher in FL (more accidents, uninsured drivers)
The Trade-Offs Nobody Talks About
What You Lose Leaving New Jersey:
- Family & friends: This is the #1 reason people don't move
- Four seasons: Fall foliage, crisp winters (if you like that)
- Proximity to NYC: Culture, Broadway, world-class dining
- Great schools: NJ has top public schools (doesn't matter for retirees)
- Strong local communities: Long-established neighborhoods
- Familiarity: Your doctors, your routines, your favorite spots
What You Gain in Florida:
- No state income tax: Keep 100% of retirement income
- Lower property taxes: ~60% less than NJ
- Year-round golf: Play every day if you want
- Beach lifestyle: Ocean access, waterfront living
- Large NJ expat community: You'll find fellow NJ retirees everywhere
- No snow shoveling: Ever again
Weather: The Real Difference
| Factor | New Jersey | South Florida |
|---|---|---|
| Summer | 85°F, humid | 90°F, very humid |
| Winter | 30-40°F, snow | 70-75°F (perfect) |
| Hurricanes | Rare (Sandy 2012) | Real risk Aug-Oct |
| Humidity | Moderate | High year-round |
| Snow | 20-30" per year | Never |
Key Consideration: Florida winters are amazing. Florida summers are oppressive (heat + humidity). If you hate humidity, think carefully.
Best Florida Cities for New Jersey Retirees
Where NJ transplants actually move:
1. Boca Raton / Delray Beach
- Median home: $500k-$700k
- Vibe: Upscale, lots of NJ/NY retirees
- Pros: Great dining, beach access, active adult communities
- Cons: Expensive (for Florida), crowded
2. West Palm Beach / Palm Beach Gardens
- Median home: $400k-$600k
- Vibe: Growing, mix of retirees and young families
- Pros: Restaurants, nightlife, PBI airport
- Cons: Traffic, development rapid
3. Naples
- Median home: $600k+
- Vibe: Wealthy retirees, very upscale
- Pros: Low crime, pristine beaches, world-class golf
- Cons: Expensive, less diverse, isolated
4. Port St. Lucie / Stuart
- Median home: $350k-$450k
- Vibe: Affordable, quieter, older feel
- Pros: Value, less crowded, still close to Palm Beach
- Cons: Less exciting, fewer amenities
Establishing Florida Residency (IMPORTANT)
New Jersey aggressively audits people who claim to have moved to Florida but still have ties to NJ. To properly establish FL residency:
- Get FL driver's license within 30 days of moving
- Register to vote in Florida
- Register vehicles in Florida
- File Declaration of Domicile with FL county clerk ($10)
- Update mailing address with IRS, Social Security, banks
- File part-year NJ return for income earned before move
- Spend 183+ days/year in FL (NJ tracks this)
- Cut NJ ties: Sell NJ home or rent it out, close gym memberships
Warning: If you keep your NJ home as a "second home" and spend summers there, NJ may claim you're still a resident and owe NJ taxes.
Who Should Move to Florida?
✅ Florida is Great If:
- You're retired and want maximum financial security
- You hate NJ winters and don't mind heat/humidity
- Your kids have moved away (less family ties)
- You want a golf/beach lifestyle
- You're in good health (FL healthcare varies)
- Saving $7k-$10k/year matters to your retirement budget
- You're willing to start fresh socially
❌ Stay in New Jersey If:
- Your kids/grandkids are in NJ and you see them often
- You hate heat and humidity (deal-breaker for many)
- You love NYC proximity and use it regularly
- You're in a tight-knit community you'd miss
- You need specialist medical care (NJ has world-class hospitals)
- Money isn't a major concern (you can afford NJ)
- You value four seasons and fall foliage
The Verdict
Financially: Florida is a massive win. Save $7k-$10k/year for typical retirees.
Lifestyle: Depends on you. If you hate winter and love warm weather, it's great. If you love family nearby, it's hard.
For retirees: The math overwhelmingly favors Florida. Most who move don't regret it financially.
The catch: Leaving family is the #1 reason people don't move, despite the savings. Only you can decide if $150k over 20 years is worth being far from grandkids.
Calculate Your Own Savings:
More comparisons: NY vs FL | CA vs FL | IL vs TX
State rankings: Lowest Tax States 2026 | Highest Tax States 2026 | Best States for Retirees
📋 US Expat Returning Home?
If you're an American living abroad and considering a move back to the US, you may have complex tax filing requirements. Even after returning, you may need to catch up on past US tax filings.
Taxes for Expats (TFX) helps Americans abroad and those returning home with:
- Catch-up filings for missed years
- FBAR and FATCA compliance
- Foreign Tax Credit optimization
- Transition planning for your return
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