Taxes in Florida
Updated:
By: Lauren Hamer
Sr. Editor
Edited By: Jeff Smith
Sr. Content Manager
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Florida is one of the nation’s most tax-friendly states for retirees, but working residents benefit from these exemptions, too. Below, we explain various Florida state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
Florida Tax Rates
| State Sales Tax | 6% |
| Avg State/Local Sales Tax | 7.01% |
| Gas Tax | $0.19 per gallon |
| Diesel Tax | $0.19 per gallon |
| Cigarette Tax | $1.34 per pack |
| Income Tax | 0% |
| Effective Tax Rate: | 0% |
| Property Tax | 0.89% |
| Social Security Tax | None |
| Medical/Dental Deduction: | Yes |
| Federal Income Tax Deduction: | Yes |
| Retirement Tax | None |
Florida State Taxes Explained
Florida Sales Tax
6% (food, prescription and over-the-counter drugs exempt). Additional local sales and special district taxes can increase the combined rate as high as 8%.
Florida Income Taxes
Florida does not impose a state income tax.
Florida Property Taxes
Florida’s average effective real estate tax rate is 0.89%, or $1,914 on a $215,300 home.
Taxpayers who own a permanent residence in Florida are eligible to receive a homestead exemption of up to $50,000. The first $25,000 applies to all property taxes. The additional exemption of up to $25,000 applies to the home’s assessed value between $50,000 and $75,000 and only offsets nonschool taxes.
Municipal governments may have an ordinance granting seniors over age 65 another $50,000 exemption. Some Florida counties exempt property tax 100% on real estate valued at less than $250,000 when the homeowner makes it the permanent residence for 25 or more years.
Veterans who are 65 or who are partially or totally permanently disabled may qualify for a property tax discount on their home. The discount is equal to the percentage of the veteran’s permanent, service-connected disability as determined by the United States Department of Veterans Affairs.
See the Florida Department of Revenue Property Tax Oversight page to find details about real estate taxes in the county you’re considering for retirement.
Florida Retirement Taxes
Florida does not tax retirement income.
Florida Estate and Inheritance Taxes
There is no inheritance tax or estate tax in Florida.
For general information on Florida taxes, visit the Florida Department of Revenue. New residents can review tax information here.