Florida Taxes: What You Save (and What You Don't) in 2026

The bottom line: Florida has zero state income tax — the largest single reason people relocate here. Property tax runs 0.8–1.1% of assessed value depending on county (homestead exemption knocks $50,000 off assessed value for primary residences). Sales tax is 6% statewide plus up to 2% local. Specialty fees — vehicle registration, tolls, insurance premium taxes — are higher than most states. Net for a typical mover from a high-tax state: still saving thousands per year, but the savings aren't quite as big as the income-tax-only comparison suggests.

No State Income Tax: How Much It Actually Saves

Florida is one of nine states with no income tax (along with Alaska, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming). For a household moving from a high-tax state, this is the main financial motivation.

These are approximate savings and ignore federal tax deductions (SALT cap limits the deduction of state taxes to $10,000 for most filers, which actually increases the net savings for high earners moving to Florida).

What Counts as Florida Residency for Tax Purposes

This matters more than most people realize. If you keep a home in a high-tax state, that state will aggressively audit your FL residency claim. To establish clean Florida residency:

• Spend 183+ days per year in Florida (primary test)
• Get a Florida driver's license and register your cars here
• Register to vote in Florida
• File a Declaration of Domicile with your county clerk ($5–$15, super simple)
• Move banking, investment accounts, and doctors to Florida
• Sell or rent out the home in your prior state (or make it visibly non-primary)
• Claim homestead exemption only on your Florida home

California, New York, New Jersey, and Illinois routinely audit former residents — some win back the state-tax liability for 5+ years if you haven't cleanly severed. A $300/hour tax attorney for 2 hours at move-time saves most people $10k+ in audit risk.

No Estate or Inheritance Tax

Florida has no state-level estate tax or inheritance tax. Combined with the federal estate tax exemption ($13.61M per person in 2024, portable between spouses), most families pay zero state or federal estate tax. For retirees with $5M+ in assets, this is often a bigger motivator than the income tax — especially for those moving from Oregon, Washington, Illinois, or the Northeast (where state estate taxes start at $1M–$7M).

Property Tax: Moderate but with Big Exemptions

Effective property tax rates in Florida counties range from about 0.68% (Walton County) to about 1.15% (St. Lucie, Marion). The statewide average is approximately 0.91% — slightly below the 1.02% national average. On a $400,000 home, that's roughly $3,600/year statewide — but the homestead exemption cuts this significantly.

The Homestead Exemption

Florida's homestead exemption gives primary residences:

• $25,000 off all property tax (including schools)
• Plus $25,000 additional exemption on the portion of assessed value between $50k and $75k (not applied to school taxes)
• Save Our Homes cap: annual assessed-value growth limited to 3% or CPI, whichever is less

Combined, this is typically a $800–$2,000/year saving on most Florida homes — and the Save Our Homes cap is enormous for long-term residents. A home owned 20 years can have an assessed value 40–60% below market value, vastly reducing property tax vs a new buyer of an identical nearby home.

Portability: Florida allows you to transfer up to $500,000 of your Save Our Homes cap when you sell and buy another Florida primary residence within 2 years. This makes moving within Florida far cheaper than it seems.

Other Property Tax Exemptions

• Senior exemption (65+): up to $50,000 additional exemption on low-income seniors (income below $36,614 in 2025)
• Widow/widower: $5,000 exemption
• Disabled veteran: partial exemption; 100% permanently disabled veterans get full exemption
• Surviving spouse of veteran killed in action: full exemption
• First responder disability: full exemption for Florida first responders permanently disabled in the line of duty

Sales Tax: 6% Base + Local Surtax

Florida's base sales tax is 6%. Counties add 0–1.5% in local option surtax. Your effective rate by county:

• Miami-Dade: 7%
• Broward: 7%
• Orange (Orlando): 6.5%
• Hillsborough (Tampa): 7.5%
• Sarasota: 7%
• Lee (Fort Myers): 6.5%
• Duval (Jacksonville): 7.5%

What's not taxed: groceries (prepared food IS taxed), prescription drugs, residential rent, most services, and medical equipment. Clothing under $75 is exempt during Florida's back-to-school sales tax holiday (first weekend of August most years).

Vehicle and DMV Fees: Higher Than Average

Florida charges a one-time $225 Initial Registration Fee on any vehicle newly registered to a FL resident. This stings if you move with multiple cars. Plus:

• Title transfer: $85
• Tag/plate: $30–$70 depending on weight and type
• Annual renewal: $28–$90 depending on weight
• Driver's license original: $48

Good news: Florida has no personal property tax on vehicles, unlike many states (Connecticut, Virginia, Missouri, Arkansas) that charge 1–4% annually on assessed vehicle value. Over 5 years, this saves most families $1,500–$5,000.

Insurance Premium Tax: Built Into Your Rates

Florida taxes insurance premiums at 1.75–2% — among the highest in the country. This is baked into your auto, homeowners, and health insurance rates, so you don't see it on a bill, but it's one reason Florida insurance runs expensive.

Tolls: Everywhere in Florida

Florida has 740+ miles of toll roads — Turnpike, Veterans Expressway, Polk Parkway, Suncoast, I-95 Express Lanes, SR 417/429 in Orlando, 408/528 in Orlando, I-75 in Miami-Dade, etc. Get a SunPass transponder (free at most Publix or online at sunpass.com) or link your license plate to the TOLL-BY-PLATE system. Typical Florida commuter spends $35–$150/month on tolls.

The Bottom-Line Calculation for Movers

For a household moving from a high-tax state to Florida:

• State income tax savings: $4,000–$20,000+/year (depending on income and origin state)
• Property tax: roughly break-even or slightly cheaper vs most origin states
• Sales tax: comparable or slightly higher
• Vehicle costs: +$200–$500/year vs most states (no personal property tax offsets this for multi-car households)
• Insurance: +$3,000–$10,000/year vs most origin states (property + auto)

Net savings for a typical mover household earning $150k: $4,000–$12,000/year after all Florida-specific costs factored in. For retirees with investment income, pensions, or large asset bases: typically $8,000–$25,000+/year. For ultra-high-net-worth movers or business owners with pass-through income: can easily hit $50k–$500k+/year.

Florida's tax advantages are real, but do the full math before you move — insurance and car costs eat a significant chunk of the income-tax savings for most households. For the full picture, read our Cost of Living guide.

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