No state income tax in Florida
The Florida Constitution bars a state tax on the income of individuals who live in Florida. There is also no city income tax. You still pay federal income tax as before, and Florida collects sales tax and property tax.
What you give back
- Property tax resets to the purchase price when you buy. The seller's tax bill is not a guide.
- If the home is your permanent residence, the homestead exemption takes about $50,000 off the taxable value for most taxes (less for school taxes) and limits yearly assessment increases to 3% or inflation, whichever is lower. A property tax amendment on the November 3, 2026 ballot could change these numbers.
- Homeowners insurance in Florida often costs several times the national average, and flood insurance may be required by the lender.
- Condos add monthly fees, which have risen with the new reserve rules.
Leaving your old state
High-tax states such as New York and California can audit a move. Change your driver's license, voter registration and vehicle registration, file a Florida Declaration of Domicile with the county clerk, and keep a record of where you spend your days.
For Canadians and other non-US residents
Buying in Florida does not change where you are tax resident. If you keep tax residency in Canada or another country, you keep paying tax there on your worldwide income. Florida's lack of income tax only helps people who become US residents of Florida.
All results are estimates. Use your own effective rate from last year's return, and confirm your situation with a tax professional.
Questions
Which rate should I enter for my current state?
Your effective rate: state income tax paid last year divided by your income. It is usually well below the top bracket.
Does Florida tax retirement income?
Florida has no personal income tax, so pensions, IRA withdrawals and Social Security are not taxed by the state. Federal tax still applies.
