En español | Whether you’re already living in the Sunshine State or considering a move there, here’s what you should know about state taxes in Florida. It’s among the lowest tax states in the nation, according to the Tax Foundation.
Florida does not have a personal income tax.
Watch the video below to learn how to identify your 2022 federal income tax brackets.
No. Because Florida does not have a personal income tax, distributions from pensions, 401(k)s, 403(b)s and IRAs are not taxed at the state or local level. Nor is military retirement pay.
AARP's retirement calculator can help you determine if you are saving enough to retire when — and how — you want.
Capital gains from investments and dividends are not taxed at the state and local level, another by-product of Florida not having a personal income tax.
No, but you may pay federal taxes on a portion of your Social Security benefits, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make between $25,000 and $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. And up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.
AARP's Social Security calculator can assist you in determining when to claim and how to maximize your Social Security benefits.
Property tax in Florida is a county tax that’s based on the assessed value of your home. Homes are appraised for market value as of Jan. 1 each year. The average tax rate is 0.98 percent of the assessed value of your home, but property taxes vary widely across the state.
Residents may be eligible for a property tax break of up to $50,000 on their permanent home through Florida’s homestead exemption. If you’re 65 or older, you may qualify for an additional exemption of up to $50,000. Further discounts are offered for eligible widows, widowers and veterans 65 and older.
The Save Our Homes program limits assessments at the lesser of 3 percent or the percent change in the Consumer Price Index, offering another break on property taxes.
Learn about property taxes in your local area on the Florida Department of Revenue website. You can learn about contesting the value of your property on the revenue department’s website.
In December 2022, Florida passed a measure allowing a property tax refund for residents who could not live in their home for at least 30 days because of damage from hurricanes Ian or Nicole. The refund is based on how many days the home was uninhabitable. Affected homeowners must apply for the rebate with their local county property appraiser between Jan. 1 and April 1, 2023.
There is no inheritance or estate tax in Florida.
If there’s no surviving spouse or joint tenant, the deceased’s property will stop receiving the homestead exemption the year following the owner’s death. But if the homeowner was married, the surviving spouse will continue receiving the homestead exemption for as long as the spouse owns the property as his or her permanent residence. The same rule applies to a joint tenant owner with rights of survivorship who meets certain criteria.
Residents 65 or older may be eligible for a property tax break with an additional homestead exemption set by a local government. Visit this web page to view county-specific info about property tax assessments and exemptions. Veterans 65 or older who are partially or totally permanently disabled may receive an additional homestead property discount. Widows and widowers can receive a $5,000 property tax exemption starting in 2023.
The Save Our Homes assessment limitation caps assessments at 3 percent, or the percent change in the Consumer Price Index, whichever is less. The limit applies after the first year a home receives a homestead exemption with the property assessed at just value.
If you split your time between Florida and another state that has a personal income tax, that other state’s tax laws would determine whether you are a resident there who must pay personal income tax. You may be required to live in Florida at least 183 days, or one day more than six months, to be considered a Florida resident and escape paying income tax in the other state.
To qualify for Florida’s homestead exemption, you must establish permanent residency in the Sunshine State and relinquish any similar property tax exemption in another state. Some ways to prove permanent residency may include a Florida driver’s license, license plate number or voter registration number. If you also own a home in another state, you should review that state’s residency rules as well.
Because Florida does not have a personal income tax, military pensions and active-duty pay are not taxed.
Florida residents do not need to file a state tax return because the Sunshine State does not have a personal income tax.
Sharon Waters, a former CPA, has written for Wired.com and other publications.
Saturday, Apr 8, 2023 at 8:30 a.m.
Woodland Terrace Park
Saturday, May 13, 2023 at 8:30 a.m.
Woodland Terrace Park
Saturday, Jun 10, 2023 at 8:30 a.m.
Woodland Terrace Park
Find information about getting a COVID-19 vaccine in your state. CDC information is available at cdc.gov/coronavirus; additional AARP information and resources are at aarp.org/coronavirus. En español, visite aarp.org/elcoronavirus.
JOIN FOR JUST $16 A YEAR