Florida State Tax Guide: What You’ll Pay in 2024
Florida is one of the most tax-friendly states for older workers and retirees. It’s one of just seven states that don’t collect personal income tax, allowing residents to benefit from tax-free pensions and retirement pay, along with no state taxes on Social Security or investment income. Florida also doesn’t have an inheritance or estate tax.
The big picture:
- Income tax: 0 percent
There is no personal income tax at the state or local level in Florida.
- Property tax: 0.91 percent of a home’s assessed value (average)
Property taxes vary widely by county across Florida, with an average rate of 0.91 percent of a home’s assessed value in 2021, according to the Tax Foundation.
- Sales tax: 7 percent (average combined state and local)
The state sales and use tax rate is 6 percent, although some goods and services are exempt, such as groceries and prescription medicine. Counties are allowed to add a discretionary sales surtax, with current rates ranging from 0 percent to 1.5 percent. The average local sales tax rate is 1 percent, bringing the state’s combined average rate up to 7 percent, according to the Tax Foundation.
How is income taxed in Florida?
Florida does not have a personal income tax.
Watch the video below to learn how to identify your 2023 federal income tax brackets.
Are pensions or retirement income taxed in Florida?
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.
AARP's retirement calculator can help you determine if you are saving enough to retire when — and how — you want.
What about investment income?
Capital gains from investments and dividends are not taxed at the state or local level, another by-product of Florida not having a personal income tax.
Does Florida tax Social Security benefits?
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.
How is property taxed in Florida?
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 of each year by county appraisers. The average tax rate is 0.91 percent of the assessed value of your home, but property taxes vary widely across the state.
Residents who own property and make it their permanent residence may be eligible for a property tax break of up to $50,000 through Florida’s homestead exemption. Further discounts are available to property owners with disabilities, veterans and active-duty military service members, disabled first responders and owners 65 years and older who meet certain qualifications. Find more information on the state’s Department of Revenue website.
Once you qualify for a homestead exemption, property assessments for each following year can’t increase more than 3 percent or the percent change in the Consumer Price Index, whichever is less. This is known as the Save Our Homes program, offering another break on property taxes.
Learn more about property taxes, including how to contest the value of your property, on the state’s Department of Revenue website.
What about sales tax and other taxes?
- Sales and use tax: There’s a 6 percent tax on many, but not all, consumer goods and services. All counties, excluding Collier County, levy an additional surtax, with rates currently ranging from 0.5 percent to 1.5 percent. For certain transactions, like sales on vehicles, boats, aircraft and mobile homes, the local surtax applies only to the first $5,000 of sales. Find your local tax rate using the Department of Revenue’s informational chart.
- Florida doesn’t tax most groceries, although some food prepared and sold for immediate consumption, such as sandwiches, is taxable.. Prescription and nonprescription drugs are not taxed, and neither is medical equipment or most over-the-counter medical items. New exemptions, as of 2023, include baby and toddler products, diapers and incontinence products, oral hygiene products and firearm safety devices. A list of nontaxable items is available on the Florida Department of Revenue’s website, along with a list of “sales tax holidays,” when certain taxable items, like clothing and impact-resistant doors or windows, become tax-free for limited time periods.
- Florida’s use tax applies to items purchased out of state when brought into Florida within six months of the purchase date. Examples include items bought online and furniture delivered from another state. No use tax is due if a sales tax of 6 percent or more was paid to the out-of-state seller. If the seller charged less than 6 percent, you must pay the difference.
- Gas and diesel: The state gas tax is adjusted annually. As of Jan. 1, 2024, Florida’s combined state tax rate on motor fuel is $0.36525 per gallon, up $0.013 from last year. The combined tax rate on diesel fuel is $0.374, an increase of $0.013 from 2023. Additional local taxes vary per county.
- Alcohol: Beer is taxed at $0.48 per gallon. Wine is taxed at $2.25 to $3.50 per gallon, depending on the percentage of alcohol and whether it’s sparkling wine. Liquor is taxed at $2.25 to $9.53 per gallon, depending on the percentage of alcohol. The purchase of beer, wine and liquor is also subject to Florida’s general sales tax, plus any additional surtax imposed by the county.
- Lottery winnings: There’s no state tax on lottery winnings, but you’ll still owe federal income tax on your prize money. Find more information on the Florida Lottery website.
Will I or my heirs have to pay inheritance and estate tax in Florida?
There is no inheritance or estate tax in Florida.
What happens to the homestead exemption when the property owner dies?
If the deceased was a homestead property owner and has a surviving spouse, the property will continue to receive the homestead exemption in the surviving spouse’s name. If another person owns the property as a joint tenant with rights of survivorship, and the joint tenant previously applied for the exemption and lives on the property as his or her permanent residence, the property will continue to receive the homestead exemption in the joint tenant’s name. The homestead exemption will remain in place for as long as the spouse or joint tenant owns the property and maintains it as his or her permanent residence.
Are there any tax breaks for older Florida residents?
On top of the state’s homestead exemption program, some county and municipal governments offer an additional $50,000 property tax break for residents 65 years or older who meet certain requirements, including a household income at or below $36,614. Veterans 65 or older who are permanently disabled may also receive an additional homestead property tax break.
Widows and widowers, permanently disabled individuals and others who qualify can receive a $5,000 property tax exemption.
Some counties offer a reduction in a property’s assessed value when an increase in property value results from the owner constructing the property to provide living quarters for the owner’s or spouse’s parent(s) or grandparent(s).
For more tax information on the Florida Department of Revenue’s website or by contacting your county’s property appraiser office.
Can I qualify for Florida’s tax benefits and breaks as a part-time resident?
If you split your time between Florida and another state that has a personal income tax, you must refer to the other state’s tax laws to determine whether you must pay income tax. Many states use a “183-day rule,” which would require you to live in Florida at least 183 days per year to be considered a Florida resident and escape paying income tax in the other state.
To qualify for Florida’s homestead exemption, you must provide proof of permanent residency and relinquish any similar property tax exemptions in all other states where you reside. Valid residency documentation includes a Florida driver’s license, vehicle license plate number or voter registration number. Find the full list on the homestead exemption application form.
Are military benefits taxed in Florida?
Because Florida does not have a personal income tax, military pensions and active-duty pay are not taxed.
What is the deadline for filing Florida state taxes in 2024?
Florida does not have a personal income tax, but property taxes are due by Sunday, March 31. Property owners may receive a discount for early payment (4 percent in November, 3 percent in December, 2 percent in January, 1 percent in February). The deadline for filing a 2023 federal tax return is April 15.
Sharon Waters, a former CPA, has written for Wired.com and other publications.
Grace Dickinson is a writer for aarp.org who covers federal and state policy. She previously wrote for The Philadelphia Inquirer. Her work has also appeared on sites including HuffPost and Eater.
Editor's note: This article was originally published on Feb. 8, 2023. It has been updated to reflect new information.
