Kelley R. Taylor
Navigating the complexities of state taxes can be daunting, but understanding Florida's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Sunshine State's tax system, from income and sales taxes to property taxes and retirement benefits.
Florida tax: Overview
Florida is often considered a top destination for retirees, but adults of all ages can enjoy the fact that Florida is one of nine states that don't have a state personal income tax.
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Florida property rates are relatively low compared to the national average, and a Florida tax relief bill passed last year allows Floridians to enjoy many items tax-free.
More than 66% of Floridian voters approved a ballot measure aimed at increasing their property tax break. Amendment 5 would tie the state’s homestead exemption to the annual national inflation rate.
Currently, Florida homeowners can get a property tax break of up to $50,000 of their home’s assessed value. By tying the homestead exemption to the nation’s Consumer Price Index (CPI), if inflation goes up annually — so does your exemption.
For more information, see Florida Changes Homestead Exemption Property Tax Break.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Florida income tax
Florida is one of the nine states with no income tax. You won't pay state tax on wages, retirement income or investment income.
Florida retirement taxes
There is no personal income tax in Florida. The state won’t tax your pension or any other type of retirement income. There are no estate or inheritance taxes either.
- Income Tax on Taxable Income: N/A
- Social Security: Not taxable
- Pensions: Not taxable
- 401(k) and IRA Distributions: Not taxable
Florida sales tax
Florida has a 6% statewide sales tax. Localities can add as much as 2%, and the average combined rate is 6.98%, according to the Tax Foundation.
- Groceries: Exempt
- Prescription drugs: Exempt
- Diapers: Exempt
- Some feminine products: Exempt
How much is Florida property tax?
In Florida, the average effective property tax rate is 0.74%, according to the Tax Foundation.
Florida Property Tax Breaks for Retirees
Additional Homestead Exemption: Florida residents ages 65 and older who meet certain criteria can receive an extra homestead exemption from some city and county governments.
Homeowners must apply to receive an additional homestead exemption.
(Note: Income limitations for the additional homestead exemption are adjusted annually.)
Florida gas tax
Gasoline | $0.04 per gallon |
Diesel | $0.04 per gallon |
Florida taxes on alcohol and tobacco
Product | Tax amount |
|---|---|
Cigarettes | $1.34 per pack |
Other tobacco products | 85% of wholesale price |
Medical marijuana | 0% |
Source: Sales Tax Handbook
Product | Tax amount |
|---|---|
Wine | $2.25 per gallon |
Sparkling Wine | $3.50 per gallon |
Beer | $0.48 per gallon |
Liquor | $6.50 per gallon |
Source: Sales Tax Handbook
Florida estate and inheritance taxes
Florida is one of the states with no estate or inheritance taxes.
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