Kelley R. Taylor
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 doesn't have a state personal income tax. 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.
In the News: Gov. Ron DeSantis recently proposed a $115.6 billion 2025-2026 budget for Florida. As Kiplinger reported, the proposal defines 2025 sales tax holidays, including a debated "Second Amendment tax holiday," and a one-time mortgage tax exemption.
For more information see DeSantis 'Second Amendment Summer Tax Holiday' for Florida Turns Heads
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also, tax bills in Florida have gotten so high that more than 66% of Floridian voters passed 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.
For more information see, Florida: Your Property Tax Break Could Get Slightly Bigger in 2025.
[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 sales tax
Florida has a 6% statewide sales tax. Localities can add as much as 2%, and the average combined rate is 7.002%, according to the Tax Foundation.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Diapers are tax-exempt.
- Some feminine products are tax-exempt.
How much is Florida property tax?
In Florida, the average effective property tax rate is 0.82%.
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.)
In the News: A new tax reform proposal in Florida is causing heated debate. The proposed bill, sponsored by state House Rep. Ryan Chamberlin, seeks to study whether the Sunshine State can eliminate property taxes.
For more information see Will Property Taxes Be Eliminated in Florida?
Florida gas tax
Florida taxes gasoline at $0.26 per gallon.
Florida taxes on alcohol and tobacco
| Cigarettes | $1.34 per pack |
| Cigars | tax-exempt |
| Other tobacco products | 85% of wholesale price |
| Beer | $0.48 per gallon |
| Wine | $2.25 per gallon |
| Wine (sparkling) | $3.50 per gallon |
| Liquor | $6.50 per gallon |
Florida estate and inheritance taxes
Florida is one of the states with no estate or inheritance taxes.
Related Content
-
Financial Security vs Financial Freedom: What's the Difference?Having the ability to pivot without worrying about financial support is where financial security becomes financial freedom.
-
Retired and Worried About a Recession? Six Ways to PrepareRetirees can plan for a near-term recession with a range of strategies, from small investment changes to significant lifestyle hacks.
-
How Caregivers for Adults Can Save on Taxes in 2025Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social SecurityTreasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
-
IRS Layoffs Spark Delays, Doubt This Tax SeasonTax Season Tax experts say Trump’s downsizing of the IRS is already causing problems.
-
States with the Highest Income Tax Rates for RetireesState Tax You may reconsider living and retiring in one of these states due to high taxes.
-
AI Tax Scams Target Middle and Older Adults: What to KnowScams Whether you’re a retiree or Gen Z, scammers can gouge big financial losses with the help of artificial intelligence.
-
Tax-Deductible Home Improvements for Retirement in 2025Retirement Taxes Your aging-in-place plan could benefit from the medical expense tax deduction. But watch out for capital gains and property taxes.
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
-
You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons WhyRetirement Taxes With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
