Taxes

Last Updated: December 26, 2024

Florida doesn’t have a state income tax—though federal income tax is still required—and that’s not the only tax relief residents take advantage of. Florida also doesn’t have an estate or inheritance tax as well as intangibles tax, or taxes on investments.¹

Out of the 45 states that have sales tax, Florida ranks number 17—in the middle.² Florida’s sales tax is 6% but some local jurisdictions have their own local rate.³ For instance, Broward County in South Florida collects an additional 1%, so the sales tax there is 7%.⁴ Other taxes and exemptions include:

• Property tax homestead exemption. There’s a homestead tax exemption up to $50,000 for primary residences in Florida. A homestead tax exemption safeguards your home from creditors after the death of a spouse. 

• Widow(er) exemptions. An extra $500 annual exemption is available to widows and widowers who have not remarried. 

• Senior citizen exemption. These are only available for certain cities and counties. In Miami-Dade County, the property must already qualify for a homestead exemption, meet income restrictions, and must have at least one homeowner who is 65 years of age or older as of January 1.⁴

• Corporate income tax. If you move a business to Florida, your company will need to pay corporate income taxes.

Keep in mind that while the state of Florida doesn’t impose property taxes, each county and jurisdiction has its own local property taxes.

Taxes in Retirement

Because Florida doesn’t have a state income tax, that means your 401(k) withdrawals are not subject to state taxes too. Also, Social Security benefits aren’t taxed at the state level. This can be a huge financial benefit, so be sure to factor this in if you’re planning your retirement budget for the state of Florida.

SOURCES:

1. “Florida Tax Guide.” StateOfFlorida.com, Accessed 1 November 2021.

2. Cammenga, Janelle. “State and Local Sales Tax Rates, 2025.” Tax Foundation, 8 July 2025, https://taxfoundation.org/data/all/state/sales-tax-rates/. Accessed 27 December 2025.

3. “Florida Tax Guide.” StateOfFlorida.com, https://www.stateofflorida.com/taxes. Accessed 27 December 2025.

4. “Florida Sales Tax Rates: Broward County.” Sales Tax Handbook, October 2021, https://www.salestaxhandbook.com/florida/rates/broward-county. Accessed 27 December 2025.