Florida State Tax Overview

Learn about Florida’s taxes on income, sales, property, retirement, and more, and see how the state stacks up nationally.

State taxes can be complicated, but it helps to understand how Florida’s tax system works whether you already live there or are thinking about moving.

This guide breaks down the main pieces of the Sunshine State’s tax structure, including income tax, sales tax, property tax, and treatment of retirement income.

Florida tax: Overview

Florida continues to be a major draw for retirees, thanks in part to being one of only nine states without a personal income tax.

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More recently, the state’s biggest tax-related changes have centered not on paycheck taxes, but on easing the burden of higher housing costs.

Florida has also changed the way it handles property tax relief. The standard $50,000 homestead exemption was once a fixed amount, but it is now tied to the annual inflation rate.

In addition, Florida voters approved a constitutional amendment that would substantially increase the state’s homestead exemption.

The measure, known as Amendment 3, raises the exemption from $50,000 to $150,000 in 2027 and then to $250,000 in 2028 for qualifying homesteaded properties. The higher exemption would not apply to school district taxes.

Here is a closer look at taxes in Florida.

[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. That means state tax is not collected on wages, retirement income, or investment income.

Florida retirement taxes

Because Florida does not levy a personal income tax, pensions and other retirement income are not taxed by the state. Florida also does not impose estate or inheritance taxes.

• 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’s statewide sales tax rate is 6%. Local governments can add up to 2% more, and the Tax Foundation puts the average combined rate at 6.98%.

• Groceries: Exempt
• Prescription drugs: Exempt
• Diapers: Exempt
• Some feminine products: Exempt

How much is Florida property tax?

According to the Tax Foundation, Florida’s average effective property tax rate is 0.74%.

Florida Property Tax Breaks for Retirees

Additional Homestead Exemption: Florida residents age 65 and older who meet certain requirements may qualify for an extra homestead exemption from some city and county governments.

Homeowners must apply to receive the additional homestead exemption.

(Note: Income limits for the additional homestead exemption are adjusted each year.)

Update: Florida voters approved a major increase in the state’s homestead exemption.

• Amendment 3 will lift the exemption from $50,000 to $150,000 in 2027 and then to $250,000 in 2028 for qualifying homesteaded properties.
• The larger exemption would not apply to school district taxes.

For eligible homeowners, a larger share of a home’s value would be excluded from taxation, which could reduce property tax bills.

For more details, see our report: What the New Florida Homestead Exemption Means for Property Tax Bills.

Florida gas tax

Florida taxes on alcohol and tobacco