Did you know that the Sunshine State is one of the top retirement destinations in the word? From its great weather, arts and cultural destinations, and beautiful beaches, this state proves an irresistible destination to those looking to relocate before or after retirement. However, one outstanding factor that separates Florida from the rest is the state’s tax friendliness. Take a more in-depth look at the tax breaks and financial benefits here. This is your chance to take full advantage of what Florida has to offer!
NO STATE INCOME TAX
Florida is one of only seven states that have no personal income tax. It’s no wonder residents of highly taxed states like New York find living here so attractive! For those that are still working, Florida is the best place to stretch your money further. Florida also has one of the more favorable sales tax rates in the country at 7%.
RETIREMENT INCOME EXEMPTION
Because Florida has no state income tax, this means any retirement income is also exempt from state taxation. Any money that’s received from Individual Retirement Accounts, private and public pensions, 401(k), and even social security is completely free of in-state taxation. That alone could benefit thousands in tax savings for retirees who decide to make Florida home.
While property taxes are one of the primary sources of revenue for local governments, property tax rates are considerably low in Florida. The state’s average effective property tax rate is 0.98% which is just below the national average of 1.08%. In addition to the lower rate of Florida’s property tax, there’s a sizable deduction available for lower-income seniors over the age of 65 who’ve lived in the state for at least 25 years. As noted by Kiplinger, Florida residents with household income not exceeding $30,721 (as of 2020) may qualify for an extra homestead exemption of up to $50,000 from some city and county governments.
If I were you, I’d start to browse our website for your ideal retirement home... and when you find it, give us a call!