Florida Income Tax Calculator 2026

Why Florida has no income tax

Florida funds state operations primarily through the 6% state sales tax (up to 7.5% combined with local discretionary surtaxes), property taxes administered at the county level, documentary stamp taxes on real estate, tourism-related taxes, and corporate income tax (5.5% — only paid by C-corps, not pass-through entities). The absence of personal income tax shifts the burden toward consumption and property.

Because there is no state tax on retirement income, Florida is especially efficient for retirees: Social Security, traditional IRA distributions, Roth conversions, pension income, and 401(k) withdrawals all incur only federal tax. Combined with the state's homestead protections, this is the structural reason Florida attracts a substantial share of the country's high-net-worth retirees.

Florida property tax and the Homestead Exemption

Florida's effective property tax rate of roughly 0.89% is close to the national median, but the state's two homestead protections substantially reduce the cash burden for primary residents:

• Homestead Exemption — up to $50,000 reduction in assessed value for a primary residence ($25,000 base plus $25,000 for non-school taxes on assessed value between $50,000 and $75,000).
• Save Our Homes (SOH) cap — once homesteaded, annual assessed value increases are capped at the lower of 3% or the CPI increase, regardless of market value appreciation. Portable up to $500,000 of accrued cap value to a new Florida homestead.
• Additional senior exemption — counties and cities may grant up to $50,000 more for filers age 65+ meeting the income limit.

Sales tax, tourist tax, and other Florida specifics

Combined sales tax in Florida ranges from 6.0% to 7.5%. Groceries and prescription medications are exempt. The state imposes documentary stamp taxes on real estate transfers (0.7% of price in most counties) and an intangible tax on new mortgages. There is no state estate or inheritance tax and the state has not had one since 2005, when the federal credit it piggybacked on was phased out.

Florida residency for tax purposes

Florida residency is established by physical presence and demonstrable intent. The state itself does not require a residency test (there is no income tax to enforce), but high-income relocators must satisfy their prior state's residency test. Steps that build a defensible Florida residency case include:

• Filing a Declaration of Domicile with the Florida county clerk.
• Obtaining a Florida driver's license and registering vehicles in Florida.
• Registering to vote in Florida.
• Filing the Homestead Exemption application by March 1 the year after purchase.
• Spending more than 183 days per year physically present in Florida.
• Moving primary financial accounts, attorneys, accountants, and physicians to Florida.

Florida tax planning tips

With no state income tax, Florida planning focuses on federal optimization and property tax. Maximize pre-tax 401(k) and HSA contributions for federal savings, time Roth conversions during low-income years to lock in tax-free retirement income, and consider donor-advised funds for charitable bunching. For Florida property, file the homestead application on time, take advantage of SOH portability when relocating within the state, and protest the assessed value annually through the Value Adjustment Board if the appraisal seems high.

Florida and capital gains

Like Texas, Florida does not tax capital gains. A long-term gain held by a Florida resident is subject only to federal rates (0%, 15%, or 20%) and the 3.8% Net Investment Income Tax for high earners. For founders planning a liquidity event, the combined effective rate on a long-term gain in Florida is typically 23.8% versus 37.1% for a California resident on the same gain — a meaningful planning consideration when timing residency changes.