Florida Retirement Tax Guide 2026

Florida does not tax Social Security benefits at the state level in 2026. Federal treatment still applies — up to 85% of benefits may be federally taxable depending on combined income.

Traditional 401(k) and IRA distributions are taxed as ordinary income at both the federal and Florida level (no state income tax). Roth distributions, when qualified, are tax-free at both levels.

Florida has no income tax, so all retirement plan distributions are federal-only — a significant draw for retirees comparing destinations.

RMDs start at age 73 under SECURE 2.0 (rising to 75 in 2033). The first RMD year is the year you turn 73; you can defer that first distribution until April 1 of the following year, but doing so forces two RMDs in one tax year and often pushes you into a higher bracket.

Years between retirement and the first RMD are typically the best window for Roth conversions, especially for Florida residents who owe no state tax on the conversion either. A multi-year ladder filling the 12% or 22% federal bracket can shift large amounts to tax-free Roth status.

Most Florida counties offer additional property tax exemptions, freezes, or deferrals for homeowners aged 65+. These can reduce assessed value, lock in the millage rate at the year you turn 65, or defer the entire bill until the home is sold. Eligibility is often income-tested.

On a $400,000 home, Florida's 0.89% effective rate produces an annual bill of about $3,560. A 50% senior exemption would save roughly $1,780 per year for the rest of your life in the home — apply through your county assessor in the year you turn 65.