Tax Reference Guide
Florida Tax Guide for New Residents
Understanding Florida’s tax structure, income, property, sales, and how it compares to your origin state.
The 0% advantage
Florida Income Tax: The 0% Advantage
Florida's complete absence of a state personal income tax is the single most attractive feature of the state's tax structure for relocators. The rate is 0% on all earned income, from a $50,000 salary to a $500,000 bonus, and it applies just the same to pensions, Social Security, retirement account withdrawals, interest, dividends, and investment gains. There is no progressive bracket to climb, no rate to plan around, and no city income tax hiding in the fine print. That predictability makes financial planning straightforward: a household moving from New York, New Jersey, Connecticut, Maryland, or Washington DC keeps the money it used to send to the state tax collector every year.
Florida adds no local taxes on income either. No county, city, or school district in the six counties Michael serves charges a local income tax, wage tax, or earned income tax, which is an extra layer of savings for families arriving from New York City (local tax up to 3.876%), Philadelphia (a wage tax of about 3.75% for city residents), or other local-tax jurisdictions. A small number of Florida businesses pay state-level business taxes, but individuals owe nothing on wages or investment income.
State by state
State Tax Comparison
How the states Michael hears from most line up on income, sales, clothing, and property taxes.
| State | Top Income Tax | Sales Tax | Clothing Taxed? | Property Tax (annual avg) |
|---|---|---|---|---|
| Florida | 0% (no state income tax) | 6% + county surtax (6.5–7% in Florida) | Yes | ~$2,500–$5,500 |
| New Jersey | 10.75% | 6.625% | Yes | $9,000–$12,000+ |
| New York | 10.9% + NYC local tax | ~8% (8.875% in NYC) | Yes | $8,000–$15,000+ |
| Connecticut | 6.99% | 6.35% | Yes | $6,000–$12,000+ |
| Maryland | 6.5% + local (near 9% combined) | 6% | Yes | $4,000–$8,000+ |
| Delaware | 6.60% | 0% (no sales tax) | N/A | $1,500–$5,000 |
| Washington DC | 10.75% | 6% | Yes | $4,000–$8,500+ |
* Florida row highlighted. Property taxes vary by county and community. All figures approximate, current as of September 2026; New York shows the top state rate before local income taxes.
Source: state income tax rates per the Tax Foundation and each state's department of revenue ( 2026 rates); sales tax rates per each state's department of revenue; property tax averages per the New Jersey Department of Community Affairs (2024), SmartAsset and PropertyTaxByState (2023-2026), and Florida county property appraisers.
Where you choose matters
Florida Property Taxes by County
Approximate annual property tax ranges on a typical home in each of the six counties Michael serves.
Indian River County
Vero Beach, Sebastian, Fellsmere. Effective rate around 0.7–0.8%.
$2,500–$3,000/yr
St. Lucie County
Port St. Lucie, Fort Pierce. Around 1.0–1.2% effective.
$3,800–$4,000/yr
Martin County
Stuart, Jensen Beach, Palm City. Around 1.0% effective on higher home prices.
$3,800–$4,000/yr
Palm Beach County
West Palm Beach to Boca Raton. About 0.85–1.2% effective.
$3,800–$4,500/yr
Broward County
Fort Lauderdale, Hollywood, Weston. About 0.95–1.4% effective.
$3,900–$5,000/yr
Miami-Dade County
Miami, Coral Gables, Miami Beach. About 0.75–1.4% effective.
$4,100–$5,000/yr
Source: county property appraiser data (including Ownwell, 2025-26 compilations) and typical local millage across the six counties. Based on typical median annual bills on a median-priced home. Your actual bill depends on assessed value, homestead and other exemptions, and local millage rates. Figures approximate.
Beyond the income tax
Other Florida Tax Benefits for New Residents
The rest of the Sunshine State tax package, in one place.
No State Income Tax
Florida has no state personal income tax at all: wages, salaries, capital gains, interest, dividend, and pension income are free of state tax at every income level.
No Estate Tax
Florida does not impose a state estate tax. The federal estate tax exemption is $13.61 million per person in 2026 (per the IRS), and Florida collects nothing on top when you transfer property.
No Inheritance Tax
Florida has no inheritance tax. Heirs receive assets without a state inheritance levy, unlike New Jersey, Pennsylvania, Maryland, and a handful of other states that still charge one.
Homestead Exemption
Own and occupy your home as your permanent residence by January 1, and Florida removes up to $50,000 of assessed value from your property tax bill, with an extra $25,000 layer on non-school taxes.
No Tax on Social Security or Retirement Income
Social Security benefits, pensions, 401(k) and IRA withdrawals, and other retirement income are not taxed by Florida. A portion of benefits can still be federally taxable depending on your total income; Florida adds nothing.
Related Resource
Want to Lower Your Property Taxes?
Your property tax bill is your assessed value multiplied by your county and city millage rates. If you believe your assessed value is too high relative to what comparable homes in your neighborhood have sold for, Florida law gives you the right to contest it. Here is the practical path:
01
Get your facts
Pull your TRIM notice (Truth in Millage) and gather recent sales of comparable homes in your neighborhood. Comparable sales are the evidence that wins assessments.
02
Check your exemptions
Confirm your homestead exemption and any other exemptions are actually applied by your county property appraiser. Missing exemptions are the most common billing error.
03
Petition the Value Adjustment Board (VAB)
File your petition within 25 days of the TRIM notice mailing, typically in September, and include your comparable sales evidence with the filing.
04
Make your case
Attend the VAB hearing in person or respond in writing, and present your comps clearly. Many homeowners win reductions at this stage without a professional.
05
Know when to bring help
For larger assessments, a property tax agent or attorney can prepare the paperwork, gather the evidence, and represent you before the board.
Michael can connect you with the local resources and professionals who help contest an assessment.
Straight answers
Tax FAQ
01 What is Florida’s income tax rate?
0%. Florida has no state personal income tax, so wages, salaries, bonuses, interest, dividends, and capital gains are all free of state tax. That applies at every income level, from a part-time job to a seven-figure year, and it extends to pensions and retirement withdrawals.
02 Are there local income taxes in Florida?
No. No Florida county, city, or school district levies a local income tax, wage tax, or earned income tax. That is an additional savings for families arriving from New York City, Philadelphia, or other jurisdictions that add a local levy on top of state tax.
03 How do Florida property taxes compare to my state?
Florida property taxes are based on assessed value at effective rates of roughly 0.7% to 1.4% of home value across the six counties Michael serves, with typical annual bills from about $2,500 in Indian River County to $5,000+ in Broward and Miami-Dade. Homestead exemptions and the Save Our Homes cap keep bills lower and more predictable over time, far below the $9,000 to $12,000+ average bills in New Jersey and much of Connecticut and New York.
04 Is there sales tax on clothing in Florida?
Yes. Unlike Pennsylvania and several other states, Florida taxes clothing and footwear at the general rate: 6% state plus the county surtax, which puts most Florida counties at 6.5% to 7%. Baby and toddler clothing (sizes 5T and under, shoes 13T and under) is permanently exempt, and qualifying items are tax-free during the state’s back-to-school sales tax holiday.
05 What about inheritance and estate taxes?
Florida has neither a state estate tax nor an inheritance tax. Federal estate tax rules still apply to very large estates, with the 2026 exemption at $13.61 million per person, but Florida itself collects nothing at the state level when assets pass to your family.
Plan your move, keep more of what you earn
Let’s talk about your tax-smart move to Florida
Michael “Wiz” Wisniewski is a Certified Real Estate Planning Advisor with The Complete Real Estate Team, powered by Dalton Wade Real Estate, serving clients from the Treasure Coast to Florida. He guides relocating families with trust, integrity, and compassion, Florida DRE #3301665. Real estate builds, protects, and transfers generational wealth; the tax structure is part of that plan.
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