Posted on 08/26/2023 8:31:51 PM PDT by SeekAndFind
While choosing to retire in Florida isn’t the best choice for everyone, relocating to the Sunshine State comes with its share of benefits. Of course, some people move to Florida for the warm weather and plentiful beaches, but that’s not all the state has to offer.
Florida happens to be one of the most tax-friendly states for retirees, and plenty of out-of-state retirees are taking notice. For example, Kiplinger previously reported on migration data showing that Florida gained residents from high-tax states. (Between 2020 and 2021, more than 84,000 new Florida residents came from New York alone.)
If Florida is already your first choice for retirement, you’re not alone. According to a 2022 study, roughly 12% of all retirees who moved out of another state chose Florida as their destination, making it a top choice for retirement relocations in the U.S.
But you may be wondering where in Florida other retirees are going. Well, the same study found that the majority of new Florida retirees chose the Palm Bay area to call their home. Tallahassee was also a popular retirement spot for new Floridians.
But regardless of which part of Florida you have your eye on, you are bound to reap some benefits, at least where taxes are concerned.
Perhaps the biggest reason people choose to retire in Florida is the state’s tax treatment of retirement income. There are plenty of states that don’t tax Social Security benefits, but there aren’t too many states with no income tax at all.
Florida won’t tax any of your income, regardless of its source. That means you won’t pay state tax in Florida on your 401(k) distributions, investment income, or even your wages, should you choose to go back to work or to unretire.
Florida's average combined state and local sales tax rate of 7.02% isn’t necessarily low compared to other states, but it’s not one of the highest either. And Floridians have more sales tax holidays than any other state in the country. Many of these tax holidays were recently expanded due to a $1.3 billion Florida tax relief bill.
The tax relief package also made several children’s products permanently tax-exempt, so you may save some money if, for example, you want to spoil the grandchildren when they come to visit. Here are just a few of the things you can buy-tax free.
You can also purchase tickets to events, such as concerts in Florida, without paying sales tax, until September 4, 2023.
Property taxes in Florida aren’t the lowest in the U.S., but the median average Florida property tax bill of $2,143 is less than in most states, according to PropertyShark. And with an average effective property tax rate below 1%, even homes with higher tax valuations may cost you less in property tax than you’re used to.
Still, not everyone who relocates to Florida will experience lower tax bills, and some will see more savings than others.
By now, you may have heard that a ticket in Florida matched all six numbers to win the record-high, August 8 $1.58 billion Mega Millions jackpot. But the winner won’t pay state taxes on the payout. That’s because Florida is one of the states that won’t tax your Mega Millions payout, or any other lottery winnings, for that matter. Depending on how much you win, that could result in savings worth millions of dollars.
Of course, most people won’t win a lottery jackpot, but if you hope to take home some lottery winnings, state taxes are something to consider. Just don’t forget you’ll still be on the hook for federal taxes. Lottery jackpots, including the Mega Millions payout after taxes, will always be much less than the advertised amount.
You may also have heard, however, that some retirees have been fleeing Florida. For example, nearly 50,000 Floridians landed in Georgia alone in 2021, according to US Census Bureau data.
But if Florida is so great, why are some retirees leaving? Tax breaks are just one factor some people consider when deciding whether to remain in or retire in Florida.
So, before making the move to any state, it’s good to consider all aspects of a new location, so you can make the best decision for yourself and your family.
I am a 6th generation Floridian and your list mirrors my own as to why I left Florida three years ago. I am much happier homesteading in the Ozarks where I can literally go days without seeing another person.
We were half/snow birds spending most of December, January and February in the Fort Pierce/Port St. Lucie area, but my wife's health reasons prevents long distance travel so we haven't been to FL for several years.
Living in Western PA, the brutal part of winter was avoided and the worst heat and hurricane season of FL was also avoided, the best of both states.
We tried living in Florida for an entire year back in the early part of the 2000s, but could not stand the summer heat, humidity and bugs/critters.
Switched plans and went back to being half snow birds {whole snow birds usually spend 5-6 months in FL} and quarter pounders are there for about 5-6 weeks... it's all good.
Wow, long time Floridian!
The ozarks are beautiful!
My bride’s family is from there
I love the hot weather and hate perverts. Florita sounds PERFECT!
When I lived in LA (lower Alabama) I met several couples from NY and Mass that decided to retire in Alabama instead of Florida. Property taxes in Bama were very low. My property taxes on a 1/2 acre lot and a house was $350/year.
Low property tax is BS. 3bdrm 3bath 2 car garage in Palm Beach County $33,000 per year prop tax. Raping by Citizens insurance $12,5000. Other expenses negligible.
nice try....
BTTT!
We retired from Coastal Georgia and are currently living in South Florida on a sailboat in the Treasure Coast. It’s cooler here than in Coastal Georgia, we love the lower tax rates and deal with the higher sales taxes by not buying stuff just to buy stuff.
We’ve been here 3 years. Saw A snake, A shark, a bunch of Dolphins, manatees and rabbits. The bugs are bugs. There are ways to deal with them without chemicals.
We don’t currently own a car, but, the bus system is top notch here and is free. If we need to rent a car to go somewhere, we can easily get one. If we don’t want to go to the grocery, we can Insta-cart.
I loved Coastal Georgia and go back whenever we can. But, Florida is VERY pleasant.
(By the way...it’s full here....if you want to move south, Coastal Georgia still has some room.)
I went on a run with a groups early this morning. When I sat down on the sidewalk afterward to relax, I had ants biting me, and flies and no-see-ums flying round my face. Millions of cubic feet of air available, and they gotta fly round my face.
Correct. Florida summers especially weed out the weak players.
I live on the Gulf coast and could write a book about salt air corrosion. I’ve had aluminum screen door hinges dissolve in less than a year.
Insurance for home/auto is crazy expensive.
New homes at existing prices mean way high real estate taxes.
Is it a common hazard? The map looks like one of Hunter's modern art pieces!
Where are you generally? We're in a cute little forest in west Central Florida, non-flood, non-evacuation zone but close to the beach. Just too much "gardening" (mainly collecting deadfall for fires ;-) - We're both 68. A 3/2 place out of a tornado alley would be nice!
PSA
Don’t come to Florida, it’s a hot and dangerous place.
Especially if you’re a liberal.
5.56mm
Good for you. Thanks for your service.
I lived there several years, in Naples, close to the Everglades. Alligators in the swimming pool, but not such a huge problem, as Animal Control comes to get them and take them back to the swamp. They do eat cats, so people need to be told to keep them inside. Hurricanes? Been through a few, had hurricane closet with weeks worth of canned and bottled food.
Made friends there easily, but my kids were back on the West Coast. So I left.
I actually like the heat. Friends here in Spokane think I’m nuts to leave AC off until it’s 98 outside. Weigh 110 lbs, so that helps, I think.
This is laughable - the 3 reasons retirees leave Florida.
The far and away #1 reason is that they miss their kids and grandkids up north. The #2 reason (that I see) is folks just looking for the mountains in TN and NC. They want at least 3 seasons.
I have never heard of any retiree leaving FL because of insurance costs. That’s just a ridiculous assumption.
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