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.
Um, your property tax info isn't even in the ballpark. A million dollar home, minutes from the beach in Jupiter will pay around $8 or $9K in property taxes.
Um I’m looking at my proposed property tax bill from Palm Beach County. Are you telling me that your unsupported opinion is more accurate than the letter I just received from Palm Beach County?
What’s the property appraised at? $33K is a really high tax bill for the home you’re describing. Really high. Unless it’s on Palm Beach or on the water in Naples.
Just telling you what everyone around me just paid in Jupiter last year.
A little over 2 mil
Still seems high, but I’m not going to doubt you. Maybe really recently appraised?
We’re still probably at 50-60% appraisal value vs. current market value.
Outrageously high.
Californiastan recently had a tropical storm. And they have had tornadoes. Danged near every state east of Colorado has had a tornado. Even NY state!! So, those things are everywhere. Yes, we have had three major big T’s near us. But thanks to our LORD Jesus Christ, we have been safe with no damages short the top of one Y shaped tree and no injuries. So, even my wife who spent the grand majority of her life in WA state where we met, is not afraid of being here and loves it here. So, no worries. I could get crushed on the way to Wally World some morning. So, crap happens and it happens everywhere.
Hooau. Thanks for caring about us.
LOL
Sounds like Ogunquit or Portland.
Two of the main drawbacks to Florida right now is Home Owner’s Insurance and Car insurance. Whatever breaks you got from low Property Taxes is more than eaten up by the two I mentioned. Not mention Florida is overcrowded and I have no desire to go there into that mess.
Looking at many states its surprising how many hits they’ve taken since 1950 even Florida where tornado reports seem rare but the FL map looks a lot like Alabama. .
One place around Asheville, NC is almost twister free but its way too close to my otherwise sweet and Godly MIL. ;
I’m the otherwise ... ;-)
This VN combat vet thanks you for that.
Same here brother. CIB, Purple Heart, C Company, 3d Bn, 12th Inf, 4th Inf Division, at An Khe, RVN. 1970. Welcome home brother.
Rockland, Rockport and Camden.... I’m ashamed of my home town but I knew it was a liberal shxthole. I left 43 years ago.
Southern Maine is worse.
Ashville, NC is in the mountains. Sometimes mountains protect towns in the valleys. My hometown, Anniston, AL is in the foothills of the Appalachian Mountains. It is located in a valley as well, between two different mountains (most would call them hills, but around here they are mountains, big, big hills stacked around us), and they have not had any twisters IN town either. But, all around there, there have been many. Here where I live, north of Anniston, we have had three, one which hit the college, Jacksonville State University, just three or four years or so ago. It did major damage on the way up a small valley right up to the college, destroyed several buildings, churches and homes, and ripped down thousands of trees. Sometimes, where the town is located, can affect its weather directly.
Asheville, NC is also super liberal. A couple of years ago they voted in support of reparations for blacks. There was a move to defund the police and 40% of their police force quit and they had a 31% increase in violent crime. Typical liberal town. They probably have pornography in the city school libraries too.
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