Does Florida Tax Social Security and Retirement Income?

Florida has no income tax, so Social Security is not taxed

Florida does not tax Social Security benefits because it does not tax personal income at all. Article VII, section 5 of the Florida Constitution prohibits a state tax on the income of residents beyond an amount that could be credited against federal tax, and no such credit exists. There is no state return to file, and federal rules alone decide how much of a benefit is taxed. (Florida Constitution, Article VII, section 5: Estate, inheritance and income taxes)

The federal government is a separate matter. Up to 85% of a benefit can be taxed on a federal return once other income passes fixed thresholds, wherever you live. Our taxable Social Security calculator shows how much of yours is counted.

No Florida tax on any pension

Private-employer pensions, Florida Retirement System benefits, federal civil service annuities and military retirement pay are all untaxed by Florida. That also holds for a pension earned in another state: once the recipient is a Florida resident, federal law (4 U.S.C. 114) stops the former state from taxing the payments, and Florida has no income tax to apply. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)

IRA and 401(k) withdrawals and Roth conversions carry no state tax

Withdrawals from traditional IRAs and 401(k) plans, required minimum distributions and Roth conversions are taxed only by the federal government for a Florida resident. A $100,000 conversion taxed at California's 9.3% bracket rate costs about $9,300 in state tax, and at New York's 5.9% rate about $5,900; for a Florida resident the state cost is zero. (Florida Constitution, Article VII, section 5: Estate, inheritance and income taxes)

The state of residence on the date income is received is what counts. A conversion or large withdrawal completed while still a resident of the former state is taxed there, on that state's resident or part-year return, even if the move to Florida happens later the same year. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)

To size a conversion against federal brackets and Medicare surcharges, see the Roth conversion calculator; for required withdrawals, the RMD calculator.

No state tax on interest, dividends or capital gains

Florida does not tax interest, dividends or capital gains received by individuals. A resident who sells appreciated securities or a business pays federal tax only. Gains on real estate or a business located in another state can still be taxed by that state as income from sources there. (Florida Constitution, Article VII, section 5: Estate, inheritance and income taxes)

Florida also has no annual tax on holdings of stocks and bonds. Its intangible personal property tax on stocks, bonds, mutual funds and money market funds was repealed effective January 1, 2007, and no return has been required for 2007 or any later year. (Florida Department of Revenue, TIP 07C02-01: Repeal of Annual Intangible Personal Property Tax)

There are no rates, brackets, deductions or exemptions because there is no personal income tax. The prohibition is in the state constitution, so introducing one would require a constitutional amendment approved by at least 60% of voters, not just an act of the Legislature. (Florida Constitution, Article VII, section 5: Estate, inheritance and income taxes)

Counties and cities may give homeowners 65 or older an additional homestead exemption of up to $50,000 against their own levies. Household adjusted gross income must be under a limit that is indexed each January; the Department of Revenue lists it as $38,686 for 2026. Each county and city decides whether to offer the exemption and how much. (Florida Department of Revenue: Two additional homestead exemptions for persons 65 and older (2026 income limitation of $38,686))

A second local-option exemption wipes out the adopting county's or city's tax entirely for owners 65 or older who have lived in the home for at least 25 years, if its just (market) value is under $250,000 and household income is under the same limit. (Florida Department of Revenue, PT-110: Property Tax Benefits for Persons 65 or Older)

Florida has no age at which property taxes stop. The breaks for older owners are these income-tested exemptions and the homestead tax deferral described below; everything else (the homestead exemption, Save Our Homes and portability) is available at any age. (Florida Department of Revenue, PT-110: Property Tax Benefits for Persons 65 or Older)

The same three households appear on every state page, so the figures can be compared across states. Each is a full-year resident taking the standard deduction, with no dependents. The figures are state income tax only: any county, city or school district income tax is described on this page but not added in. Pension income is from a private employer, and IRA figures are taxable withdrawals from traditional accounts. The state tax is our calculation from Florida's published 2026 rules; it is an illustration, not a return.

These households also owe federal income tax, which does not change with the state. The tax bracket calculator and the guide to taxes in retirement cover that side.

Property tax is levied by counties, school districts, cities and special districts; the state itself levies none. Tax Foundation figures drawn from Census data put Florida property taxes at 0.78% of owner-occupied home value in 2024, 27th among the states. That average blends long-time owners protected by Save Our Homes with recent buyers, who are taxed on something close to the purchase price and so pay a noticeably higher share of their home's value. (Tax Foundation, Property Taxes by State and County, 2026 (comparative figures from Census ACS data))

The homestead exemption is available on a permanent residence owned and occupied on January 1. The first $25,000 of assessed value is exempt from all property taxes, including school taxes. A second exemption applies to assessed value above $50,000 and to non-school taxes only; it was $25,000 until 2024, has been indexed to inflation since, and is $26,411 for 2026. The application (Form DR-501) goes to the county property appraiser by March 1. (Florida Department of Revenue, PT-113: Property Tax Information for Homestead Exemption)

Save Our Homes limits how fast a homestead's assessed value can rise. Starting the year after the exemption is first granted, the increase each year cannot exceed 3% or the change in the Consumer Price Index, whichever is lower; for 2026 the cap is 2.7%. When the home is sold, the assessment resets to market value for the buyer. Second homes and rentals get a weaker cap of 10% a year, which does not apply to school taxes. (Florida Statutes 193.155: Homestead assessments (Save Our Homes cap and portability))

On November 3, 2026, voters approved Amendment 3, the property tax measure the Legislature put on the ballot as CS/HJR 1-F. The Division of Elections' unofficial returns show 61.98% in favor; 60% was required. The results had not been certified as of this review. (Florida Division of Elections, Florida Election Watch: constitutional amendments, November 3, 2026 general election (unofficial returns))

The amendment takes effect January 1, 2027 and will first appear on 2027 tax bills. The homestead exemption for non-school levies rises to $150,000 of assessed value in 2027 and $250,000 in 2028, and the $250,000 is indexed to inflation from 2029. The $25,000 exemption from school taxes is unchanged, as are Save Our Homes and portability. For non-school levies, the cap on yearly assessment increases for non-homestead property drops from 10% to 5%. (Florida Legislature, CS/HJR 1-F (2026 Special Session F), enrolled text: amendment on homestead exemptions and assessment limits)

Amendment 3 treats newcomers differently. A homeowner who had no permanent residence in Florida on December 31, 2026 is exempt on $25,000 of assessed value for school taxes and $50,000 for other taxes, and moves to the larger exemption beginning with the fifth year of exemption. From 2030 a county or city may shorten that five-year requirement for its own taxes by a two-thirds vote of its governing body. The Legislature still has to pass the general law that administers these rules. (Florida Legislature, CS/HJR 1-F (2026 Special Session F), enrolled text: amendment on homestead exemptions and assessment limits)

Insurance belongs in the same budget line. The Office of Insurance Regulation reports an average admitted-market homeowner's premium of $3,736 including wind coverage ($2,124 excluding wind), in market data dated October 2026. Coastal counties run well above the average, and flood insurance is separate. (Florida Office of Insurance Regulation: Property insurance market overview)

Florida's general state sales tax rate is 6%. Most counties add a discretionary sales surtax, which applies only to the first $5,000 of the price of any single item, so the surtax on a car or boat is limited. (Florida Department of Revenue: Sales and use tax; discretionary sales surtax)

The Tax Foundation puts the average combined state and local rate at 6.98% as of January 2026, 28th in the country. (Tax Foundation, State and Local Sales Tax Rates, 2026 (comparative figures))

Groceries (food products for human consumption) are exempt, as are prescription medicines and common household remedies. Restaurant meals and most other goods are taxed. (Florida Statutes 212.08: Sales tax exemptions (groceries, medical))

Florida has no inheritance tax and no estate tax. The constitution limits any estate tax to the amount of a federal credit for state death taxes, and that credit ended for deaths after December 31, 2004. Since July 1, 2023, personal representatives no longer even file an affidavit that no Florida estate tax is due. (Florida Department of Revenue: Florida estate tax)

Florida residency does not shield property located elsewhere. A house kept in a state with its own estate tax, such as New York or Massachusetts, can be taxed by that state at the owner's death, and an estate can face a claim from the former state if the move to Florida was not clearly completed. (Florida Department of Revenue: Florida estate tax)

The federal estate tax applies in every state. The estate tax calculator estimates both the federal tax and any state tax.

Amendment 3, approved by voters on November 3, 2026, raises the non-school homestead exemption to $150,000 for 2027 and $250,000 for 2028, lowers the non-homestead assessment cap from 10% to 5%, restricts how counties and cities may use property tax revenue, and makes people who had no permanent Florida residence on December 31, 2026 wait until their fifth year of exemption for the larger amount. Results were unofficial as of this review. (Florida Legislature, CS/HJR 1-F (2026 Special Session F), enrolled text: amendment on homestead exemptions and assessment limits)

The second homestead exemption, indexed to inflation since 2025, is $26,411 for 2026, up from $25,722 in 2025. It is due to be replaced by the larger Amendment 3 exemption from 2027. (Florida Department of Revenue, 2026 property tax exemption table (second homestead exemption of $26,411))

The Save Our Homes cap for 2026 is 2.7%, because the Consumer Price Index change was below the 3% ceiling. It was 2.9% for 2025. (Florida Department of Revenue: Save Our Homes annual increase (2.7% cap for 2026))

The household income limit for the local-option senior exemptions is $38,686 for 2026, up from $37,694 for 2025. (Florida Department of Revenue: Two additional homestead exemptions for persons 65 and older (2026 income limitation of $38,686))

The Office of Insurance Regulation reports that recent rate filings from homeowners' insurers have averaged small decreases, after several years of steep increases. (Florida Office of Insurance Regulation: Property insurance market overview)

With no income tax, Florida has no income-tax residency test of its own. The questions that matter are whether the former state still considers someone a resident, and whether the Florida home qualifies for the homestead exemption, which requires permanent residence there on January 1. (Florida Department of Revenue, PT-113: Property Tax Information for Homestead Exemption)

Florida law lets a person record a sworn Declaration of Domicile with the clerk of the circuit court in the county where they live, stating that the Florida home is their permanent or predominant home. Property appraisers also look for a Florida driver license, vehicle registration, voter registration, the address on federal tax returns and proof that a prior residence elsewhere has ended. (Florida Statutes 222.17: Manifesting and evidencing domicile in Florida)

The former state applies its own rules, and high-tax states audit departures. New York, for example, continues to treat a person as a resident if they keep a permanent place of abode there and spend 184 days or more in the state, wherever they claim domicile. A part-year return is normally due in the old state for the year of the move. (NYS Department of Taxation and Finance: Income tax definitions (resident, permanent place of abode))

After a genuine move, the former state can no longer tax pensions, IRA distributions or 401(k) income, because 4 U.S.C. 114 bars states from taxing the retirement income of non-residents. It can still tax income that arises there: rent from property in the state, gain on selling that property, wages for work performed there and income from a business operating there. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)