Florida Tax Rates 2026
Income tax, property tax, and estimated take-home pay for Florida residents.
Income Tax in Florida
Florida is one of the few states with no state income tax. Residents keep more of their paycheck, though the state may make up revenue through higher sales tax, property tax, or other fees.
| Tax Component | Rate / Amount | On $75K Salary |
|---|---|---|
| Federal Income Tax | 10-37% (marginal) | $10,238 |
| Florida State Tax | 0% | $0 |
| FICA (SS + Medicare) | 7.65% | $5,738 |
| Total Tax Burden | $15,976 | |
| Annual Take-Home | $59,024 |
Property Tax in Florida
Florida's effective property tax rate is 0.89%, which is below the national average of 1.07%. On the national median home value of $405,300, Florida homeowners pay approximately $3,607 per year ($301/month) in property taxes.
Property tax is deductible on your federal return if you itemize, but the SALT deduction is capped at $10,000 total (combined state income tax + property tax). In Florida, a $75K earner paying $3,607 in combined state/local taxes stays within the $10,000 SALT cap.
Cost of Living Considerations
Tax rates are only one piece of the puzzle. States without income tax often compensate with higher sales taxes, property taxes, or fees. When comparing Florida to other states, also consider housing costs, healthcare expenses, grocery prices, and transportation costs. Use our calculators below to model your specific situation.
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Sales Tax in Florida
Florida has a state sales tax rate of 6.0%. Local jurisdictions may add additional sales tax on top of the state rate. On a $35,000 vehicle purchase, the state sales tax alone adds $2100. Groceries, prescription medications, and certain essentials may be exempt or taxed at a reduced rate depending on Florida law. When budgeting for large purchases, always factor in the combined state and local rate in your area.
Tax Planning Tips for Florida Residents
Maximize your no-tax advantage. Since Florida has no state income tax, Roth IRA conversions are especially powerful here — you pay federal tax on the conversion but no state tax, and all future withdrawals are completely tax-free at both levels.
Watch property taxes. With no income tax revenue, Florida relies more heavily on property taxes and sales taxes. Budget accordingly when purchasing a home, and explore homestead exemptions that may reduce your assessed value.
Remote work advantage. If you work remotely for a company in a high-tax state, living in Florida means you typically pay taxes based on where you live — saving you the state income tax entirely. Verify your specific situation with a tax professional, as some states have reciprocity agreements or "convenience of employer" rules.
Who Benefits from Living in Florida?
High earners benefit most from Florida — a $200,000 earner saves $10,000-$20,000+ annually compared to living in California or New York. The savings compound dramatically over a career.
Retirees with large portfolios — 401(k) withdrawals, pension income, and Social Security are all free from state taxation, potentially saving tens of thousands over retirement.
Self-employed individuals — freelancers and business owners already face the 15.3% self-employment tax; eliminating state income tax provides meaningful relief.
File your state taxes online quickly and accurately. Easy step-by-step process with guaranteed accuracy.
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Florida Tax Reality 2026 — Zero Income Tax, $51,411 Homestead Exemption, but $8,300 Avg Insurance Premium DEEP DIVE
▾Zero State Income Tax — The Math That Drives the NY-CA-IL Exodus
Florida is one of 9 US states with no state individual income tax. There is no tax on wages, salaries, capital gains, dividends, interest, IRA distributions, pension income, or Social Security benefits at the state level. Florida's tax system ranks 5th overall on the 2026 State Tax Competitiveness Index (Tax Foundation). The 2026 budget contains no proposal to add an income tax, and the FL constitution requires a 60% voter-approved amendment to do so.
- NYC household: 6.85% NY state + 3.876% NYC = ~10.7% combined → $53,500/yr in state+city tax
- CA Bay Area: 9.3% CA marginal (entering 10.3% bracket) → ~$45,000-$48,000/yr in state tax
- IL Chicago: 4.95% IL flat → ~$24,750/yr in state tax
- FL household: $0/yr in state tax
The savings get reinvested into Florida property: median home values in Miami-Dade ($547K), Broward ($472K), and Palm Beach ($514K) have absorbed much of the migration premium since 2020. The trade-off — covered in Sections 2-4 below — is that Florida's property tax, sales tax, and especially homeowners insurance now form the dominant tax burden for FL residents.
Tax Foundation 2026 State Tax Competitiveness Index. FL constitutional prohibition on income tax per Article VII § 5. Domicile rules per Florida Statutes § 196.012 and Florida DOR Form DR-501.
Save Our Homes — The 3% Cap That Saves Long-Term Owners Tens of Thousands
Florida's Save Our Homes (SOH) constitutional amendment (Article VII § 4(d)) is the most generous homestead protection in the United States. Once you receive homestead exemption on your Florida primary residence, the property appraiser can only increase your assessed value by 3% per year or the CPI inflation rate, whichever is lower. For 2026, CPI is 2.9%, so the SOH cap is 2.7%.
This creates a wide gap between market value and assessed value for long-term owners. A homeowner who bought a Tampa house for $250,000 in 2010 may today see a market value of $650,000, but the SOH-protected assessed value might be only $375,000 — a $275,000 SOH benefit translating to roughly $5,000-$7,000 per year in property tax savings.
| Layer | Amount (2026) | Applies To |
|---|---|---|
| Base homestead (Tier 1) | $25,000 | All taxes including school district |
| Additional homestead (Tier 2, Amendment 5 inflation-adjusted) | $26,411 | Non-school taxes only (county, municipal, special district) |
| Total 2026 homestead exemption | $51,411 | Applied to assessed values $50,001-$76,411 |
| Save Our Homes cap | 3% or CPI (lower) | Annual assessed-value growth, indefinite |
| SOH portability transfer | Up to $500,000 of accumulated benefit | Transferable to new FL primary residence within 3 years |
| Senior additional exemption (age 65+, low-income) | Up to $50,000 | Counties may adopt; income limit ~$37,694 for 2026 |
| Senior 25-year longevity exemption | Full property value | Age 65+, 25+ years in residence, home ≤$250K, income ≤$37,694 |
Save Our Homes per Florida Constitution Art. VII § 4(d); homestead exemption per § 4(a) and Florida Statutes § 196.031. Amendment 5 (2024) added inflation indexing on the second tier. Portability per Florida Statutes § 193.155(8); file Form DR-501T within 3 years.
The Property Insurance Crisis — Why $8,300/yr Premiums Are the Real Florida Tax
For most Florida homeowners in 2026, the homeowners insurance premium has overtaken the property tax bill as the largest annual cost of homeownership. Florida's average annual homeowner premium is roughly $8,300 (Insurify 2026 report) — about 3-4× the national average of $1,900. Coastal counties (Miami-Dade, Broward, Lee, Collier, Pinellas) routinely see $9,000-$18,000/yr on standard single-family homes. The state is the most expensive in America for property insurance, and there is no state income tax savings that compensates for this at most income levels.
The 2022-2023 legislative reforms (ending mandatory insurer-paid attorney fees, restricting Assignment of Benefits, tightening claims timelines) have begun to stabilize the market by 2026 — Citizens Property Insurance announced an average 8.7% rate reduction effective June 1, 2026, and 17 new insurers have entered Florida since 2023. But the average homeowner still has not seen meaningful relief because:
- Reinsurance costs (the insurance insurers buy) remain elevated due to Florida's structural hurricane exposure
- Roofs over 15 years old are routinely declined or quoted as if uninsurable
- 4-point inspections and wind mitigation reports are required for most policies and frequently disqualify older homes
- NFIP flood insurance under Risk Rating 2.0 has separately tripled or quadrupled for many coastal properties — premiums of $3,000-$8,000/yr where they were $800-$1,200 pre-2022
| County | Median Home | Property Tax (eff) | Typical HO Insurance 2026 | Insurance ÷ Tax |
|---|---|---|---|---|
| Miami-Dade | $547K | $4,141 (0.76%) | $10,000-$15,000 | ~2.4×-3.6× |
| Broward | $472K | $4,423 (0.94%) | $8,500-$12,000 | ~1.9×-2.7× |
| Palm Beach | $514K | $4,240 (0.83%) | $7,500-$11,000 | ~1.8×-2.6× |
| Hillsborough (Tampa) | $420K | $3,453 (0.82%) | $6,000-$9,000 | ~1.7×-2.6× |
| Orange (Orlando) | $432K | $3,227 (0.75%) | $5,500-$8,000 | ~1.7×-2.5× |
| Pinellas (St. Pete) | $398K | $2,655 (0.67%) | $7,500-$11,000 (coastal) | ~2.8×-4.1× |
Insurify 2026 Insuring the American Homeowner Report (avg $8,292 in 2025; +2% projected for 2026); Florida OIR rate filings; Citizens Property Insurance June 2026 rate reduction announcement (8.7% avg cut). Tax Foundation 2026 effective property tax rates. NFIP Risk Rating 2.0 pricing methodology effective 2022.
2026 Florida Property Tax Reform — The Most Aggressive Proposals in Modern State History
The 2026 Florida legislative session produced over a dozen property tax reform proposals, including the most aggressive constitutional amendments in modern Florida history. The Governor has signaled support for major homestead relief but prefers a single unified amendment on the November 2026 ballot rather than multiple overlapping proposals. Whether any of the below appears on the ballot — and which version — is the dominant FL real estate question for the year.
| Bill | Proposal | Impact |
|---|---|---|
| HJR 201 | Eliminate ALL non-school property taxes on homestead immediately | ~50-65% reduction in typical homestead bill |
| HJR 203 | Phase out non-school homestead property taxes over 10 years | Same end state as HJR 201 by 2036 |
| HJR 207, 209, 205 | Tighten Save Our Homes cap, expand portability | Locks in long-term-owner protections |
| HJR 67 | Senior longevity full exemption expansion | Lower income limits removed for 25+ year owners |
| HJR 211 | Renovation exclusion (improvements not added to assessed value) | Removes disincentive to improve homes |
| SJR 270, 274, 278, 282 | Cap assessment increases for new buyers and small businesses | Limits the new-buyer trap |
| SB 286 | Statutory homestead expansion (no constitutional amendment needed) | Faster path; smaller magnitude |
Florida Legislature 2026 Regular Session bill tracker. HJR/SJR proposals require 60% voter approval to amend the FL Constitution. Statutory bills (SB 286) require simple legislative passage and Governor's signature. Status as of April 2026 — verify before relying.
Sales Tax 6% + Documentary Stamps + Tangible Personal Property — The Hidden Costs
Beyond income, property, and insurance, three additional Florida-specific tax facts shape your real cost of living and especially your real estate transaction costs:
- Sales tax: 6% state + 0%-1.5% county = 6.0%-7.5% combined (Tax Foundation 2026 average: 7.02%). Miami-Dade is 7.0%, Broward 7.0%, Hillsborough 7.5%, Orange 6.5%, Duval 7.5%. Groceries (food for home consumption), prescription medications, some batteries, bicycle helmets, and CO/smoke detectors are exempt. Restaurant meals, prepared foods, and most services are taxable.
- Documentary Stamp Tax on Deeds: $0.70 per $100 of consideration (Miami-Dade is $0.60). On a $500,000 home, that's $3,500 in deed stamps at closing — typically paid by the seller. Plus, on the buyer side: Documentary Stamp Tax on Mortgages of $0.35 per $100 + Intangible Tax of $2.00 per $1,000 on new mortgage principal. A $400,000 mortgage means roughly $2,200 in combined stamps and intangible tax at closing. Florida is one of the highest documentary-stamp-tax states in the country.
- Tangible Personal Property Tax (TPP) — businesses only: 1.5%-3% of assessed value on business equipment, furniture, computers. Each business location gets a $25,000 exemption. Does NOT apply to personal (non-business) property — your household furniture, vehicles, and tools are not taxed. Sole proprietors with home offices technically file a TPP return but typically owe $0 due to the exemption.
Florida sales tax per Florida Statutes § 212.05 (state); county discretionary surtaxes per § 212.055. Documentary stamps per § 201.02 (deeds), § 201.08 (mortgages); intangible tax per § 199.135. TPP per § 196.183. Combined sales tax avg 7.02% (Tax Foundation 2026).
Calculate your true Florida take-home — including factoring property tax, insurance, and sales tax — with the Take-Home Calculator, or save side-by-side state comparisons (FL vs NY/CA/IL) in a free FinCalcs account.