Florida: No State Income Tax Explained
Quick Answer
Florida has no state income tax on individuals, meaning your paycheck is only reduced by federal taxes and FICA. Combined with moderate property taxes (average 0.8%) and a 6% sales tax, Florida offers one of the lowest overall tax burdens in the country. It is the most popular destination for people relocating from high-tax states like New York and California.
How Much You Save in Florida
Compared to high-tax states, the income tax savings in Florida are substantial:
| Income | Savings vs California | Savings vs New York | Savings vs New Jersey |
|---|---|---|---|
| $60,000 | ~$2,100 | ~$2,800 | ~$2,000 |
| $85,000 | ~$3,600 | ~$4,100 | ~$3,500 |
| $120,000 | ~$6,300 | ~$6,200 | ~$5,200 |
| $200,000 | ~$13,800 | ~$12,000 | ~$10,500 |
At $120,000, moving from New York to Florida saves over $500/month in state income tax alone. See your specific numbers with the relocation tool.
Real Example With Actual Numbers
Michelle earns $78,000 in Miami, Florida. She is single.
| Tax | Annual Amount | Per Biweekly Paycheck |
|---|---|---|
| Federal income tax | $8,580 | $330.00 |
| Social Security (6.2%) | $4,836 | $186.00 |
| Medicare (1.45%) | $1,131 | $43.50 |
| Florida state tax | $0 | $0 |
| Total deducted | $14,547 | $559.50 |
| Take-home pay | $63,453 | $2,440.50 |
Michelle keeps about 81.3% of her gross pay — one of the highest take-home percentages possible at this income level. Compare your state at the SalaryHog calculator.
Florida vs Texas: The Two Most Popular No-Tax States
| Factor | Florida | Texas |
|---|---|---|
| Income tax | 0% | 0% |
| Sales tax (state) | 6.0% | 6.25% |
| Sales tax (max with local) | 7.5% | 8.25% |
| Avg property tax | 0.80% | 1.60% |
| Estate tax | None | None |
| Corporate income tax | 5.5% | None |
| Homestead exemption | Up to $50,000 | Yes, but smaller |
For homeowners, Florida is often the better deal. A $400,000 home in Florida costs about $3,200/year in property tax vs $6,400 in Texas. That $3,200 difference can offset many other cost-of-living factors.
What Florida Residents Pay Instead
Sales Tax
Florida's 6% state sales tax (plus up to 1.5% local surtax) applies to most purchases. Groceries are exempt. On $35,000 in annual taxable spending, that is about $2,450 in sales tax.
Property Tax
Florida's average effective rate is 0.80%, but this varies by county:
| County | Effective Rate | Tax on $400K Home |
|---|---|---|
| Miami-Dade | 0.86% | $3,440 |
| Broward (Ft. Lauderdale) | 0.93% | $3,720 |
| Orange (Orlando) | 0.85% | $3,400 |
| Hillsborough (Tampa) | 0.92% | $3,680 |
| Duval (Jacksonville) | 0.82% | $3,280 |
Florida's generous homestead exemption (up to $50,000 off assessed value) and Save Our Homes cap (3% annual increase limit) help keep property taxes low for long-term residents.
Insurance
Florida homeowners face high insurance costs, especially in hurricane-prone areas. This is a significant cost that partially offsets tax savings.
Who Benefits Most from Florida
- High earners: No ceiling on income tax savings
- Retirees: No tax on Social Security, pensions, 401(k) distributions, or IRA withdrawals. See taxes in retirement
- Homeowners: Low property tax rate with strong homestead protections
- Remote workers: Keep a high salary from a high-tax state employer while paying zero state tax
- Business owners: No personal income tax on self-employment income
Considering a Move to Florida?
Use the relocation tool to compare your current state to Florida with your actual salary. The SalaryHog calculator shows your complete take-home pay for Florida, breaking down every tax so you can see exactly what you keep.