Florida Tax FAQ (2026)
Plain-English answers to the most common Florida tax questions for 2026 — paycheck math, residency rules, retirement, and relocation.
Does Florida have a state income tax?+
No. Florida is one of nine US states without a personal income tax. Florida residents pay only federal income tax, FICA (Social Security and Medicare), and any applicable Additional Medicare Tax.
How much do I save in Florida vs. high-tax states?+
Approximately: $5K/year vs. CA at $100K, $11.5K/year vs. NYC at $150K, $24K/year vs. NYC at $250K, $43K+ vs. CA at $500K, and $48K+ vs. NYC at $500K.
Are pensions and Social Security taxed in Florida?+
No. Florida applies no state tax to Social Security, pensions, IRA distributions, 401(k) withdrawals, or Roth distributions. Federal taxation is unchanged.
Is there a Florida estate or inheritance tax?+
No state-level estate or inheritance tax. Federal estate tax may apply at very high net worth.
Are capital gains taxed in Florida?+
Not at the state level. Federal long-term capital gains rates (0%, 15%, 20%) apply unchanged based on income.
How do I establish Florida residency?+
Spend 183+ days in Florida; obtain a Florida driver's license; register to vote in Florida; designate a Florida primary residence and file homestead; sever ties to prior state. See our residency guide for the full checklist.
Does Florida have a state sales tax?+
Yes — 6% state, plus 0.5%–1.5% county discretionary surtax. Most groceries and prescription drugs are exempt.
How does the Florida homestead exemption work?+
Removes up to $50,000 from assessed value of an owner-occupied primary residence. Activates the Save Our Homes 3% annual cap on assessed-value growth. File Form DR-501 with the county property appraiser by March 1.
What is Save Our Homes?+
A constitutional cap that limits annual increase in assessed value of a homesteaded primary residence to 3% (or CPI if lower). Market value can rise faster, but tax is calculated on the capped assessed value.
Is Florida property insurance really that expensive?+
Yes — among the highest in the US, particularly in coastal counties. Get real quotes for your specific address before assuming national averages apply. Premiums on a typical single-family home commonly run $3,000–$8,000+ per year.
Can I work remotely from Florida for an out-of-state employer?+
Yes — and Florida residency generally moves your wages out of the prior state's tax. Major exception: New York's 'convenience of the employer' rule taxes non-resident remote workers if the remote setup is for the employee's convenience rather than the employer's necessity.
Do I owe quarterly estimated taxes in Florida?+
Federal-only. Florida has no state income tax, so there are no Florida estimated tax payments. Federal estimates are due April 15, June 15, September 15, and January 15 (for the prior year's Q4).
Is Florida or Texas better for taxes?+
Both have zero state income tax. Florida property taxes are generally lower than Texas; Florida property insurance is generally higher than Texas. The federal-and-payroll math is identical in both.
How accurate is your calculator?+
Our calculator uses 2026 projected federal brackets and standard deductions. Final 2026 figures are published by the IRS in fall 2025. Estimates are typically within 1–2% of actual employer withholding for a typical W-2 employee with no unusual situations.