Florida vs Texas Taxes
Both states have no state income tax — so for W-2 earners the paycheck math is identical. The real differences are property tax, sales tax, and homestead caps. For most homeowners, Florida wins.
The headline answer
For a W-2 employee, your paycheck is exactly the same in Florida and Texas at the same gross salary. Both states withhold only federal income tax + FICA. The differences appear when you buy property and when you spend money.
Side-by-side
| Tax | Florida | Texas | Winner |
|---|---|---|---|
| State income tax | 0% | 0% | Tie |
| Avg effective property tax | ~0.83% | ~1.60% | Florida |
| Homestead assessment cap | 3% / yr (Save Our Homes) | 10% / yr | Florida |
| State sales tax | 6.0% | 6.25% | Florida |
| Combined sales (typical) | ~7.0% | ~8.2% | Florida |
| Estate tax | None | None | Tie |
| Inheritance tax | None | None | Tie |
| Retirement income tax | None | None | Tie |
Property tax is the deciding factor
Texas has one of the highest effective property tax rates in the US (~1.6%) because the state has no income tax and funds schools and local government almost entirely through property tax. Florida runs at roughly half that rate (~0.83%) and adds three layers of homeowner protection.
For a $500,000 home, that's a $4,000-$5,000/year difference in property tax before exemptions — meaningful enough to dominate any other tax difference for typical retirees and homeowners.
Homestead caps: 3% vs 10%
Both states cap annual assessed-value increases on a primary residence, but Florida's 3% cap is materially better than Texas's 10% cap. In a fast-appreciating market, Florida homesteads diverge from market value much more slowly — producing larger long-term tax savings.
Florida also offers portability (up to $500,000 of accumulated cap savings transferable to a new in-state home). Texas does not have a portability equivalent.
When Texas might still win
- · No hurricane insurance premium. Florida homeowners insurance has risen sharply post-2022; Texas premiums are lower in most regions. This can offset Florida's property tax advantage in coastal counties.
- · Tech salaries in Austin / Dallas. Tech compensation in Austin metro is meaningfully above most Florida metros; pre-tax dollars can outweigh post-tax efficiency.
- · Lower entry housing. Median home prices outside Austin/Dallas are below most Florida metros — for first-time buyers, that's the bigger lever.
The W-2 paycheck answer
If your decision is purely about take-home pay on a remote-work salary, Florida and Texas are functionally identical. Compute it with the calculator below and the number doesn't move when you change states between the two.