The study, which looked only at taxes, praised Fla.’s lack of income tax, “reasonable” property tax, homestead exemption and “average” state and local tax rates.
- State income tax: None
- Average state and local sales tax: 7.05%
- Average property tax: $1,041 per $100,000 in home value
- Estate tax/Inheritance tax: No/No
The Sunshine State is very popular with retirees, not just because of its forgiving climate but also because it has no state income tax. Sales taxes, though, can go as high as 8.5%, depending on where you live. The average combined state and local tax rate is 7.05%, which is about average.
Property taxes are reasonable in Florida. The average annual property tax on a $400,000 home in the state is $4,166, which is also average. Florida residents ages 65 and older who meet certain income limits can also receive an extra homestead exemption of up to $50,000 from some city and county governments and/or an exemption equal to the assessed value of the property, as long as the real estate has a fair market value of less than $250,000, the homeowner has maintained permanent residence at the location for at least 25 years, and household income does not exceed $30,174 in 2019. Any widow or widower who is a Florida resident may claim an additional $500 exemption as well.
You don’t need to worry about estate or inheritance taxes in Florida, either.
© 2019 The Kiplinger Washington Editors, Rocky Mengle
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