Looking to settle down in sunny South Florida? If so, then good choice! I love Florida outside of summer and hurricanes. Anyway, if you’re going to settle down and retire in Florida, then you need to know how taxes impact retired folks.
I’ve done my best to cover everything I can about taxes in the state and I’ll be covering more states as well. But for now, if you’re looking to call Florida your retired land of the luxury living after finally calling work quits, then here’s what you need to know!
Florida State Tax Information For Retired Citizens
I’ll cover all the most important areas right here very quickly and let me know if you have any other questions about things. Let’s kick things off with personal income tax…
Personal Income Tax – Great news! There is no personal income tax that you’ll have to pay if you’re retired and also earning an income in the state. That means you will be exempt from standard deductions as well as personal exemptions due to there being no state income tax in Florida.
Sales Tax – Okay, so there is no skating by this one. You’ll be paying a 6.0% sales tax in the state of Florida. You’ll also have to factor in the local sales tax which is about 0.6% added on to your sales tax. There is no sales tax on food or non-prescription drugs, so you’re in the clear there.
But if you’re a smoker, I suggest you quit or get used to paying $1.34 per pack! Gas also has a tax of about $0.53 per gallon.
Estate Tax – Good news here, there’s no estate or inheritance tax that needs to be paid. So for those inheriting anything, this is a good thing.
Military Taxes – If you’re a retiree from the Military, then you will get some benefit of no state income tax, but you’ll be subject to taxes on assets such as stocks, bonds, or mutual funds. This can get complicated and I suggest you connect with a CPA in FL to fully understand the implications.
Retired Residents Tax – So, for those that are officially retired, here’s what you need to know. There is no income tax on your social security income. There is no state tax on it as well. There is no income or state tax on your pension income.
If you need more information, do yourself a favor and check out the official website or write the office for more information.
Website:
Floridarevenue.com
Official Address:
Florida Department of Revenue Taxpayer Services
1379 Blountstown Highway
Tallahassee, FL 32304-2716
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About Edwin Cannon
Edwin Cannon has spent his entire career in the financial industry and specializes in alternative investments and surviving marketing turbulence. He started My Retirement Paycheck to help educate consumers about retirement investment options that aren't typically introduced by advisors.