Florida Tax Calculator 2026

Florida Income Tax: A Tax-Free Paradise

Florida is one of seven US states with no state personal income tax. This has been a cornerstone of Florida's economic policy for decades and is explicitly prohibited by the Florida Constitution (Article VII, Section 5). Any attempt to impose an income tax would require a constitutional amendment approved by voters.

The absence of income tax is a primary driver of Florida's massive population growth. The state has consistently been one of the top destinations for domestic migration, attracting retirees, remote workers, and businesses relocating from high-tax states like New York, California, and New Jersey.

How Florida Funds Government

Florida relies on several revenue sources in lieu of income tax:

• Sales Tax — 6% state rate (avg 7.05% combined with local) is the largest revenue source
• Tourism Taxes — Tourist development taxes (hotel/resort taxes) ranging from 2-6% depending on county
• Property Tax — Effective rate of ~0.86%, moderate compared to other no-income-tax states
• Corporate Income Tax — 5.5% on corporate income (with $50,000 exemption)
• Documentary Stamp Tax — Tax on real estate transactions and certain documents

Florida Sales Tax

Florida's state sales tax rate is 6.00%. Counties can levy a discretionary surtax up to 1.5%, bringing combined rates typically between 6.5% and 7.5%. The statewide average combined rate is approximately 7.05%.

Florida Sales Tax Exemptions

• Groceries — Exempt from state and local sales tax
• Prescription drugs — Exempt
• Clothing — Taxable at the full rate (exempt during Back-to-School and Disaster Preparedness tax holidays)
• Residential rent — Subject to sales tax (rare among states), though many counties have reduced rates

Florida Property Tax

Florida's effective property tax rate is approximately 0.86%, moderate by national standards and significantly lower than other no-income-tax states like Texas (1.60%) or New Hampshire (1.93%).

Florida Homestead Exemption

Florida offers one of the most generous homestead exemptions in the nation:

• Standard Exemption — Up to $50,000 off assessed value ($25,000 applies to all taxes; additional $25,000 applies to non-school taxes on value between $50,000 and $75,000)
• Save Our Homes (SOH) — Limits annual assessment increases to 3% or the CPI, whichever is lower. This is similar to California's Proposition 13 but slightly more generous on the assessment cap.
• Portability — You can transfer up to $500,000 of accumulated SOH savings to a new homestead in Florida.
• Senior Exemption — Additional exemption for seniors 65+ with household income under $36,614 (varies by county).

Why Retirees Love Florida

Florida is the top retirement destination in the US for several tax-related reasons:

• No income tax on Social Security, pensions, or retirement distributions
• No estate tax or inheritance tax (Florida repealed its estate tax)
• Generous homestead exemption reduces property tax significantly
• Homestead protection — Florida law protects the homestead from most creditors
• Warm climate reduces heating costs and appeals to retirees seeking year-round outdoor activities

Florida vs. Neighboring States

• Georgia — Has 5.49% flat income tax, similar sales tax (~7.38%), lower property tax (0.83%). Florida's no-income-tax advantage is significant for higher earners.
• Alabama — Has income tax (2%-5%), higher combined sales tax (~9.27%), very low property tax (0.39%).
• Texas — Both have no income tax. Texas has higher property tax (1.60% vs 0.86%) and higher sales tax (8.20% vs 7.05%), making Florida the lower-tax option overall for homeowners.