Florida has no state income tax on individuals. The Florida Constitution sets the ceiling at zero, and changing that would take a statewide vote, so wages, investment gains, retirement distributions, and Social Security benefits are all free of state-level income tax for Florida residents. You still owe federal tax, and Florida makes up the revenue through sales tax, property tax, and other fees, but eliminating one entire layer of income taxation is the reason so many people relocate here.
What the Zero Rate Covers
Article VII, Section 5 of the Florida Constitution ties any state income tax on individuals to amounts creditable against federal tax. Because federal law offers no such credit, the effective ceiling is nothing.1FSU Law Library. Florida Constitutional Amendments of 1971 A statute could not raise it; only Florida voters could.
The exemption reaches every form of personal income:
- Wages, salaries, tips, bonuses, and self-employment earnings
- Interest, dividends, and capital gains
- Pension distributions, 401(k) and IRA withdrawals, and Social Security benefits
A retiree drawing a $100,000 pension in California or New York would owe state income tax on that distribution. The same retiree in Florida owes nothing at the state level. The same constitutional provision blocks any state-level estate tax or inheritance tax,1FSU Law Library. Florida Constitutional Amendments of 1971 which matters because roughly a dozen states impose their own estate tax with exemption thresholds far below the federal level. Florida adds no such layer. Federal estate tax still applies above the federal exemption, which is $15,000,000 per individual for 2026.
Federal Tax Still Applies
Florida residency changes nothing about your federal return. You file with the IRS and pay at the same rates as taxpayers in any other state. For 2026, single filers face these brackets:2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- 10% on income up to $12,400 ($24,800 joint)
- 12% from $12,400 to $50,400 ($24,800 to $100,800 joint)
- 22% from $50,400 to $105,700 ($100,800 to $211,400 joint)
- 24% from $105,700 to $201,775 ($211,400 to $403,550 joint)
- 32% from $201,775 to $256,225 ($403,550 to $512,450 joint)
- 35% from $256,225 to $640,600 ($512,450 to $768,700 joint)
- 37% above $640,600 ($768,700 joint)
Self-employed residents also owe federal self-employment tax of 15.3% on net earnings: 12.4% for Social Security on the first $184,500 in 2026 and 2.9% for Medicare on all net earnings.3Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)4Social Security Administration. Contribution and Benefit Base An extra 0.9% Medicare surtax applies once earnings exceed $200,000 for single filers or $250,000 for joint filers. What Florida strips out is the state layer that would sit on top of all of this in a place like California (rates up to 13.3%) or New Jersey (up to 10.75%).
How Florida Raises Revenue Instead
Without an income tax, Florida leans on consumption and property. You’re taxed on what you spend and what you own.
Sales Tax
The state sales tax is 6% on most goods and many services.5Florida Dept. of Revenue. Florida Sales and Use Tax Counties add a discretionary surtax, pushing combined rates as high as 8% in some areas. Groceries that aren’t prepared food, prescription drugs, and a handful of other categories are exempt.
Documentary Stamp Tax
Real estate transfers carry a documentary stamp tax of $0.70 per $100 of the sale price in every county except Miami-Dade, which charges $0.60 per $100 plus a $0.45 per $100 surtax on most transfers (single-family homes are exempt from the surtax).6Florida Dept. of Revenue. Documentary Stamp Tax On a $500,000 home purchase outside Miami-Dade, that comes to $3,500 at closing.
Property Tax and the Homestead Exemption
Property taxes are assessed by counties and municipalities, not the state, and rates vary widely by location. For many Florida homeowners, this is the largest recurring state or local tax bill they pay. Two protections keep it in check once Florida is your permanent home.
If you hold legal title to a Florida property and make it your permanent residence as of January 1, you can claim a homestead exemption that reduces taxable value by up to $50,000. The first $25,000 applies to all local taxes including school district levies; the additional $25,000 applies to assessed value above $50,000 and covers everything except school district taxes.7Florida Senate. Florida Statutes 196.031 – Exemption of Homesteads Apply by March 1 of the tax year.
The Save Our Homes cap then limits annual increases in your assessed value to 3% or the rate of inflation, whichever is lower.8Florida Department of Revenue. Save Our Homes Assessment Limitation and Portability Transfer In a market where values climb 8% or 10% a year, the assessed value drifts steadily below market value and your tax bill stays manageable. If you sell and buy another Florida home, portability lets you carry the accumulated difference to the new property.
Business Income
C-corporations doing business in Florida owe a 5.5% corporate income tax on net income, with a $50,000 exemption so only net income above that threshold is taxed.9Florida Department of Revenue. Corporate Income Tax10Florida Department of Revenue. Florida Tax and Interest Rates
S-corporations, partnerships, LLCs taxed as partnerships, and sole proprietorships generally don’t owe Florida’s corporate income tax. Their income flows through to individual owners, who then benefit from the personal income tax exemption.9Florida Department of Revenue. Corporate Income Tax One exception: S-corporations that owe federal income tax at the entity level (reported on Line 23c of Federal Form 1120-S) also owe Florida corporate tax on that same income.
Establishing Legal Domicile
Moving to Florida doesn’t automatically give you the tax benefits. You need to establish legal domicile, meaning the place you intend to make your permanent home. This matters most if you’re leaving a state that taxes income, because that state may keep taxing you if your move looks incomplete.
Florida law lets you file a sworn Declaration of Domicile with the Clerk of the Circuit Court in your county, formally declaring your intent to make Florida your permanent home.11Justia. Florida Code 222.17 – Manifesting and Evidencing Domicile in Florida Filing isn’t required, but it creates a dated official record if your former state challenges the move.
You must obtain a Florida driver’s license within 30 days of establishing residency, using a deed, lease, or utility bill as proof of address.12Florida Department of Highway Safety and Motor Vehicles. New Resident – Welcome to Florida Registering to vote in Florida reinforces intent. Then sever ties with your old state: update estate planning documents, move banking and investment accounts to Florida addresses, and surrender the old driver’s license. If you keep a furnished home in your former state that’s available for your use, you’ve handed auditors their strongest argument that you never really left.
Surviving a Former-State Audit
High-tax states, particularly New York and California, actively audit taxpayers who claim to have moved to no-tax states. If your income was substantial before the move, expect scrutiny. The burden of proof falls on you.
Auditors examine several categories of evidence:
- Whether you still own or maintain a usable home in the former state
- How many days you spend in each state
- Active ties like driver’s license, voter registration, bank accounts, and club memberships
- Whether you continue to work in, maintain an office in, or serve clients based in the former state
- Whether your spouse and children still live there, especially if kids are enrolled in school
The often-repeated “183 days in Florida” rule is not a Florida requirement. Florida has no income tax to enforce. The 183-day threshold matters because of the former state’s residency tests. New York treats anyone who keeps a permanent place of abode in the state and spends 184 or more days there as a statutory resident, regardless of claimed domicile.13New York State Department of Taxation and Finance. Frequently Asked Questions About Filing Requirements, Residency California presumes continued residency until you show both absence from California and establishment of domicile elsewhere, and its Franchise Tax Board runs a dedicated audit team for high-income departure cases.
Spend a clear majority of the year in Florida, minimize days in any state that might claim you, and keep a travel log with receipts. Auditors count days precisely, and a vague recollection will not hold up.