Florida Has No Income Tax: The Full 2026 Breakdown

Does Florida have a state income tax? No. Florida's constitution prohibits it. But that is only part of the tax picture. Here is what Florida residents actually pay in property tax, sales tax, and other costs.

Last reviewed April 2026. Sources: Florida Department of Revenue, Tax Foundation, BEA.

So What Do You Actually Pay in Florida?

Florida funds its government through sales taxes, property taxes, tourism levies, corporate income tax (yes, businesses pay 5.5%), documentary stamp taxes on real estate transactions, and federal transfers. The absence of a personal income tax is real and permanent, but it is not free money. Here is how it plays out for individual residents.

Property Tax in Florida

Florida's average effective property tax rate is 0.86%, below the national average of 0.99%. However, rates vary significantly by county. Miami-Dade and Broward are slightly above the state average while rural counties tend to be lower. Two major exemptions protect primary-residence owners:

• Homestead Exemption: Reduces assessed value by $25,000 for all property taxes, plus an additional $25,000 for all taxes except school district taxes. Total reduction up to $50,000 on assessed value.
• Save Our Homes (SOH) cap: Limits annual assessed value increases to 3% or the CPI, whichever is lower, for homesteaded properties. After years of low inflation, this cap has shielded long-term Florida homeowners from property tax spikes.
• Senior exemptions: Seniors aged 65+ with household income below $34,282 may qualify for an additional $50,000 exemption in some counties.

Sales Tax in Florida

Florida's state sales tax is 6%. Counties add a discretionary surtax of 0.5% to 1.5%, bringing the average combined rate to 7.02%. Critically, groceries and most food for home consumption are exempt from Florida sales tax, as are prescription medications. On $40,000 of annual taxable spending, you would pay roughly $2,808 in sales tax at the statewide average.

Other Taxes to Know

Cost of Living in Florida

Florida's overall cost of living index is 103.1, just 3% above the national average. But this average masks huge variation between coastal and inland areas. Miami and South Florida run 115 to 130 on the index. The Tampa-St. Pete area is around 100. Orlando is about 98. Inland and Panhandle areas can be 85 to 90.

Establishing Residency in Florida

If you are moving from a high-tax state (especially New York or California), documenting your Florida domicile properly is critical to avoid being taxed by your former state. Florida is a popular target for NY residency audits.

1. File a Declaration of Domicile with the circuit court clerk in your Florida county. This creates a public record of your intent. Cost is typically under $25.
2. Obtain a Florida driver's licence within 30 days of establishing Florida as your primary residence (Florida Statute 322.031).
3. Register your vehicle in Florida within 10 days of employment or 90 days of residency.
4. Register to vote in Florida (cancelling prior state registration).
5. Spend at least 183 days in Florida each calendar year. Keep records: phone location history, toll records, credit card receipts, medical appointments.
6. Apply for Homestead Exemption if you own a primary residence by March 1 of the tax year.
7. Update your estate documents to reference Florida domicile. Change your attorney, financial advisor mailing address, and club memberships to Florida addresses.
8. Sever ties with your former state. Selling a property, closing a safe-deposit box, cancelling club memberships, and removing your name from the voter rolls all reduce audit risk.

For a full checklist covering all 9 states, see our establishing residency guide.

Major Cities in Florida

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Sources: Florida Department of Revenue (floridarevenue.com), Tax Foundation, BEA Regional Price Parity 2024, Florida Statutes 196 (property tax exemptions), Florida Statutes 322 (driver's licence). Last reviewed April 2026. Not tax advice.