Florida is one of the most tax-friendly states for older workers and retirees. It’s one of just seven states that don’t collect personal income tax, allowing residents to benefit from tax-free pensions and retirement pay, along with no state taxes on Social Security or investment income. Florida also doesn’t have an inheritance or estate tax.The big picture:Income tax: 0 percentThere is no personal income tax at the state or local level in Florida.Property tax: 0.91 percent of a home’s assessed value (average)Property taxes vary widely by county across Florida, with an average rate of 0.91 percent of a home’s assessed value in 2021, according to the Tax Foundation.Sales tax: 7 percent (average combined state and local)The state sales and use tax rate is 6 percent, although some goods and services are exempt, such as groceries and prescription medicine. Counties are allowed to add a discretionary sales surtax, with current rates ranging from 0 percent to 1.5 percent. The average local s...
