Does Florida tax Social Security benefits?

No. Florida does not tax Social Security benefits. Since Florida has no state income tax at all, your Social Security is 100% state-tax-free. However, your benefits may still be partially taxed at the federal level if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly).

Is Florida better than Texas for retirees?

Both states charge $0 state income tax on retirement income. The key differences: Florida has lower average property taxes (0.80% vs Texas 1.60%), a $50,000 homestead exemption, and Save Our Homes cap limiting assessment increases to 3%/year. Texas freezes school district taxes at 65 but has higher overall property tax rates. For most retirees, Florida's property tax advantage saves $2,000-4,000/year on a $300K home.

Why is Florida the #1 retirement destination?

Florida combines zero state income tax (on all sources), no estate/inheritance tax, a generous $50,000 homestead exemption, warm weather year-round, and no tax on Social Security, pensions, or 401(k) withdrawals. About 1 in 5 Florida residents is age 65 or older — the highest concentration of retirees in the nation.

Florida Retirement Tax Calculator 2026

Q: Is retirement income taxed in Florida?

No. Florida has no state income tax, so Social Security, pensions, 401(k) withdrawals, IRA distributions, and all other retirement income are completely tax-free at the state level. This applies to all Florida residents regardless of income amount.

Q: Does Florida have an estate or inheritance tax?

No. Florida has no estate tax and no inheritance tax. Combined with no income tax, this makes Florida one of the most tax-friendly states for retirees and their heirs. There is no state-level tax on wealth transfer at death.

Florida taxes NOTHING. $0 state tax on Social Security, pensions, 401(k), and all retirement income.

Enter your retirement income to see Florida state tax

Social Security (annual)

Annual Social Security benefit

Pension income

Annual pension income

401(k)/IRA withdrawals

Annual 401(k) or IRA distributions

Other income

Investment, rental, or other income

Filing status

Age

Your current age

—

How to Use This Calculator

Tab “Tax on My Retirement Income”

Enter your annual Social Security benefit, pension income, 401(k)/IRA withdrawals, other income, filing status, and age. The calculator shows your Florida state tax on each income type — which is $0 across the board. Florida has no state income tax on any income source, period.

Tab “What’s Exempt?”

A visual checklist of every retirement income type — Social Security, pensions, 401(k), IRA, military pay, investment income, annuities, and estate/inheritance — all marked exempt. Florida charges $0 state tax on every single one. The tab also explains why: Florida’s constitution prohibits a state income tax.

Tab “Compare States”

See your exact retirement income taxed across Florida ($0), Texas ($0), New York, California, and North Carolina. A bar chart shows the annual state tax difference. The comparison also highlights why Florida edges out Texas for most retirees: lower property taxes, a $50,000 homestead exemption, and the Save Our Homes assessment cap.

The Rules

Florida State Income Tax Rate: 0% on all income

Social Security: $0 state tax (no state income tax)
Pension Income: $0 state tax (all pensions exempt)
401(k) / IRA Withdrawals: $0 state tax
Investment Income: $0 state tax (interest, dividends, capital gains)
Military Retirement: $0 state tax
Annuity Income: $0 state tax

Estate Tax: None
Inheritance Tax: None

Legal basis: Article VII, Section 5, Florida Constitution prohibits a state personal income tax. This has been in effect since 1924.

Florida is one of only 9 states with no state income tax (along with Alaska, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming). Unlike some of these states which tax certain types of investment income, Florida taxes nothing at the state level.

Example

Robert — Retired Teacher, $65K Total Retirement Income, Single, Age 68

Social Security$30,000/yr

Teacher pension$20,000/yr

401(k) withdrawals$15,000/yr

Total retirement income$65,000/yr

Florida state tax on SS$0

Florida state tax on pension$0

Florida state tax on 401(k)$0

Total Florida state tax$0

Effective state tax rate0.0%

Robert keeps 100% of his $65,000 retirement income at the state level. If he lived in California instead, he would pay approximately $561 in state tax. In New York, about $260. In North Carolina, roughly $888. By living in Florida, Robert saves $561–$888 per year in state income tax alone — every single year of retirement.

Same $65K in Other States

State Tax Comparison — $65K Retirement Income (SS $30K + Pension $20K + 401k $15K)

Florida$0

Texas$0

New York~$260

California~$561

North Carolina~$888

While the income tax savings between FL and NY or CA may seem modest at $65K, the gap widens dramatically at higher income levels. A retiree with $150K in income would save $3,000–$6,000/year in state taxes by choosing Florida. Over a 20-year retirement, that is $60,000–$120,000 in cumulative savings — before considering property tax advantages.

Frequently Asked Questions

Is retirement income taxed in Florida?▼

No. Florida has no state income tax, meaning Social Security benefits, pensions, 401(k) withdrawals, IRA distributions, military retirement pay, annuity income, and investment income (interest, dividends, capital gains) are all completely exempt from state taxation. This applies regardless of your income amount, age, or filing status. The Florida Constitution prohibits a state personal income tax, so this is not a temporary exemption — it is a constitutional guarantee.

Does Florida have an estate or inheritance tax?▼

No. Florida has no estate tax and no inheritance tax. When a Florida resident passes away, there is no state-level tax on the transfer of assets to heirs. Combined with no income tax during your lifetime, this makes Florida one of the most favorable states for wealth preservation and transfer. Note that federal estate tax may still apply if your estate exceeds the federal exemption ($13.99 million per person in 2026).

Is Florida or Texas better for retirement taxes?▼

Both states charge $0 state income tax on all retirement income. The key differentiator is property taxes. Florida’s average effective property tax rate is about 0.80%, compared to Texas at 1.60%. Florida also offers a $50,000 homestead exemption (reducing your home’s taxable value) and the Save Our Homes cap, which limits annual assessment increases to 3% or the CPI, whichever is lower. Texas freezes school district taxes at age 65 but has much higher base rates. For a $300,000 home, a Florida retiree typically pays $2,000–$4,000 less per year in property taxes than a Texas retiree.

What is the Florida homestead exemption?▼

Florida’s homestead exemption reduces the taxable value of your primary residence by up to $50,000. The first $25,000 applies to all property taxes including school district taxes. The second $25,000 (on assessed value between $50,000 and $75,000) applies to non-school taxes only. For a home assessed at $300,000, the exemption saves approximately $750–$1,000 per year depending on local millage rates. You must be a permanent Florida resident and own the property as of January 1 to qualify.

Do I still owe federal tax on retirement income in Florida?▼

Yes. Florida’s $0 state tax does not affect your federal tax obligations. Social Security may be partially taxable at the federal level if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly). Pension income, 401(k)/IRA withdrawals, and investment income are generally subject to federal income tax. Moving to Florida eliminates state tax but does not change your federal tax liability.

Related Calculators

Embed This Calculator

Add the sum.money Florida Retirement Tax Calculator to your website. Free, responsive, always up to date.