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Home›US›Texas vs Florida Tax Comparison

Texas vs Florida Tax Comparison

Both states have $0 income tax. The real difference is property tax, sales tax, and insurance. Enter your numbers.

Both states have $0 income tax — compare property tax + sales tax
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Market value of home you'd buy in either state
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Annual spending subject to sales tax (excludes groceries in TX)
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How to Use This Comparison Tool

Side-by-Side Tax Bill tab

Enter your home value and annual taxable spending. The calculator compares Texas vs Florida property tax and sales tax. Both states charge zero income tax, so the comparison focuses on the two taxes that actually differ: property tax (TX 1.60% vs FL 0.80%) and sales tax (TX 8.25% vs FL 6.98%).

Property Tax Deep Dive tab

See how homestead exemptions change the picture. Texas offers a $140,000 school-district exemption that reduces the taxable value for the school portion of your bill. Florida offers a $50,000 homestead exemption on the full assessed value, plus the Save Our Homes 3% cap that limits annual assessment increases regardless of market appreciation.

Total Cost with Insurance tab

Adds homeowners insurance to the comparison. Texas averages ~$4,000/year (hail, tornado risk). Florida averages ~$4,500/year (hurricane risk, volatile insurance market). This gives you the full annual housing cost picture beyond just taxes.

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The Formula

Property tax

Annual Property Tax = (Home Value - Homestead Exemption) x Effective Tax Rate

Texas effective rate: 1.60%. Florida effective rate: 0.80%. Texas homestead exemption ($140K) applies only to the school-district portion (~45% of the total bill). Florida homestead exemption ($50K) applies to the full assessed value.

Sales tax

Annual Sales Tax = Taxable Spending x Combined Sales Tax Rate

Texas combined: 8.25% (6.25% state + 2% local max). Florida combined: 6.98% (6% state + ~1% local average). Both states exempt groceries from sales tax.

Total annual housing cost

Total Cost = Property Tax + Sales Tax + Homeowners Insurance

This gives the full picture. Neither state charges income tax, so these three line items capture the key financial difference between living in Texas vs Florida.

Example

Maria -- $350,000 home, $25,000 annual taxable spending

Maria is a remote worker choosing between Austin, TX and Tampa, FL. She earns $120,000 and pays zero state income tax in either state.

Side-by-Side Tax Bill

TX property tax$5,600
FL property tax$2,800
TX sales tax$2,063
FL sales tax$1,745
FL annual savings$3,118

With Insurance

TX total (tax + insurance)$11,663
FL total (tax + insurance)$9,045
FL saves per month~$218

Maria chose Tampa. The $2,618 annual savings after insurance helped offset Florida's slightly higher home insurance cost. Over 10 years, she saves roughly $26,000 in taxes and insurance compared to Austin.

Texas vs Florida Tax Rates at a Glance (2026)

Category Texas Florida
State income tax 0% 0%
Effective property tax rate 1.60% 0.80%
Combined sales tax 8.25% 6.98%
Homestead exemption $140K (school only) $50K (full value)
Assessment cap 10%/yr (non-homestead) 3%/yr (Save Our Homes)
Avg. homeowners insurance ~$4,000/yr ~$4,500/yr
Groceries taxed? No No

Rates are 2026 averages. Actual rates vary by county. Sources: Texas Comptroller, Florida Department of Revenue, NAIC, Tax Foundation.

FAQ

Florida is cheaper for most homeowners. Neither state has income tax, but Texas property tax averages 1.60% vs Florida's 0.80%. On a $350,000 home with $25,000 in taxable spending, Florida saves roughly $3,118 per year in property and sales taxes combined.
Texas relies heavily on property tax to fund schools and local government because it has no state income tax. The effective rate averages 1.60%. Florida also has no income tax but supplements revenue with tourism taxes, so its property tax averages only 0.80%. Texas offers a $140,000 school-district homestead exemption to offset the higher rate.
Texas offers a $140,000 homestead exemption that applies only to the school-district portion of your property tax. Florida offers a $50,000 homestead exemption on the full assessed value, plus the Save Our Homes 3% annual cap that limits how much your assessed value can increase each year regardless of market appreciation.
Both states have above-average insurance costs. Texas averages about $4,000 per year due to hail, wind, and tornado risk. Florida averages about $4,500 per year due to hurricane risk and a troubled insurance market. The $500 difference slightly narrows Florida's overall tax advantage.
Texas has a combined average sales tax of 8.25% (6.25% state + up to 2% local). Florida's combined average is 6.98% (6% state + up to ~1% local). On $25,000 in annual taxable spending, that saves Florida residents about $318 per year. Both states exempt groceries.

Related Calculators

Texas Paycheck Calculator
Calculate your Texas take-home pay with $0 state income tax.
Florida Paycheck Calculator
Calculate your Florida take-home pay with $0 state income tax.
Texas Property Tax Calculator
Estimate Texas property tax by county with homestead exemptions.
Florida Property Tax Calculator
Estimate Florida property tax with homestead and Save Our Homes cap.

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