Tax Advantage

Florida does not tax individual income, which means residents do not pay state taxes on wages, salaries, or investment income. This can be particularly advantageous for high earners or retirees.

The lack of a state income tax is often cited as a reason many people move to Florida, especially from states with higher income tax rates. It can be an appealing factor for both individuals and businesses.

Instead of income tax, Florida generates revenue through other means, such as sales taxes, property taxes, and various fees. The statewide sales tax rate is 7%, but local jurisdictions can impose additional sales taxes.

The absence of a state income tax can be a draw for businesses, potentially leading to a more favorable environment for startups and entrepreneurs.

Many retirees find Florida appealing due to the lack of state income tax on pensions, Social Security benefits, and other retirement income.

While there’s no specific number of days you must stay in Florida, spending at least 183 days in the state each year is often recommended to demonstrate that it is your primary residence.

You must show intent to make Florida your primary home. This can include:

• Obtaining a Florida driver’s license or state ID.
• Registering to vote in Florida.
• Filing taxes as a Florida resident (if applicable) and using a Florida address on important documents.

Maintain records that support your residency, such as:

• Utility bills.
• Bank statements.
• Lease agreements or property deeds.

To fully qualify as a Florida resident and take advantage of the lack of state income tax, it’s important to sever ties with your previous state of residence. This includes changing your address for all legal and financial documents.

To qualify, you must own the home and use it as your primary residence as of January 1 of the tax year.

The exemption can reduce the assessed value of your property by up to $50,000. The first $25,000 applies to all property taxes, while the additional $25,000 applies only to non-school taxes.

Homeowners must file an application with their county property appraiser's office, usually by March 1.

To fully qualify as a Florida resident and take advantage of the lack of state income tax, it’s important to sever ties with your previous state of residence. This includes changing your address for all legal and financial documents.

This cap applies to non-homesteaded residential properties (like rental homes or second homes), commercial properties, and vacant land.

Under this cap, the assessed value of non-homesteaded properties can only increase by a maximum of 10% per year. This provides some protection against large spikes in property tax bills that can occur due to rapidly increasing market values.

This cap was established through constitutional amendments and is intended to stabilize property taxes for non-homesteaded properties, making it easier for property owners to plan their finances.

Property owners should be aware that if a non-homesteaded property is improved or substantially altered, it may be assessed at full market value rather than the capped value.

You must own the property for which you are applying for the Homestead Exemption. This can include being the sole owner or a co-owner.

The property must be your primary residence, meaning you live there as your main home. You should occupy the property as of January 1 of the tax year for which you are applying.

You need to establish legal residency in Florida. This can be demonstrated through:

• A Florida driver's license or state ID.
• Voter registration in Florida.
• Other documentation shows Florida as your primary address.

You must apply for the Homestead Exemption through your county's property appraiser's office. The application is typically due by March 1 of the tax year.

When applying, you may need to sign an affidavit confirming that the property is your permanent residence and that you meet all eligibility criteria.