What Taxes Florida Doesn’t Have and What You Still Need to Pay

Florida is famous for its beaches, theme parks, and year-round sunshine. But for many new residents and frequent travelers, the real attraction is financial. The Sunshine State has a reputation as a tax haven within the United States. If you are moving from a high-tax state like New York or California, or if you are an international visitor planning an extended stay, the financial landscape looks very appealing.

However, running a state government costs money. Since Florida does not collect certain taxes, it has to make up that revenue elsewhere. Moving to Florida is not a complete escape from taxation. It is simply a shift in how and what you pay.

Whether you are a digital nomad, a retiree, or a remote worker looking to maximize your income, you need to know the rules. Here is a clear breakdown of what taxes you can say goodbye to in Florida and the costs you still need to budget for.

The Big Savings: No State Personal Income Tax

The headline benefit of becoming a Florida resident is simple. Florida is one of nine US states that does not impose a state income tax on individuals.

If you are moving from a state with a high marginal tax rate, this results in an immediate raise. For a remote worker earning a solid salary, saving 5% to 13% of your income that would otherwise go to the state government is a significant financial win.

This benefit extends beyond your paycheck. Florida’s constitution prohibits the state from taxing your "intangible personal property." In plain English, this means Florida generally does not tax your investment income. You will not pay state-level taxes on:

• Salaries and wages
• Bonuses and commissions
• Capital gains from selling stock or real estate
• Dividends and interest income

For retirees drawing from 401(k)s or investors living off portfolio income, this structure makes Florida one of the most wealth-friendly environments in the country.

No Estate or Inheritance Taxes

Another major draw for long-term planning is how Florida handles generational wealth. Florida does not levy an estate tax or an inheritance tax. These are often referred to as "death taxes" in other jurisdictions.

In some US states, your heirs might have to pay a state tax on the assets you leave behind, even if the amount is below the federal estate tax threshold. In Florida, what you pass on to your family stays with your family, assuming you fall under the very high federal limits.

This policy is a primary reason why Florida attracts so many retirees. It simplifies estate planning and ensures that wealth transfer is not eroded by state-level bureaucracy.

The Trade-Off: Sales and Tourist Taxes

Florida still needs to pave roads, fund schools, and maintain infrastructure. Since the state does not tax your income, it leans heavily on consumption taxes. This is where you will notice the difference in your daily spending.

State Sales Tax Florida has a base state sales tax of 6%. However, most counties add their own discretionary sales surtax on top of that. This means the actual rate you pay at the register is usually between 7% and 7.5%.

You will pay this tax on most tangible goods, including: * Clothing and electronics * Restaurant meals and takeout * Furniture and vehicles * Commercial rentals

Tourist and "Bed" Taxes If you are visiting Florida or living as a digital nomad in short-term rentals (like Airbnbs or hotels), you will encounter the Tourist Development Tax. This is often called a "bed tax."

Counties levy this tax on short-term accommodations rented for six months or less. The rate varies by county but generally ranges from 3% to 6% on top of the standard sales tax. If you plan to stay in Florida for a few months without signing a long-term lease, your accommodation costs will be higher than the listed nightly rate suggests.

Property Taxes and Insurance Costs

If you plan to buy a home in Florida, property taxes will be your primary contribution to local services.

There is no state-level property tax. Instead, local county governments set the rates based on the assessed value of your home. While Florida’s property tax rates are near the national average, property values in coastal areas have risen sharply. This means your tax bill could be higher than you expect.

The Homestead Exemption If you make Florida your primary permanent residence, you can file for a Homestead Exemption. This benefit reduces the taxable value of your home by up to $50,000. More importantly, it caps the annual increase in your home’s assessed value. This prevents your taxes from skyrocketing even if the market value of your home doubles.

The Insurance Factor While not a tax, insurance is a mandatory cost for homeowners that functions like one. Due to hurricane risks, home insurance premiums in Florida are among the highest in the nation. When budgeting for a move, you must calculate property taxes and insurance together to get a realistic picture of your housing costs.

The Federal Reality for International Visitors

If you are an international traveler, a Canadian snowbird, or a digital nomad from Europe, Florida’s lack of income tax comes with a major caveat: the US Federal Government.

Florida cannot save you from the IRS if you spend too much time in the United States. The US uses a formula called the Substantial Presence Test to determine if a non-citizen is a "resident for tax purposes."

If you trigger this status, the US government may tax your worldwide income, regardless of the fact that Florida itself doesn't want a cut. This is a common pitfall for frequent visitors who love the Florida lifestyle but lose track of their days.

To see where you stand with US federal rules, you can use the free Substantial Presence Test Calculator from Days Monitor. It helps you understand exactly how many days you can stay before tax obligations might kick in.

Proving You Are a True Floridian

Because Florida offers such significant tax advantages, high-tax states (like New York) do not let you go easily. If you claim to be a Florida resident to avoid taxes but keep spending most of your time elsewhere, your former state may audit you and demand back taxes.

To truly benefit from Florida’s tax laws, you must prove that your life is centered there. This generally means:

• Spending more than 183 days (the majority of the year) in Florida.
• Updating your driver’s license and voter registration to Florida.
• Moving your primary banking and medical records to the state.

The burden of proof is on you. If an audit happens, you need a reliable record of exactly where you were on every day of the year.

This is where precise tracking becomes essential. You cannot rely on memory or flight confirmations alone. Using a dedicated tracking tool helps you build an irrefutable history of your physical presence. The Days Monitor app is designed specifically for this purpose. It automatically logs your location and provides the data you need to defend your residency status confidently.

Conclusion

Florida offers an incredible financial environment for those who navigate it correctly. The absence of state income, estate, and inheritance taxes allows you to keep more of what you earn and build wealth faster.

However, the system relies on a balance. You will pay more in sales taxes and potentially higher property costs. For international visitors, the federal tax rules remain a critical boundary line.

If you plan to make the move, do it with your eyes open. Calculate the total cost of living, not just the tax savings. And most importantly, ensure your paperwork and your physical presence match your claims.

Whether you are counting days to avoid overstaying a visa or tracking time to establish tax residency, accuracy is your best friend. Download Days Monitor today to keep your travel history organized, secure, and ready for whatever the future holds.