It’s no secret that Florida is the ultimate retirement destination in the United States. This is for good reason – the state has gorgeous weather, is replete with golf courses, and has stunning beaches that last for days. If you’re tired of the frigid winters of the northeast and Midwest, Florida provides a tropical respite. But it’s not just the state’s natural beauty that draws retirees towards it. The tax system of Florida is also a huge encouragement. The state has no income tax, meaning that all types of retirement income are tax-free at a state level. This even includes Social Security! And that’s not all – most income tax-free states try to replace their lost revenue with increased taxes on sales or property, but Florida keeps both of theirs close to the national average. With that in mind, here are the tax benefits of retiring in Fort Myers, FL.
Tax-Friendly for Retirees
As we’ve stated above, Florida is a tax-friendly state. It has no income state tax so your pension, social security income, and any income you receive from your IRA or 401(k) goes untaxed. This can add up to thousands in tax savings when compared to other states. Florida also does not have inheritance or estate tax. All of these factors make Florida a respite in more ways than one, and the state continues to draw retirees for this reason, among many others. When you retire in Florida, you’re keeping your budget healthy while partaking in the state’s lush beauty, multiple activities, and unique charm.
What About Property Taxes?
Florida does charge property taxes, but they are not especially high. Property taxes are one of the local government’s main sources of income, so this is especially heartening. The average effective property tax rate of the state is 0.83%, which is below the US average of 1.07%.
The median home value of Florida hovers around $245, 100, just above the national median. For retirees, however, that isn’t too much cause for alarm, as this age group tends to spend more of their income on housing compared to others. This, however, is another reason why retirement communities are so popular here. Depending on the ones you pick, you can enjoy stylish living amenities with housekeeping services and a smorgasbord of programs and activities, at an affordable price. If you do choose to spend on property in Florida, however, know that some areas have higher housing costs than others. Miami, for instance, will have higher costs than Fort Myers.
What You Should Know About Sales Taxes
Sales taxes in Florida are quite close to the national average when you consider both state and local rates. However, rates in Florida do not apply to medicine or groceries, which are two major expenses when it comes to retirement. This, again, works out in Florida’s favor.
Florida – the Smart Choice
To put it simply, Florida isn’t just a gorgeous place to spend your golden years, it’s also the smart choice when it comes to finances. If you’re considering moving to a new city for retirement, these are all factors to consider so that you can enjoy your retirement years to the fullest.
