Florida Taxes for Retirees Leaving California, New Jersey and New York: Income, Property and Estate Basics

Florida taxes for retirees look simple at first. There is no state income tax and no estate tax. Up close, though, the picture has more parts. If you are leaving California, New Jersey or New York for Palm Beach County, you will stop paying some big bills and start paying others, such as property taxes, special assessments and higher insurance. This guide shows what changes and how the homestead exemption works. It also covers a proposed 2026 amendment and the steps that make Florida your legal home.

Key takeaways

• Florida's constitution bars a state tax on the income of individuals, so pensions, IRA withdrawals and Social Security are not taxed by the state.
• Florida has had no estate tax for deaths after December 31, 2004. Federal income and estate tax rules still apply.
• The homestead exemption can cut a home's taxable value by up to $50,000, and Save Our Homes caps yearly increases in assessed value.
• Amendment 3 on the November 3, 2026 ballot would raise the exemption on non-school taxes, but new residents would wait four years for the larger amount.
• Filing a declaration of domicile, getting a Florida license and claiming homestead help show that Florida is your permanent home.

What retirees stop paying under Florida taxes

The biggest change is income tax. Article VII, Section 5 of the Florida Constitution says no tax shall be levied on the income of natural persons. So the state does not tax your pay, pension or Social Security. It also skips your IRA and 401(k) withdrawals and your investment income. For retirees with large accounts, this alone can change the budget.

The second change is the estate tax. According to the Florida Department of Revenue, a federal change eliminated Florida's estate tax for people who died after December 31, 2004. Florida also has no separate inheritance tax. Your estate may still owe federal estate tax if it is large enough, so keep your estate planning attorney in the loop.

What still applies at the federal level

Moving does not change your federal return. The IRS still taxes your IRA and 401(k) withdrawals, part of your Social Security if your income is high enough, and capital gains. So the savings come from dropping your state income tax, not your whole tax bill.

New Florida taxes and costs retirees start paying

Florida raises money in other ways, and retirees feel some of them more than others. Here is what usually shows up in a Palm Beach County budget.

Property taxes and special assessments

Property taxes are the largest Florida tax for most homeowners. Your bill depends on your assessed value and on several tax rates. The county, the school district, your city and any special districts each set one. Rates differ from one city to the next, so two homes with the same value in Boca Raton and Jupiter can have different bills.

Your tax bill can also include non-ad valorem assessments. These are flat charges for services such as solid waste or drainage, and some communities add special district fees. Exemptions do not reduce them. So look at the full bill on the Tax Collector's site, not just the millage. Our guide to property taxes in Florida walks through the math in more detail.

Insurance and HOA costs

Insurance is not a tax, but it often surprises retirees more than taxes do. Home and flood insurance near the coast in South Florida can cost far more than up north. Condo owners also pay their share of the building's master policy through association fees. Get insurance quotes on any home you are serious about, before you sign a contract.

Sales tax

Florida charges a state sales tax, and most counties add a local surtax. Groceries and prescription drugs are generally exempt. For many retirees, sales tax ends up a smaller part of the budget than property tax and insurance.

How homestead lowers Florida taxes for retirees

If you own a home and make it your permanent residence, you can claim the homestead exemption. According to the Florida Department of Revenue, it can lower the taxable value of the home by as much as $50,000. You must own and live in the home as of January 1, and you apply with the county property appraiser by March 1.

The Save Our Homes cap

Homestead also brings the Save Our Homes cap. Each year, the assessed value of a homestead can rise by no more than 3% or the change in the Consumer Price Index, whichever is lower. Over time, the gap between market value and assessed value can grow large. If you later move within Florida, you can carry, or "port," part of that gap to a new homestead.

Extra exemptions that cut Florida taxes for retirees over 65

The Department of Revenue also lists extra exemptions for people 65 and older with limited income. These are local options, so whether you qualify depends on your city or county and your income. Exemptions also exist for veterans and people with disabilities. Ask the Palm Beach County Property Appraiser which ones apply to your address.

Proposed 2026 changes to Florida taxes for retirees

Florida voters will decide a major property tax change on November 3, 2026. During a June 2026 special session, the Legislature passed HJR 1-F, which appears on the ballot as Amendment 3. Like any change to the state constitution, it needs at least 60% of the vote to pass.

According to the Florida Senate, the amendment would raise the homestead exemption on non-school taxes to $150,000 on January 1, 2027, and to $250,000 on January 1, 2028, with inflation increases after that. School district taxes would not get the larger exemption. The cap on yearly assessment increases for non-residential property would drop from 10% to 5%.

What Amendment 3 would mean for retirees who move later

This part matters most for people still up north. Under the Senate's description, the larger exemption goes to homeowners who are Florida residents on or before December 31, 2026. New residents would get a $50,000 homestead exemption for four years and then become eligible for the larger one. If the amendment passes, the date you become a Florida resident could affect your tax bill for years. Talk with a tax professional before you set your moving date around it, because the vote has not happened yet.

A sample first-year tax calendar

Timing trips up many new residents. Here is a simple way to think about your first year:

• Close on your home and move in before January 1 if you want homestead that year.
• Get your Florida license, plates and voter card in the first few weeks.
• File your declaration of domicile soon after you arrive.
• Apply for homestead by March 1.
• Expect your tax bill in the fall. The Tax Collector offers a discount for early payment.
• File a part-year return in your old state for the year you moved, if it requires one.

Keep copies of every filing in one folder. If your old state ever asks, you will have proof of when you moved.

Domicile steps for retirees moving to Florida

Your old state may not let you go easily. High-tax states can question whether you truly moved, especially if you keep a home there. So build a clear record that Florida is your permanent home. Common steps include:

1. File a declaration of domicile. Under Florida Statute 222.17, you sign a sworn statement and file it with the Clerk of the Circuit Court in your county.
2. Get a Florida driver license within 30 days of becoming a resident, as FLHSMV requires.
3. Register your vehicles in Florida and register to vote here.
4. Claim the homestead exemption on your primary home by March 1.
5. Move your doctors, bank accounts and important papers, and update your address with Social Security and the IRS.

Also, count your days. Many states look at how much time you spend there each year. Keep a simple calendar or travel log, and ask your adviser how your old state treats part-year residents.

Comparing Florida taxes for retirees by city

Within Palm Beach County, the tax picture shifts with your address. City tax rates, special districts, HOA fees and flood zones all change the yearly cost. A condo in Delray Beach, a single-family home in Jupiter and a gated community home in Boca Raton can carry very different bills even at similar prices.

Prices also vary by home type. In August 2026, the county's single-family median was $650,000, while the condo and townhouse median was $300,000, according to Miami Realtors. Our Boca Raton page covers one of the most popular areas for retirees leaving the Northeast. For a broader look at budgets, see our guide to the best 55+ communities in Florida.

Frequently asked questions

Does Florida tax Social Security or pensions?

No. Florida has no personal income tax, so it does not tax Social Security, pensions or retirement account withdrawals. Federal tax rules still apply.

Does Florida have an estate or inheritance tax?

No. The Florida Department of Revenue says no estate tax return has been required for deaths after December 31, 2004. Large estates may still owe federal estate tax.

When do I apply for the homestead exemption?

You must own and live in the home on January 1, and the application is due to the county property appraiser by March 1 of that year.

Will Amendment 3 lower Florida taxes for retirees who move in 2027?

If it passes, new residents would start with a $50,000 homestead exemption and could get the larger exemption after four years, according to the Florida Senate. School taxes would not change under it.

Sources

• Florida Constitution, Article VII, Section 5 and Article XI, Section 5
• Florida Department of Revenue, estate tax
• Florida Department of Revenue, property tax exemptions
• Florida Senate, HJR 1-F press release (June 2, 2026)
• Florida Statutes, section 222.17, declaration of domicile
• FLHSMV, new resident requirements
• Miami Realtors, Palm Beach County August 2026 market report

This article is general information, not legal, tax or financial advice. Tax rules and ballot outcomes change, so speak with a licensed tax professional or attorney about your situation.

Selling a Palm Beach County home as part of your plan? Start with a free home value report so you know your numbers. Moving here from up north? Request a free relocation consultation, and we will help you compare cities, home types and yearly costs. Contact Pure Equity.