Florida vs. Arizona for Retirement, Plus Georgia, Alabama and the Carolinas: Costs, Taxes and Insurance Compared

Florida vs Arizona for retirement is a match-up we hear about all the time. Many buyers who weigh it are leaving the Northeast or the Midwest. Many also add Georgia, Alabama, North Carolina or South Carolina to the list. Each state has a real case. This guide compares all six on income tax, property tax, insurance, home prices, climate and healthcare. Florida is represented by Palm Beach County and Port St. Lucie, where we work, and we point out the trade-offs honestly.

Key takeaways

• Florida has no personal income tax. As of Jan. 1, 2026, Arizona has a flat 2.5% rate, North Carolina 3.99% and Georgia 5.19%, while Alabama and South Carolina use brackets.
• The other five states all leave Social Security out of state income tax.
• Georgia excludes up to $65,000 of retirement income per person at 65 and older. South Carolina offers a $15,000 deduction starting the year you turn 65.
• None of the six states has its own estate tax or inheritance tax.
• In Palm Beach County the effective property tax rate on owner-occupied homes is 0.82%. In St. Lucie County it is 0.95%. Insurance is often the bigger Florida surprise.

Florida vs Arizona for retirement at a glance

Here is the quick version first. Florida wins on income tax, since it has none at all. Arizona's tax is low and flat, and it does not tax Social Security. Both have lots of retirees, warm winters and plenty of golf.

The big differences show up elsewhere. Florida brings beaches, humid air, storms and higher home insurance. Arizona brings desert heat, dry air and a very different landscape. Meanwhile, the other four states tax some retirement income. In return, they offer four seasons and, in many areas, lower home prices.

Income taxes: Florida vs Arizona for retirement and four other states

Income tax is where most people start, so we start there too. The figures below come from the Tax Foundation's 2026 state income tax table and each state's own tax agency.

Florida and Arizona

Florida does not tax personal income. That covers wages, pensions, IRA withdrawals and Social Security alike. For a retiree with large account withdrawals, this is the single biggest draw.

Arizona has a flat 2.5% income tax. However, the Arizona Department of Revenue lists Social Security retirement benefits as income that Arizona law does not tax. So a retiree living mostly on Social Security pays little Arizona income tax. One who draws heavily from a 401(k) or IRA pays 2.5% on that money.

Georgia

Georgia's flat rate is 5.19% as of Jan. 1, 2026, per the Tax Foundation. Still, Georgia is friendlier to retirees than that rate suggests. Its 2025 tax booklet lets people aged 62 to 64 exclude up to $35,000 of retirement income. At 65 and older, the cap is $65,000. Each spouse who qualifies can claim it. Social Security is not taxable in Georgia either.

Alabama

Alabama has three tax brackets for single filers: 2%, 4% and 5%. The top rate starts at just $3,000 of taxable income. Even so, Alabama's rules exempt amounts received under the federal Social Security Acts. In addition, a taxpayer 65 or older can exclude up to $6,000 of taxable retirement income.

North Carolina and South Carolina

North Carolina's flat rate is 3.99% for 2026. Its Department of Revenue states plainly that North Carolina does not tax Social Security benefits. Other retirement income, such as IRA withdrawals, is generally taxed.

South Carolina has brackets of 0%, 3% and 6%. Social Security is exempt there. Also, from the year you turn 65, you can deduct $15,000 from any South Carolina income. A separate retirement income deduction exists too.

Property taxes and the Florida homestead edge

Property tax is set locally in every state. So county numbers tell you more than a state average. The Tax Foundation's county data uses 2024 Census estimates. In Palm Beach County, the median home value is $447,300. Median taxes are $3,858, for a rate of 0.82%. St. Lucie County, home to Port St. Lucie, shows a $347,300 median value, $3,241 in median taxes and a 0.95% rate.

Florida's homestead rules soften the bill over time. A main home can get a homestead exemption. Then Save Our Homes caps the yearly rise in its assessed value at 3% or the rate of inflation, whichever is lower. So long-time Florida owners often pay far less than a new buyer on the same street. Before comparing with Arizona or Georgia, look up actual bills for the county you want in each state.

Insurance: the cost that changes the Florida vs Arizona retirement math

Insurance is where Florida loses ground. Homeowners premiums along the Florida coast can cost far more than in Phoenix, Atlanta or Charlotte. The reason is simple: hurricane and windstorm risk. Flood insurance is a separate policy, and a lender may require it in some zones.

There are ways to bring the bill down. Newer homes built to current code, impact windows, a newer roof and a wind mitigation report can lower premiums. That is one reason many retirees in Palm Beach County and Port St. Lucie choose newer construction or well-updated homes. Get real quotes on any home before you make an offer, in any state.

Home prices in Palm Beach County and Port St. Lucie

Prices vary widely inside each state, so compare specific places rather than state averages. In Palm Beach County, Miami Realtors reported an August 2026 single-family median of $650,000 and a condo and townhouse median of $300,000. Single-family homes went under contract in a median of 40 days, while condos took 69 days.

For many retirees, condos and villas are the sweet spot. They offer less upkeep and a lower entry price. Port St. Lucie, a bit farther north, often stretches a budget further than the southern part of Palm Beach County. Our guide to the most affordable places to retire in Florida compares options in our area.

Climate and lifestyle in Florida vs Arizona for retirement

Both states sell sunshine, but they feel very different. Southeast Florida is humid and warm all year. Summers are rainy, and hurricane season runs into the fall. The ocean, boating and beach life are close at hand from almost anywhere in Palm Beach County.

Arizona's low desert is dry, with very hot summers and mild winters. Some retirees love the dry air and the mountain views. Others find the summer heat hard to live with. Georgia, Alabama and the Carolinas offer four seasons, cooler winters and, in some areas, hills and mountains. Visit in the worst month, not just the best one, before you choose.

Healthcare access in Florida vs Arizona retirement areas

Healthcare depends more on the city than the state. Large metro areas in every one of these states have major hospitals and specialists. Rural areas, by contrast, can mean long drives for care.

Palm Beach County has many hospitals, doctors and specialists. Much of that care grew up to serve a large older population. Boca Raton, West Palm Beach, Jupiter and Palm Beach Gardens all have hospitals nearby. Wherever you look, check whether your Medicare plan works with the local doctors you would use.

Sales tax and estate tax

Florida's state sales tax is 6%. Palm Beach County and St. Lucie County each add a 1% local surtax, per the Florida Department of Revenue, for 7% in total. With no income tax, Florida leans more on sales tax. Still, most groceries and medicine are not taxed.

On estate taxes, the news is good across the board. The Tax Foundation's list of states with estate or inheritance taxes includes none of these six. Federal estate tax rules still apply everywhere.

Florida vs Arizona for retirement: which is better?

It depends on where your income comes from. It also depends on how you want to spend your days. A few patterns stand out:

• If you have large IRA or pension income, Florida's lack of income tax is hard to beat.
• If you live mainly on Social Security, the gap shrinks. All five other states exempt it.
• If you love the ocean and boating, southeast Florida fits.
• If storms and insurance costs worry you most, Arizona or an inland Southern state may suit you better.

Run your own numbers with a tax pro using your actual income. Then visit the places on your short list. Some retirees rent for a season before they buy. That is a smart way to test a new state. To see what our part of Florida looks like up close, start with our Boca Raton and Port St. Lucie area pages.

Frequently asked questions

Florida vs Arizona for retirement: which costs less?

It depends on your income and your house. Florida saves you income tax, which helps most if you have large withdrawals. Arizona's insurance costs are usually lower. Compare real tax bills and insurance quotes for homes you like.

Does Georgia tax retirement income?

Partly. Georgia lets each person aged 62 to 64 exclude up to $35,000. At 65 and older, the cap is $65,000 per person. Social Security is not taxed there.

Which of these states tax Social Security?

None of them. Florida has no income tax. The other five states all exempt Social Security from state income tax.

Do any of these states have an estate tax?

No. None of the six appears on the Tax Foundation's list of states with an estate or inheritance tax. Federal estate tax can still apply to very large estates.

Sources

• Tax Foundation, State Individual Income Tax Rates, 2026
• Tax Foundation, Property Taxes by State and County, 2026
• Tax Foundation, estate and inheritance taxes by state
• Arizona Department of Revenue, 2025 Form 140 instructions
• Georgia Department of Revenue, 2025 IT-511 booklet
• Alabama Department of Revenue, exempt retirement allowances rule
• Alabama Department of Revenue, Schedule RS instructions
• North Carolina Department of Revenue, Social Security benefits
• South Carolina Department of Revenue, tips for retirees
• Florida Department of Revenue, discretionary sales surtax rates
• Florida Department of Revenue, Save Our Homes
• Miami Realtors, Palm Beach County August 2026 market report

This article is general information, not legal, tax or financial advice. Tax rules change often, so talk with a licensed tax professional about your own situation before you move.

Already own in Palm Beach County and weighing a move? Start with what your home would sell for today, and we will map out your options. Relocating here instead? Ask for a free relocation consultation and a shortlist of homes and 55+ communities that fit your budget. Talk with our team.