Florida is one of the most popular states that senior citizens choose to retire or live in. With plenty of luxurious housing options, outdoor activities, and sunny weather year-round, there are plenty of perks to spending your golden years in the state of Florida.
To make the most of your savings, there are also impressive tax benefits that seniors can enjoy in Florida. For instance, it is one of the few states that doesn’t charge income tax, and they don’t tax pension income or any income from an IRA or 401K. There are also no state taxes on social security, along with inheritance tax and estate tax.
In addition to Texas, South Dakota, Wyoming, Alaska, Washington, and Nevada, Florida is one of the states that have no income tax, making it a good option for those who plan on working. Their combined sales tax rate of 6.8% is also relatively low, reducing expenses for thrifty seniors.
In terms of property tax, the state also offers 100% exemption for those aged 65+ who have had permanent Florida residence for a minimum of 25 years. However, this depends on your specific county or city and applies if your home is valued at under $250,000.00. Any widow or widower who resides in Florida can also get an additional $500 exemption.
Disabled veterans aged 65 and older can also qualify for a discount in addition to this property tax deduction if they have a combat-related disability.
The bottom line is that Florida is an extremely tax-friendly state for seniors looking to make the most of their accumulated savings. With relatively low sales tax rates and property tax rates compared to the national average, seniors can potentially save thousands in terms of tax breaks.
Learn more about living options for seniors aged 55+ at Senior Strong today!