Did you know that over 67,000 retirees moved to Florida in 2019? It’s one of the most tax-friendly states which makes retiring in Florida is an easy decision for many.
Have you considered retiring in The Sunshine State? Are you concerned about your income for retirement? Do you understand Florida taxes for retiree citizens? The following guide will explain everything you need to know about how taxes in Florida work after retirement. Read on to learn more about the fantastic tax benefits the state has to offer.
Benefits of Florida Taxes for Retiree Citizens
Florida has many benefits for retirees but perhaps none are more important than the tax benefits. It’s also important to note that Florida’s cost of living is roughly the same as the national average.
There is no state income tax in Florida and that includes retirement income. Social security income is also tax-exempt in the state.
Florida does not collect state taxes for pension income or income from IRAs or 401Ks. There is no inheritance tax or estate tax in the state either. All of these exemptions set retirees and their families up for long-term stability.
What Taxes Do Florida Retirees Pay?
Property taxes are slightly lower than the national average despite all of the other exemptions. In fact, retirees are sometimes eligible for additional property tax breaks as well.
Florida retirees still have to pay federal income taxes. However, if social security is your only source of income, it will most likely be low enough for income tax-exempt.
Expect to pay taxes for up to 50% of your SS if you make over $25,000. If you make over $44,000 expect to pay taxes on up to 85% of your SS income. These numbers vary for married retirees filing jointly.
Why Are Retirement Communities Popular?
Retirement communities are also great ways for retirees to enjoy the benefits of Florida. It’s a great way to downsize your home and strengthen your finances along with the tax benefits.
Homeownership in Florida is often very expensive and has higher utility costs and property taxes. Luckily, retirement communities offer a cost-effect and maintenance-free alternative to homeownership.
Moving to a retirement community also offers flexibility if you plan to travel frequently after retiring. There are various floor plan sizes to accommodate the needs of retirees and avoid any unused space.
There is also an abundance of on-site activities to enjoy year-round. This readily available entertainment for residents is another great cost-saving benefit.
Lastly, retirement communities ensure the safety of an established neighborhood. This crucial feature gives retirees and their families peace of mind that is priceless.
Ready to Make the Move?
Now you know why Florida taxes for retiree citizens makes moving to the state a great financial decision. Aside from low property taxes, retirees are virtually exempt from all ordinary state income taxes.
Consider Solivita Living if retirement in Kissimmee, FL, and its tax benefits interests you. Our sales agent Christina Greenslade helps active adults start the retirement of their dreams.
Please contact Christina for more information on relocation assistance, available communities, and virtual tours.