Important: This article provides general real estate and tax information, not individualized tax, legal or financial advice. Tax results depend on income, residency, property use, ownership structure and current law. Consult a qualified tax professional and the St. Johns County Property Appraiser before making a decision.

What Tax Advantages Do Retirees Get in Florida?

• No Florida individual income tax: Florida does not require residents to file an individual state income tax return.
• No Florida tax on Social Security: Social Security benefits are not subject to Florida income tax, although federal tax may still apply.
• No Florida tax on retirement-account withdrawals: Florida does not levy individual state income tax on pension payments, IRA distributions or 401(k) withdrawals.
• Homestead property-tax benefits: Eligible permanent residents may reduce the taxable value of their primary home through homestead exemption.
• Save Our Homes protection: Once established, the annual increase in a homesteaded property's assessed value is generally limited to the lower of 3% or the applicable Consumer Price Index change.
• Portability: Eligible homeowners moving from one Florida homestead to another may transfer up to $500,000 of accumulated Save Our Homes assessment difference.

Florida Does Not Impose an Individual State Income Tax

Florida's most widely recognized retirement tax advantage is its lack of an individual state income tax. The Florida Department of Revenue states that Florida does not impose a personal income tax and therefore has no personal state income-tax filing requirement.

For retirees, this can affect several common income sources. Florida does not levy an individual state income tax on pension payments, traditional IRA withdrawals, 401(k) distributions, investment income or wages from part-time employment.

That does not mean every type of income becomes tax-free. Federal income-tax rules still apply, and income earned in another state may create an obligation in that state. Retirees who maintain homes, businesses or income-producing property elsewhere should get advice about residency and multistate tax exposure.

The potential value of Florida's policy varies by household. A retiree moving from a state with a high income-tax rate and substantial taxable retirement distributions may see a meaningful difference. Someone with modest taxable income or moving from another no-income-tax state may see a smaller benefit.

A proper comparison should look beyond the headline tax rate. Evaluate your expected retirement income, housing costs, homeowners insurance, flood insurance, sales taxes, healthcare costs and property taxes before deciding how much a Florida move may save.

Florida Does Not Tax Social Security Benefits

Because Florida has no individual state income tax, it does not tax Social Security retirement benefits at the state level. This can make retirement budgeting simpler for households that rely heavily on Social Security.

The distinction between state and federal tax is important. The Internal Revenue Service explains that part of a person's Social Security benefits may be federally taxable depending on total income and filing status. The federal calculation generally considers one-half of Social Security benefits plus other income, including tax-exempt interest.

In practical terms, living in Florida does not automatically eliminate federal tax on Social Security. It removes an additional state income-tax layer that residents of some other states may face.

The same distinction applies to pensions and retirement-account withdrawals. Florida does not impose state individual income tax on those distributions, but they may remain taxable on a federal return.

How Florida's Exemption Helps Eligible Homeowners

Retirees who establish a St. Augustine or St. Johns County property as their permanent residence may qualify for Florida's homestead exemption. The exemption reduces the assessed value used to calculate certain portions of the property-tax bill.

In St. Johns County, the full homestead exemption amount shown for 2026 is $51,411. The exact tax savings are not equal to the exemption amount because different portions of the exemption apply to different taxing authorities, and the final savings depend on local millage rates.

Homestead exemption is not automatic. The home must qualify as the owner's permanent residence, and the owner must apply with the St. Johns County Property Appraiser. Eligibility is based on Florida law and the applicant's facts, including ownership and permanent-residency status.

Buyers should also understand that a current owner's tax bill is not a reliable forecast of what they will pay after purchasing the home. The St. Johns County Property Appraiser warns that exemptions and assessment caps associated with the prior owner are removed after a change of ownership.

The property may then be reassessed based on current value. A retiree purchasing a home should estimate future taxes using the expected purchase price and the exemptions for which the new owner may qualify—not the seller's current tax bill.

How the Save Our Homes Cap Works

Save Our Homes is an assessment limitation for qualifying Florida homestead property. After the first year a home receives homestead exemption and is assessed at just value, future annual increases in assessed value are generally limited to the lower of:

• 3% of the prior year's assessed value; or
• The applicable percentage change in the Consumer Price Index.

This protection can become valuable over time when a home's market value rises faster than its assessed value. The difference between market value and the capped assessed value is commonly called the Save Our Homes assessment difference.

The cap does not freeze property taxes. Taxing authorities can change millage rates, non-ad valorem assessments can change, and assessed value may continue rising within the permitted limit. Florida's recapture rule can also cause assessed value to rise within that limit even when market value remains level or declines, as long as assessed value is below just value.

Save Our Homes also does not generally provide an immediate capped assessment based on the prior owner's tax history. A newly purchased property is typically reassessed after the change in ownership. The new owner's Save Our Homes protection begins after the property qualifies for homestead exemption.

Why Save Our Homes Can Matter During Retirement

Retirees often place a high value on predictable housing expenses. Although Save Our Homes does not guarantee that the property-tax bill will remain unchanged, it can limit how quickly the assessed value of a qualifying primary residence rises.

Over a long retirement, that limitation may provide meaningful protection when local property values increase. Its potential value generally grows with the length of time the owner maintains the homesteaded property and the difference between market appreciation and permitted assessment growth.

Portability May Help Retirees Who Already Own a Florida Homestead

Retirees moving from one Florida homestead to another may be able to transfer part or all of their accumulated Save Our Homes assessment difference. This transfer is known as portability.

The St. Johns County Property Appraiser states that the maximum transferable amount is $500,000. The office also explains that eligible owners generally have up to three tax years to transfer the benefit from a former Florida homestead.

Portability can be especially relevant to retirees who are downsizing, moving closer to family or relocating from another part of Florida to St. Augustine or St. Johns County. It may reduce the assessed value of the new homestead compared with what it would have been without the transfer.

The calculation depends on whether the new property is more or less valuable than the previous homestead, as well as the owner's eligibility and filing history. Homestead exemption itself does not transfer automatically; the homeowner applies for homestead on the new property and separately requests portability.

Important Considerations for Retiree Buyers in St. Johns County

Florida's tax structure can be attractive, but it should not be evaluated in isolation. Before purchasing a retirement home, consider the complete cost of ownership.

• Estimate property taxes after the sale. Do not rely on the seller's current bill.
• Confirm homestead eligibility. A second home, seasonal residence or investment property may not qualify.
• Review insurance costs. Homeowners, wind and flood coverage can materially affect the monthly budget.
• Check association expenses. Condominium and homeowners-association fees can change over time and may include special assessments.
• Evaluate federal taxes. Social Security, pensions and retirement-account withdrawals may still create federal income-tax liability.
• Document Florida residency carefully. Moving to Florida involves more than owning a property, particularly when ties to another state remain.
• Ask about other exemptions. Some senior citizens, veterans, surviving spouses and people with disabilities may qualify for additional property-tax benefits.

A real estate professional can help you estimate ownership costs, compare communities and identify the questions to ask. A tax professional should evaluate how Florida residency and a home purchase affect your individual tax plan.

FAQ

Does Florida tax pensions, IRAs or 401(k) withdrawals?

Florida does not impose an individual state income tax, so it does not levy state income tax on pensions, IRA distributions or 401(k) withdrawals. Federal income tax may still apply based on the type of account, the distribution and the retiree's overall tax situation.

Does Florida tax Social Security benefits?

Florida does not tax Social Security benefits at the state level. However, a portion of those benefits may be subject to federal income tax depending on the recipient's combined income and filing status.

Will my property taxes be the same as the seller's?

Usually not. The seller may have years of Save Our Homes protection, portability or exemptions that will not remain with the property after the sale. The property is generally reassessed following the ownership change, so buyers should estimate taxes using the anticipated purchase price and their own eligibility.

Can I use Save Our Homes on a vacation property?

Save Our Homes applies to qualifying homestead property, which generally must be the owner's permanent Florida residence. A vacation home, second home or investment property ordinarily does not receive the homestead-based Save Our Homes limitation.

Can I transfer my property-tax savings from another state?

No. Florida portability applies to eligible Save Our Homes assessment difference accumulated on a previous Florida homestead. Property-tax benefits from a home in another state do not transfer into Florida.