Florida Residency Guide for Retirees

Why Florida for Retirement?

Florida has long been America's retirement destination, and for good reason. Beyond the weather and lifestyle, Florida offers significant financial benefits for retirees:

• No state income tax: All retirement income is state tax-free
• No estate tax: More of your estate passes to heirs
• Homestead protection: Unlimited creditor protection for your home
• Lower cost of living: Many areas more affordable than northeastern states

Taxation of Retirement Income

Florida does not tax any retirement income at the state level:

Income Type	Florida Tax	Federal Tax
Social Security	None	May be partially taxable
Pension income	None	Typically taxable
401(k) withdrawals	None	Taxable as income
Traditional IRA distributions	None	Taxable as income
Roth IRA distributions	None	Tax-free (if qualified)
Investment income	None	Taxed at various rates

Social Security Taxation

While Florida doesn't tax Social Security at all, federal taxation varies:

Federal Social Security Taxation

• Up to 85% of benefits may be federally taxable depending on total income
• Single filers: Benefits taxed if income exceeds $25,000
• Married filing jointly: Benefits taxed if income exceeds $32,000

Moving to Florida doesn't change federal taxation, but it eliminates any state tax on these benefits.

Pension Income

Florida's tax-free treatment extends to all pension income:

• Government pensions: Federal, state, and local government pensions
• Military retirement: All military retirement pay
• Private pensions: Corporate pension plans
• Railroad retirement: Full tier 1 and tier 2 benefits

Estate Planning Benefits

Florida offers significant estate planning advantages:

No State Estate Tax

Florida has no state-level estate or inheritance tax. Your heirs receive more of your estate compared to states like:

• Massachusetts (estate tax on estates over $1 million)
• New York (estate tax on estates over ~$6.5 million)
• Maryland (both estate and inheritance tax)
• New Jersey (inheritance tax on certain beneficiaries)

Favorable Trust Laws

Florida has modern trust laws that offer:

• Asset protection trusts
• Dynasty trust options
• Privacy protections for trust beneficiaries

Homestead Protection

Florida's homestead protection is among the strongest in the nation:

Creditor Protection

Under the Florida Constitution Article X, Section 4:

• Unlimited value protection: Your home is protected regardless of value
• Up to 1/2 acre in municipality: Protection covers your lot
• Up to 160 acres outside municipality: For rural properties
• Survives bankruptcy: Federal bankruptcy law respects Florida's homestead

Property Tax Benefits

Florida homestead also provides property tax benefits:

• $50,000 exemption: First $25K off all taxes, next $25K off non-school taxes
• Save Our Homes cap: Annual assessed value increase capped at 3%
• Additional senior exemptions: Available in some counties

Information for Snowbirds

Many retirees split time between Florida and another state. Here's what snowbirds need to know:

Establishing Florida Domicile

Even if you spend part of the year elsewhere, you can establish Florida as your legal domicile:

• File Declaration of Domicile in Florida
• Get Florida driver's license
• Register to vote in Florida
• Bank primarily in Florida
• Use Florida address for tax returns

The 183-Day Consideration

To strengthen your Florida domicile and avoid claims from your former state:

• Spend less than 183 days in any single taxing state
• Keep a calendar/log of your whereabouts
• Maintain more ties to Florida than any other state
• Keep records showing Florida as your primary home

Healthcare Considerations

When moving to Florida in retirement, consider:

Medicare

• Medicare coverage is nationwide - no change needed
• Medicare Advantage plans are location-based - you'll need to enroll in a Florida plan
• Medigap policies transfer automatically

Healthcare Access

• Florida has excellent healthcare facilities, especially in major metro areas
• Many snowbirds maintain relationships with doctors in both locations
• Telemedicine has made managing care across locations easier

Getting Started

To establish Florida residency in retirement:

1. Secure a Florida address: Purchase/rent property or use Your Tax Base
2. File Declaration of Domicile: Legal declaration of Florida residency
3. Get Florida driver's license: Surrender your old state license
4. Register to vote: In your Florida county
5. Update financial accounts: Bank, brokerage, retirement accounts
6. Update estate documents: Will, trust, powers of attorney
7. Notify former state: Some require notification of domicile change