Tax Breaks for Seniors in Florida

Discover Florida’s Tax Advantages

Florida is a top resort and retirement destination – and there are plenty of reasons why. From being a tax-friendly state for retirees to asset protection and mild weather, The Estates at Carpenters in Lakeland offers retirement benefits you won’t find everywhere.

While snowbirds flock to Florida when winter weather sets in, the truth is that the climate is ideal year-round. Average temperatures in Polk County are between 63 and 83 degrees so that you can enjoy consistently warm weather every month. But that’s not all. Equally important, financial incentives abound when you call Florida home.


Build Wealth With No State Income Tax

Did you know that Florida does not have a state income tax rate for individuals? This means all wages and earnings are exempt. Without taxation on wages and earnings, retirees can:

  • Continue building wealth
  • Enjoy increased disposable income
  • Feel a greater sense of financial stability during retirement

Enjoy Tax Exemptions on Retirement Income

The state of Florida does not tax retirement or pension income on a state or local level.

This means that instead of being taxed on your retirement accounts’ income, distributions from 401ks, IRAs, pensions, military retirement pay, Social Security benefits*, or your savings, you can continue to sustain your lifestyle without worries while preserving your assets.

*Social Security may be taxed on a federal level, so be sure to talk to a financial professional for more information.

Break Free From Capital Gains Tax

Capital gains tax is typically imposed on the profits earned from the sale of investments, such as stocks, bonds, and real estate when the value has increased since the initial purchase. However, in Florida, this tax is not levied.

By not taxing capital gains, Florida allows seniors to enjoy the full benefits of their investment growth while helping them grow even larger.

To put it simply, by not taxing capital gains, when seniors sell their investments, they can retain the entire amount of profit without having to allocate a portion of it towards taxes.

Pass on Your Wealth Without Estate or Inheritance Taxes

Florida has no estate taxes or state inheritance taxes. This means your estate will not only be worth more, but your loved ones and family members won’t have to pay state taxes on any money willed to them.

This often brings retirees peace of mind knowing they can pass on their wealth and assets to beneficiaries without significant tax burdens while continuing to preserve their estate for future generations.

What Taxes Does Florida Have?

Although Florida is one of the lowest tax states to retire to, it’s important to note that Florida is not free from taxes altogether. Some of the common taxes those in Florida may see include:

Local and State Sales Tax

State and local sales tax rates vary throughout Florida; however, it’s 7.02% combined on average. Some goods and services are exempt, including groceries and prescriptions, and there may be discretionary sales surtaxes, as well.

Property Tax

Have you heard there are high property taxes in Florida? The truth is, it varies widely. If this is something you’re worried about, you might be interested in the various exceptions to property tax rates.

If you’re 65 or older, you may qualify for exemption or discounts. These include:

  • Homestead exemptions
  • Homestead property discounts for Veterans
  • $5,000 property tax exemptions for widows and widowers

These can vary by county, so be sure to reach out to a professional who can help.

Ready to learn more?

We’d be happy to help support you on your journey. For more information about retirement taxes, the benefits of living at The Estates, and how The Estates can help you keep more of your retirement pie, we invite you to contact us. Or, check out some of the helpful resources on our blog today.

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