If you’re planning on a move to Florida you’ll want to consider a few things that are unique to the Sunshine State and could benefit you financially in the long-run.
I remember when I moved here full-time, I was ecstatic to learn that although home prices were higher, there would be some financial benefits that could off-set these costs.
- There is no state income tax in Florida: If you are of working age and plan to get paid as a Florida resident, you can expect an immediate raise. Depending on where you came from this could be a 10-37% increase in your pay. In addition to having no state income tax – there’s no estate tax, intangible goods tax or inheritance tax.
- Retires Benefit from Tax Breaks: The state-level incomes tax laws in Florida apply to every form of income, including Social Security benefits. The federal tax rate for social security benefits is 50% per person with an income of up to $25,000 or $34,000 for households filing jointly. Individuals earning more than $34,000 and couples earning more than $44,000 are taxed 85% of their social security benefits. Several of the states will also take as much as 5.7% more for state-level social security taxes.*As of 2023, always advise a CPA.
Florida also withholds from taxing pension payouts. This means that 401(k)s and IRAs will stretch further in Florida than they will elsewhere. Florida is one of only 12 states that don’t levy a tax on 401(k) and IRA pension distributions.
Other financial benefits of moving to Florida:
- Homestead Tax Exemption: By making Florida your permanent residence, you can save up to $50,000 off the assessed value of your home in property taxes.
- Kids Can Qualify Full Ride Scholarships for State Colleges: There is a unique opportunity for students to qualify for a number of state scholarships that provide full rides for in state universities. Bright Futures is an initiative to make this happen on a number of levels. Here are the qualifications for the student:
- Be a Florida resident, and a US Citizen or eligible noncitizen.
- Earn a diploma from a Florida high school or high school equivalent.
- Be enrolled, or enrolling, for at least six credit hours per semester.
- Complete the Florida Financial Aid Application before August 31 of your graduation year.
- Enroll in a postsecondary program in the state of Florida.
- Not have been convicted of a felony.
- More information about all of the scholarship options includes: https://scholarships360.org/scholarships/bright-futures-scholarship-requirements/
These are just a few reasons to consider a move to paradise. As you’re crunching numbers, be sure to consider these long-term financial benefits. If you’re ready to start your search, I’d love to help you with your home search. You can contact me at jess@caineluxuryteam.com.
Jess Your Naples Realtor 