Florida's No-Income Tax Benefit Eroded by High Housing Costs for Retirees
For retirees moving to Florida in pursuit of its no-income tax policy, rising property insurance costs and condo assessments are negating the financial benefits. While a couple with $120,000 annual retirement income can save several thousand dollars annually compared to states like New York or New Jersey, these savings often vanish due to high housing expenses. Post-Surfside legislation in 2021 mandated that condo associations fully fund structural reserves for buildings over three stories. This led to significant one-time assessments—sometimes reaching five figures—for owners of older coastal units. These costs are particularly burdensome for retirees who may not have the liquidity or income to cover such expenses. Florida's overall tax burden remains low, with a per capita adjusted state and local tax rate of $5,110 in 2024—ranked fourth lowest nationally. However, high insurance premiums and hidden housing costs are increasingly making Florida less affordable for retirees who rely on fixed incomes.
Topics: condo assessments Florida homeowners insurance retirement costs tax savings