As someone who has lived in the northern states, you always hoped you'd be able to retire somewhere warmer. It's better for the elderly to live in warmer, sunnier environments, and you have more usable days where you can participate in the activities you love.
One of the states that people often travel to for retirement is Florida. Florida is among the most tax-friendly states for retirees in the country. It's a great place to retire thanks to not having a state income tax and a $50,000 homestead exemption given to permanent residents. Seniors, beneficially, may qualify for even more.
Many people retire in Florida because of the sunshine, easy access to the ocean and popular activities. With no state income tax, this just adds to the benefit of moving south. There are a few other benefits that kick in once you're a permanent resident of Florida, especially if you plan to remain for a few decades. Here's a rundown of the most common questions about taxation in Florida.
Are Social Security benefits taxed in Florida?
No, they are not taxed in Florida. Other types of benefits or income that are not taxed include IRAs, 401(k) and employer retirement plans, private pensions, and public pensions.
Do retirees get special benefits when they move to Florida?
One of the most significant benefits is that those aged 65 or older who meet the required income limits can receive additional homestead exemptions of up to $50,000. In some cases, exemptions up to the value of a home are available (as long as the value of the property is under $250,000). The homeowner must have lived at that location for at least 25 years and not have an income over $29,454 as of 2018. Widows and widowers who are residents of Florida are legally able to claim an additional $500 in exemptions.
Are there inheritance or estate taxes in Florida?
No, there are not, which is another benefit to those who move to the state.
Should you consider Florida for retirement?
It can be a great place to move if you plan in advance. Keep in mind that you will need to update your will and estate plan if you decide to move out of your current state and to Florida for retirement.
These are a few things to know about retirement in Florida. There are many benefits, so it's worth looking into.