Updated October 8, 2026. Florida is one of the most tax-friendly states for retirees, but planning still matters: property taxes, required withdrawals, Medicare costs and protecting your money from scams all affect how far a fixed income goes. This guide covers the Florida-specific basics and where to get free, unbiased help.
Florida Has No State Income Tax
Florida does not have a personal income tax, inheritance tax or gift tax. (Source: Florida Department of Revenue.) That means Florida does not tax your Social Security, pension or retirement account withdrawals, though federal income tax can still apply. Florida's estate tax also ended for people who died after December 31, 2004. (Source: Florida Department of Revenue.)
Property Tax Breaks for Florida Homeowners
Homestead exemption
If you own your home and it is your permanent residence on January 1, you can apply for a homestead exemption of about $50,000. The first $25,000 applies to all property taxes, including school taxes. The second part applies only to non-school taxes and has been adjusted for inflation since 2025; for 2026 it is up to $26,411. Apply to your county property appraiser by March 1. (Sources: Florida Department of Revenue PT-113 and DOR inflation adjustment.)
Save Our Homes cap
After your first year with a homestead exemption, your home's assessed value can rise by no more than 3 percent a year or the change in the cost of living, whichever is lower. If you move, portability can let you carry some of that savings to your new Florida home. (Source: Florida Department of Revenue.)
Extra exemptions for homeowners 65 and older
Counties and cities may offer an additional homestead exemption of up to $50,000 for homeowners 65 and older whose household income is under a yearly limit, which is $38,686 for 2026. Some also exempt the full value of a home worth less than $250,000 that a qualifying owner has lived in for at least 25 years. Not every county or city offers these, so ask your property appraiser; our guide to Florida property tax exemptions for seniors covers every exemption. (Sources: DOR PT-110 and DOR 2026 income limit.) Voters will also decide on a larger homestead exemption on November 3, 2026: read Florida Amendment 3 explained.
Social Security
Full retirement age is 67 for anyone born in 1960 or later. You can start benefits as early as 62, but your monthly check is permanently smaller. (Source: Social Security Administration.) Benefits rose 2.8 percent in January 2026. Social Security normally announces the next year's increase in mid-October, so check ssa.gov for the 2027 figure.
Required Minimum Distributions
If you have a traditional IRA, 401(k) or similar account, the IRS requires you to start taking money out each year at age 73 for most current retirees, or 75 if you were born in 1960 or later. Your first withdrawal can wait until April 1 of the following year, but then you must take two that year. Missing a withdrawal can cost a penalty, so ask your plan or a tax professional. (Sources: IRS RMD FAQs and IRS final regulations.)
Lower Your Medicare Costs
- Medicare Savings Programs can pay your Part B premium, and for those with the lowest incomes, deductibles and copays too. In 2026 the national income limits start at $1,350 a month for one person for the most generous program and go up to $1,816 a month for help with the Part B premium. In Florida, apply through the Department of Children and Families; see our guide to Medicare Savings Programs in Florida for Florida's limits. (Source: Medicare.gov.)
- Extra Help lowers drug plan premiums, deductibles and copays. Apply through Social Security online or at 1-800-772-1213. (Source: Social Security.)
- Review your plan every fall. See our guide to Medicare Open Enrollment 2027.
Plan for Care and Protect Your Money
- Long-term care is the biggest wild card. Medicare does not pay for most long-term care. Learn how Florida Medicaid long-term care works, including its asset limits and five-year look-back, before you need it.
- Sign a durable power of attorney and a health care surrogate while you can, so someone you trust can act for you. See alternatives to guardianship.
- Watch for exploitation. If someone is taking an older adult's money, report it to the Florida Abuse Hotline.
Free, Unbiased Help
- SHINE gives free, confidential Medicare counseling. Call the Elder Helpline at 1-800-963-5337. (Source: Florida Department of Elder Affairs.)
- Florida Senior Legal Helpline, 1-888-895-7873, weekdays 9 a.m. to 4:30 p.m., gives free legal advice by phone to Florida residents 60 and older who meet income guidelines, including on wills, probate, Medicaid and consumer problems. (Source: Elder Affairs.)
- On a fixed income? See assistance programs for seniors in Florida and SNAP for seniors.
If you work with a paid financial advisor, look them up first on FINRA BrokerCheck to confirm their licenses and any disciplinary history.
Social Security benefits go up 3.6% in 2027. See what the 2027 COLA means for your budget and when the raise starts.
Disclaimer: This article is for informational purposes only and does not constitute medical, financial, or legal advice. Readers should consult a qualified healthcare provider for medical concerns, a financial advisor for financial planning, and an attorney for legal matters. The resources and programs mentioned are subject to eligibility requirements and availability, which may vary. While we strive for accuracy, the information provided may not reflect the most recent updates. Always verify details with official sources or professionals before making decisions based on this content.