They say there are only two things that are certain in life: death and taxes. In the state of Florida, however, taxes are a little less certain –or at the very least, less– which makes it a great place to consider for retiring. Of course, taxes are just one part of the equation when you’re looking for the perfect retirement location. Fortunately, Florida has something to offer everyone. Well, anyone who loves the idea of abundant sunshine, temperatures above 60 most of the year, and never needing to shovel snow again, for starters.
Tax Benefits of Retiring in Florida
There are plenty of reasons people consider Florida for their retirement destinations. Sunshine. Warm weather. Beaches. Ocean. Gulf. Abundant outdoor entertainment. There’s always something to do in Florida, and the ocean views are simply stunning. Those are some of the obvious reasons people consider Florida for their retirement homes. However, the tax benefits of retiring in Florida are what ultimately convince most older adults to make Florida their retirement homes.
For these tax benefits, Florida warrants serious retirement consideration:
Income tax benefits. There is no state income tax in Florida. For retirees living on fixed retirement incomes, this can be a huge benefit. While you are still required to pay federal income taxes, you do not need to pay taxes on your income at the state level. Depending on how much of your retirement income is considered taxable income, this could result in huge savings each year, especially over locations where retirement income can exceed 13 percent.
Inheritance tax benefits. In the state of Florida, there are no state taxes assessed when you pass items to friends and family. This is especially beneficial for wealthy retirees with assets in excess of $11 million who must pay federal inheritance taxes. In Florida, there will be no additional taxation beyond what the Federal Government requires.
Additionally, the state sales tax for Florida is quite reasonable on a national scale weighing in at only six percent. Some county and local governments may assess an additional penny or so in addition to the standard state sales tax, but even seven percent is extremely reasonable on a nationwide scale. And all this is before we’ve explored any of the real estate tax benefits of retiring in Florida.
Real Estate Tax Benefits of Retiring in Florida
Depending on where you buy a home in the United States, property taxes can become true areas of concern for some families by driving up the monthly note on the home year-after-year. This is especially the case for people who purchase homes in states that do not provide appropriate caps on property tax increases.
Florida does have property tax and is near the national average for property taxes. What sets Florida apart, though, when it comes to real estate taxes is that homeowners are exempt from up to $50,000 as long as Florida is their primary residence and their retirement home is their primary residence. And, from here, things only get better, as the exemptions are even higher for people who are military veterans or who are over the age of 65. These exemptions apply even if your primary home is a condo, a house, or a mobile home. In other words, you do not need to be super-wealthy to take advantage of the tax benefits of retiring in Florida.
People considering retirement in Northeast Florida may wish to consider Villages of Seloy in St. Augustine, FL to take advantage of the many tax benefits of retiring in the Sunshine State, while also adopting a comfortable, affordable, low-maintenance coastal lifestyle. This way, you can focus on actually enjoying your retirement, rather than trying to maintain a home or figure out how on earth you’re going to pay for it. Call (904) 810-2097 today or visit us online to schedule a safe virtual or on-site tour. Now is the perfect time to explore all the benefits Florida and Villages of Seloy have to offer for your retirement pleasure.