Ah, Florida. For many, it’s the perfect place to retire — with beaches and retirement communities and lots of airports, making it easy to get in and out of there. Florida isn’t perfect, though. It offers both upsides and downsides to whoever retires there. Let’s take a look at some.
First, there’s the weather, which is both a plus and a minus, depending on whom you ask and on the time of year. Yes, it’s blissfully free of snow in winter, but summers can see temperatures in the 90s or higher with high humidity, making it feel like 100 or more. Florida is often a destination for hurricanes, too.
How much is the average home insurance in Florida?
Meanwhile, the state with the highest average home insurance cost in 2023 was Florida, at $10,996 — with that figure expected to rise to $11,759 in 2024, per Insurify. Then there’s flood insurance, which costs many Floridians, on average, between about $500 and $1,500 or more per year, depending on where they live. These rates are likely to rise over time, too, potentially significantly.
How much income tax do you pay in Florida?
Taxes are another major concern for many retirees, and Florida is strong on this count as it levies no income tax. That means you forfeit none of your earnings, Social Security benefits, IRA and 401(k) withdrawals, or even lottery winnings to the state. (Federal tax rates still apply, of course.) Florida also has no estate or inheritance tax, but it does have a 6% state sales tax, which rises to 7%, on average, when you add local sales taxes. That even applies to vehicles, so a new $30,000 car might cost you $2,000 or more in taxes.
If you’re thinking of retiring to Florida, read more about what it does and doesn’t offer. Think about your particular lifestyle, too, and what it might cost in Florida. If you want to own a pool, know that it can be costly to clean and maintain it. It can be smart to rent a place there for a few months or a year, to really try it out before committing.
The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
The $22,924 Social Security bonus most retirees completely overlook
Offer from the Motley Fool: If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
View the “Social Security secrets” ›
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.