Living in Florida offers some amazing benefits during your retirement years – sun, sand, and surf, but for people ready to embark on retirement, there's something that could be even better:
Amazing tax benefits.
Our REALTORS® know many different factors go into deciding where to call "home." When you're ready to retire, you have more options than you've ever had before. The Sunshine State is unparalleled when it comes to helping older residents get more from their retirement budget by making tax benefits as easy as can be. Let's look at some benefits that are just as attractive as the warm weather:
- No State Income Tax
Many retirees continue to work part time. In many places, state income tax will take anywhere from 6% to 10% of your money every year. Not so for Florida, which is one of the few states with no state income tax. Only seven U.S. states have no income tax, and out of all of them, Florida has some of the best "quality of life" factors – especially for seniors.
- Low Average Sales Taxes
Tax revenue needs to come from somewhere. Sales tax is where Florida makes up on its absence of income tax, but the state rate is just 6%, middle of the road for sales tax. Relatively few towns and cities in Florida impose any additional sales tax (although some go as high as 2.5%), and there are opportunities to make tax-exempt purchases throughout the year.
- Social Security is Tax Exempt
Not only is Social Security income tax exempt in Florida, but it also will not take a cut from any of your retirement income. That includes savings and investment vehicles like the Individual Retirement Accounts (IRA), private or public pension funds and 401(k) accounts. Florida is one of 37 states that does not tax Social Security, but only a handful don't tax any retirement income.
- Affordable Cost of Living
There are condos and smaller homes located nearby those refreshing sea breezes. The overall cost of living, including your groceries and other essentials, is middle of the road compared to the whole country.
- Extra Exemptions Aplenty
There are plenty of other exemptions retirees may be able to enjoy, although some do require you to be a Florida resident for an extended time. The crown jewel of Florida taxes is the Homestead Exemption, which allows elders who've resided in Florida for several years to claim an additional exemption up to $50,000 from certain towns, cities, and counties.
Many home buyers discover Florida is the perfect place to retire. Whether you're looking at Bradenton homes for sale or further south at Sarasota homes for sale, the weather is mild, daily living costs are modest, and world-class amenities provide for an excellent quality of life. Many seniors put off downsizing or making the "big move" because it seems like such a hassle, but our agents have the years of experience and unbeatable customer service that can help you live the lifestyle of your dreams. To find out more, contact us today.