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Florida Tax Guide: What Retirees Will Have to Pay (and What They Won’t)

May 10, 2023 · Taxes
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Are retirement income and pensions taxed in Florida?

Why do many retirees choose to spend their golden years in the Sunshine State? There are obvious reasons, like the great weather and a bevy of outdoor activities like fishing and golfing, but we shouldn’t overlook the hard-to-beat tax benefits of retiring to Florida as well.

So, the answer to the question above is no; retirement income isn’t taxed in Florida. Since the Sunshine State doesn’t have a personal income tax, distributions from 401(k)s, 403(b)s, IRAs, and pensions aren’t taxed at the state or local level.

In addition to these tax benefits for seniors, the cost of living in the Sunshine State is about the same as the national average.

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