Should you retire in Florida?

Ah, Florida. For many, it’s the perfect place to retire — with beaches and retirement communities and plenty of airports, making it easy to get in and out. Florida isn’t perfect, though. It offers both advantages and disadvantages to anyone who retires there. Let’s take a look at some.

First is the weather, which is both a plus and a minus depending on who you ask and the time of year. Yes, it is snowless in the 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 hurricane destination.

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Meanwhile, the state with the highest average cost of home insurance in 2023 was Florida at $10,996 — a figure expected to rise to $11,759 in 2024, according to Insurify. Then there’s flood insurance, which costs many Floridians an average of about $500 to $1,500 or more per year, depending on where they live. These rates are likely to increase over time, potentially significantly as well.

Taxes are another major concern for many retirees, and Florida is strong in this regard because it charges no income tax. That means you don’t lose any 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 has a 6% state sales tax, which rises to 7% on average when add local sales tax. This even applies to vehicles, so a $30,000 new car could cost you $2,000 or more in taxes.

If you’re considering retiring to Florida, read more about what it does and doesn’t offer. Also think about your particular lifestyle and what it might cost in Florida. If you want to own a pool, you know that cleaning and maintaining it can be expensive. It may be smart to rent a place there for a few months or a year to really try it out before committing.