“Florida has no personal state income tax, which can be very attractive, particularly to higher-income retirees, but “no income tax” and “lower cost of living” are not the same thing,” Nicole Brown, CEO of Pathways International Inc., a real estate and capital advisor, told Moneywise.
“The number that matters is net disposable income after the entire lifestyle is considered, not just the tax rate,” she noted.
Here’s what’s happening on the low-tax retirement destination front
The rebound move is alive and well in the Sunshine State, with just the same numbers of retirees entering and leaving Florida. According to data from HigherAHelper’s New Retirement Map, 45,696 Americans aged 65-or-over moved to Florida in 2025. Yet 44,881 retirees exited the state the same year, leaving Florida with an 815-retiree net gain for 2025.
No doubt, personal income flow plays a big role in who moves to a state like Florida and who leaves, retiree-wise. “The income issue is huge,” Brown noted. “Two retirees with the same net worth can experience a move very differently depending on whether their cash flow comes from Social Security, pensions, tax-deferred retirement accounts, taxable investments, real-estate income or some combination.”
What to do before making a move to a low-or-no tax state
If you’re thinking of moving to Florida or any other low- or-no-tax state, consider these things beforehand.
Factor in taxes right away
Brown said that someone generating significant taxable working or investment income may place a much higher dollar value on moving to a state without personal income tax than someone whose income receives better treatment in their original state.
“The numbers need to be personal to each person: identify what income is actually taxable, where it will be taxed, when it will be withdrawn and how residency affects it. Then compare that tax savings against the additional costs of living in the new state,” she stated.
Calculate cost of living in a new state like it’s a stock or a mutual fund
One novel strategy is to treat relocation almost like calculating an investment. “Don’t ask, “How much will I save in state income taxes?” Ask, “What is my total annual cost of living before and after the move?,” Brown advised.
Start with taxes, but include a big list of other expenses. “Think housing costs, property taxes, homeowners and auto insurance, HOA or condo assessments, utilities, healthcare premiums and out-of-pocket costs, transportation, travel back to family, maintenance and the cost of replacing the lifestyle and support network you already have,” Brown noted
Florida has no personal state income tax, which can be very attractive, particularly to higher-income retirees. “But “no income tax” and “lower cost of living” are not the same thing,” Brown added. “The number that matters is net disposable income after the entire lifestyle is considered, not just the tax rate.”
Test your new state out in advance
Real estate experts advise renting for six to 12 months first, ideally in or near the community you’re considering. “Live in the target area during its worst season to experience real daily life, traffic, and climate realities before buying,” Kris Lindahl, founder at Kris Lindahl Real Estate, told Moneywise.
