Florida Has No State Income Tax: What It Covers and What It Doesn't

Updated November 2, 2026 · By the TaxPro Florida team

Florida does not tax individuals' income. The Florida Constitution prohibits a state personal income tax, so wages, retirement income, Social Security, investment income and capital gains earned by Florida residents aren't taxed by the state. You still owe federal income tax, and Florida raises revenue through sales tax, property taxes and other taxes instead.

What "no state income tax" covers

Because there's no personal income tax, Florida residents don't file a state individual income tax return. That means no state tax on:

• Wages and salaries
• Self-employment and most pass-through business income reported on an individual's return (sole proprietors, partners, S corporation shareholders and LLC members taxed as partnerships)
• Pensions, 401(k) and IRA withdrawals
• Social Security benefits
• Interest, dividends and capital gains

Florida also has no state estate tax and no inheritance tax, and it repealed its intangible personal property tax (a tax on stocks, bonds and similar assets) effective in 2007.

Taxes Floridians still pay

Florida is a big tourism state, so visitors pay a meaningful share of sales and tourist taxes. Still, property taxes and insurance costs can be significant for homeowners, so don't assume "no income tax" means low total costs.

How to establish Florida residency (domicile)

If you're moving from a state with an income tax, what matters is your domicile: your true, permanent home, the place you intend to return to. Simply spending winters in Florida doesn't make you a Florida resident for tax purposes. Steps that help show Florida is your domicile:

1. Get a Florida driver's license. New residents are generally required to get one within 30 days of establishing residency. Surrender your old license.
2. Register and title your vehicles in Florida through your county tax collector. New residents have a short deadline after establishing residency or starting work.
3. Register to vote in Florida and cancel your old registration.
4. File a Declaration of Domicile with the clerk of the circuit court in your county. This sworn statement is optional, but it's useful evidence.
5. Apply for the homestead exemption if you own your home and it's your permanent residence.
6. Move the things that matter: your primary doctors, bank accounts, safe deposit box, pets, family heirlooms, religious and club memberships.
7. Update your address with the IRS, Social Security, your employer, financial institutions and insurance companies.
8. Update your estate planning documents under Florida law with a Florida-licensed attorney.

Watch out for your former state

High-tax states sometimes audit former residents who claim to have moved to Florida, especially high earners. Common issues include:

• Statutory residency rules: Some states, such as New York, can treat you as a resident for tax purposes if you keep a home there and spend more than a set number of days in the state (in New York's case, more than 183 days), even if you're domiciled elsewhere.
• Keeping a home in your old state: This isn't prohibited, but it invites questions about where you really live.
• Day counts: Keep records of where you spend each day: calendars, travel receipts, phone location history.
• Source income: Even after you move, your old state may tax income earned there, such as rental income from property located there or wages for work performed there.
• Year of the move: You'll likely file a part-year resident return with your old state.

If you have significant income or assets, a CPA, enrolled agent or tax attorney experienced with multistate residency can help you plan the move. See how to choose a tax professional.

Remote workers living in Florida

If you live in Florida and work remotely for a company based in another state, Florida won't tax your wages. Most other states only tax nonresidents on work physically performed within their borders, but a handful apply "convenience of the employer" rules that can tax remote employees of in-state companies. If your employer is located in a state with such a rule, ask a tax professional how it applies to you.

Does no income tax mean no state tax return?

For individuals, yes: Florida has no individual income tax return. Businesses are different. C corporations (and LLCs taxed as corporations) may need to file a Florida corporate income tax return, and businesses that sell taxable goods or have employees have sales tax and reemployment tax obligations.