Tax in Florida 2026: Florida continues to be one of the most tax friendly places in the US, especially for people who are retired or living on fixed income. One big reason is simple, the state does not charge any personal income tax. This means money from jobs, pensions, Social Security, and investments is not taxed by the state in 2026. Because of this rule many people choose to move to Florida to keep more of what they earn. This does not mean people living in Florida pay no taxes at all, because other taxes still play a role in daily life.
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Sales and Property Taxes
Sales tax is one of the most common taxes people notice in Florida. The state rate stays at 6%, but local areas can add up to 2% more, so most shoppers pay between 6% and 8% at the register. Some things are not taxed, like groceries and prescription drugs, which helps families save money. Florida also removed sales tax on items like baby supplies, dental care items, and emergency gear, and these breaks continue into 2026.
On top of that the state now permanently removes sales tax on some school supplies, clothes, and electronics, as long as they stay under certain price limits, such as clothes under $100 and electronics under $1,500.
Property tax is another cost many residents think about, especially homeowners. Florida does not have a single statewide rate, since counties set their own taxes, but the average effective rate is around 0.7% to 0.8%. Homeowners can use the homestead exemption, which usually lowers the taxable home value by up to $50,000. New rules have linked this benefit to inflation, so the savings may grow as living costs rise. Lawmakers are also talking about new plans for 2026 and the years after. One idea is to lower some property taxes for people who are 65 or older, mainly taxes that are not used for schools.
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Other Taxes
From late 2025 Florida stopped charging sales tax on commercial rent and this rule stays in place in 2026. This means shops and offices now cost less to rent, which makes Florida more attractive for companies.
The state still charges extra taxes on items like petrol, alcohol, and cigarettes, but these taxes are often lower than what people pay in many other states. Fuel taxes and road fees also remain, as they are used to fund highways and transport projects over the long run.
