How Florida taxes retirement income
Florida has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes Florida one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in Florida, at a glance
| Income type | Taxed by Florida? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.78% of home value |
Does Florida tax Social Security benefits?
No. Florida does not tax Social Security benefits. That follows automatically from having no state income tax.
Does Florida tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, Florida does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Florida taxation of retirement income (Social Security, pensions, 401(k)/IRA): Florida Department of Revenue / Taxation.