What taxes can I expect to pay?

One of the great things about Florida is no income tax. State sales tax is set at six percent, with local option taxes of one percent that are added by county or community. By law these added revenues only improve infrastructure such as roads and schools. Tourism communities sometimes have what is called a “bed tax,” or surcharge, which is used to upkeep community facilities such as beaches, parks or even the chambers of commerce which sent you information about your new home.

Florida does have property taxes. They are assessed annually and due by November 1. Property taxes will vary by county and municipality.

Florida has no inheritance, gift nor state estate tax, but does have an intangible tax on stocks, bonds and receivables. Since taxes vary by state, one’s inheritance worth may be impacted if tax rates are greater in one state, versus the other. Florida requires estates to file if they are subject to Federal Income Tax (the current threshold is a net worth of $2 million). For many retirees estate taxes may not be an issue, but Florida’s lack of them may be appealing. Take time to consult your financial professional to best plan for your retirement.

What’s a homestead and why would I exempt it?

A homestead in Florida (by definition your full-time, legal residence in the state) is allowed exemptions for a portion of property taxes. To qualify for the exemption, you cannot own other residential property. The base exemption is $25,000 of the assessed value of your property. For example, if your homestead is assessed at a value of $85,000, you will pay property tax on $60,000. Additional exemptions are provided as well—including $5,000 for partially disabled veterans, full exemption for fully and permanently disabled veterans, $500 for widows or widowers (which is revoked upon remarriage) and $25,000 for residents more than 65 years of age.

You must file for exemptions annually between January 1 and March 1. The initial exemption application must be made in person, with documentation, at the local property appraiser’s office. The appraiser’s office staff will help determine? qualifying exemptions. Property taxes statewide are due by November 1.

Do I have to get a new driver’s license and license plate?

Yes. Florida law requires new residents to register vehicles and obtain new driver’s licenses within 10 days of a move inside the state, and within 30 days for new residents. Failure to do so will result in traffic tickets and fines. It may also complicate your homestead exemption application. (The first thing the property appraiser’s office will probably ask you for is your Florida driver’s license.) Florida also requires insurance on any registered vehicle in the state.

When you go to the license bureau in your new community, take proof of insurance, the vehicle identification number (VIN, commonly found on your dashboard as a series of numbers and letters, also on your prior registration) and proof of residency with you. The tax collector’s office will be where you register your vehicle, and they will require the same. One benefit of Florida residency—unlike other states there is no emissions testing on vehicles.