Florida
Florida is a favorite among states for those who wish to downsize and retire. That’s because the sunshine state is one of the most tax-friendly in the nation.
While you won’t be paying any income taxes, you do have to watch out for sales taxes, which sit at around 6% on average. On the other hand, localities may add up to 2.5%. The Tax Foundation found that the average combined rate in Florida is 7.05%, which makes it rather average compared to numbers across the U.S.
You’ll pay extra taxes on clothes whereas groceries will be exempt. Likewise, prescription drugs will be exempt but you do have to pay for motor vehicle taxes and you may need to pay additional county taxes on the first $5,000 of purchase prices.
Florida is also middle-of-the-road when it comes to property taxes as the median rate is %830 per $100,000 of assessed home value. But, luckily, you don’t have to worry about inheritance or estate taxes.
