Florida is attracting new residents with its sunny weather, vibrant communities, and tax-friendly policies. If you’ve recently moved to Plantation or are considering a relocation, here’s what you need to know about the tax advantages Florida offers.
1. No State Income Tax
Florida is one of nine states that do not impose a state income tax. This means more of your earnings stay in your pocket, whether you’re a high-income professional or a retiree living off investments.
- Example: A Plantation resident earning $150,000 annually saves about $7,000 compared to living in a state like New York.
2. Homestead Exemption for Homeowners
Florida offers a Homestead Exemption that reduces your property’s taxable value by up to $50,000.
- Pro Tip: File your application before March 1st of the year following your home purchase to qualify.
3. Lower Taxes on Retirement Income
Florida does not tax Social Security benefits, pensions, IRAs, or 401(k) distributions, making it a top destination for retirees.
4. Tax Implications of Moving
When you move to Florida, consider these tips:
- Out-of-State Income: Report income earned before your move on your previous state’s tax return.
- Domicile Declaration: Establish Florida residency by updating your driver’s license, voter registration, and mailing address.
FAQs
- What documents are required for the Homestead Exemption?
Proof of Florida residency, such as a driver’s license or voter registration, and your home’s deed. - Can I claim moving expenses on my federal return?
Moving expenses are no longer deductible for most taxpayers, except for active-duty military. - How do I prove Florida residency for tax purposes?
Update your state ID, voter registration, and file your federal taxes using your Florida address.
Florida’s tax benefits make relocating to Plantation a smart financial decision. For expert guidance on maximizing these benefits, visit our Plantation office or contact Polaris Tax & Accounting today.