The headline pitch for relocating to Florida is simple: no state income tax, warm winters, homestead protection. The actual financial math is more nuanced. Florida wins decisively on income tax and on aggregate property tax for long-term residents. It loses just as decisively on homeowners insurance, especially in coastal counties. Whether the move pays off depends on your income, your home value, where you are coming from, and where in Florida you land.
Use the calculator below to estimate the annual cost delta in dollars. Reference data is drawn from Tax Foundation rate tables, Insurance Information Institute premium data, and Florida Realtors median sale prices.
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Your Florida move, in actual dollars
New York → Tampa Bay (Hillsborough)
Estimates only. Sales tax, vehicle insurance, electricity, healthcare, and other line items not included. See the sections below for those line items in detail.
State income tax: what you actually save
| Origin state | Top marginal rate | Where the top kicks in | Annual savings on $150k income |
|---|---|---|---|
| California | 13.30% | $1M+ | ~$8,200 |
| New York (state only) | 10.90% | $25M+ | ~$7,400 |
| New York City (city + state) | ~14.78% | effective | ~$9,800 |
| New Jersey | 10.75% | $1M+ | ~$7,100 |
| Massachusetts | 9.00% | $1M+ surtax | ~$6,300 |
| Connecticut | 6.99% | $1M+ | ~$5,200 |
| Illinois (flat) | 4.95% | all income | ~$5,800 |
| Pennsylvania (flat) | 3.07% | all income | ~$3,600 |
| Michigan (flat) | 4.05% | all income | ~$4,700 |
| Ohio | 3.50% | $100k+ | ~$3,800 |
| Florida | 0.00% | — | baseline |
Property tax: a wash or a win?
Property tax math depends heavily on county-level millage rates, the homestead exemption, and the Save Our Homes assessment cap. New owners pay near the effective Florida average; long-term owners pay materially less because Save Our Homes caps assessment growth.
| Location | Effective property tax rate | Annual tax on a $500k home | Notes |
|---|---|---|---|
| New Jersey | 2.21% | $11,050 | Highest in U.S. |
| Illinois | 2.08% | $10,400 | Highest in Midwest. Cook County higher. |
| New York (state-wide avg) | 1.40% | $7,000 | NYC much higher with NYC property taxes. |
| Texas | 1.60% | $8,000 | No income tax, but property tax is high. |
| Florida (statewide avg) | 0.83% | $4,150 | Before homestead exemption. |
| Florida (with homestead) | ~0.75% | $3,750 | After $50k exemption on most taxing. |
| California | 0.71% | $3,550 | Prop 13 caps assessment growth. |
Homeowners insurance: the cost that surprises most movers
| State | Average HO-3 premium | Vs national avg | Driver |
|---|---|---|---|
| California | $1,400 | −45% | Mild climate ex-wildfire counties |
| Illinois | $1,500 | −41% | Continental climate, low catastrophe load |
| Massachusetts | $1,700 | −33% | Some coastal exposure |
| New York | $1,800 | −29% | Coastal Long Island, hurricane fringe |
| National average | $2,550 | baseline | — |
| Texas | $3,400 | +33% | Tornado, hail, gulf hurricane |
| Florida (statewide) | $5,300 | +108% | Hurricane reinsurance + carrier exits |
| Florida (Monroe County / Keys) | $10,400 | +308% | Direct hurricane exposure, surge |
Other line items that move the answer
- Vehicle registration and insurance. Florida vehicle insurance averages run ~30% above national average (PIP, no-fault, high-uninsured-driver share). Registration is relatively cheap.
- Electricity. Florida runs the AC year-round and Florida Power and Light residential rates average ~13.5¢/kWh. A typical 2,200 square-foot single-family Florida home uses 14,000 kWh/year, roughly $1,900 in electricity, ~40% above northeastern equivalents.
- Sales tax. Florida state sales tax is 6%, with county discretionary add-ons (Miami-Dade 7%, Orange 6.5%, Pinellas 7%, Hillsborough 8.5% in 2026). New York City and most California metros run materially higher.
- Estate and inheritance tax. Florida has none. New York, Illinois, and Massachusetts still impose estate tax. For high-net-worth households, this is the largest single financial reason to establish Florida residency.
- Healthcare. Florida private insurance premiums are roughly the U.S. median. Medicare eligibility transfers without issue. Snowbirds who keep a northern primary residence may need to coordinate Medicare Advantage networks across two states.
Establishing Florida residency without an audit
High-tax states audit residency changes aggressively. The IRS does not — but New York, California, New Jersey, and Illinois all run dedicated residency audit programs. To establish Florida residency cleanly:
- File a Declaration of Domicile in the Florida county where you reside, recorded with the clerk of court. This is the single most defensible piece of paper in a residency audit.
- Obtain a Florida driver license within 30 days of taking up residence. Surrender your prior state license.
- Register to vote in Florida and cancel registration in your prior state.
- Apply for the Florida homestead exemption on your primary Florida residence by March 1 of the year following purchase.
- Spend the majority of the calendar year in Florida. New York audits track day-by-day presence using credit card records, EZ-Pass data, and phone tower pings. Aim for 183+ days in Florida and document the rest.
- Move primary financial accounts to Florida. Bank, brokerage, attorney, physician, accountant — all Florida-domiciled records strengthen residency.