Florida

Moving from Maine to Florida would LOWER your total state and local tax burden from 12.4% of income to 9.1% of income — a drop of -3.3 pts. On a $100K household budget, that is roughly 3300 in annual savings across income, sales, property, and other taxes combined.

Florida has NO state income tax on wages, compared to Maine's top rate of 7.15%. High earners typically save thousands per year on wage income by moving. Note that property tax or sales tax may be higher in Florida to offset.

Florida state sales tax is 6.00%. With average local add-ons, the combined rate is 7.02%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Florida median effective property tax rate is 0.71% of home value. On a $400,000 home, that is roughly $2,840/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Florida has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Florida: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are not taxed. Since Florida has no state income tax, no state-level tax applies to any retirement income.

Florida capital gains treatment: No state capital gains tax (no state income tax). Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Florida gas tax is 39.0¢/gal — 9.0¢/gal higher than Maine's 30.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Florida residency rules: Domicile + 183+ days. Declaration of Domicile form strengthens claim. No statutory residency rule since no income tax. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Florida recent tax law changes: Property insurance crisis continues to affect costs. No income tax changes. Florida remains top inbound migration state.

For the most current tax information in Florida, visit the official source at https://floridarevenue.com/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.