Is Florida Still a Great Place to Retire? Here’s What to Know

Florida has long been a magnet for retirees, and for good reason: The state offers a winning combination of natural beauty, lifestyle perks, and financial advantages for seniors. With year-round warm weather and world-class golf courses, beaches, and fishing spots, Florida offers retirees the chance to enjoy outdoor activities in every season. 

Popular retirement cities include Miami, which attracts retirees seeking a vibrant, multicultural atmosphere, and Sarasota, which appeals to those preferring a more laid-back coastal lifestyle. The Villages, one of America’s largest retirement communities, offers many amenities and social clubs for those seeking an active adult lifestyle. But regardless of which part you choose to live in, you’ll enjoy one of the most compelling reasons to retire in Florida: the state’s tax-friendly environment. 

Cost of Living and Housing

Florida’s cost of living varies significantly by region, although recent years have seen sharp increases in housing costs across all regions.

As is the case in most states, living in a major metropolitan area is more expensive. For example, in Miami, housing prices exceed the national average. In Q4 2024, the median sales price in the U.S. was $419,200; in Miami-Dade County, the median sales price was $625,000. 

However, some coastal cities such as Jacksonville and Tampa offer home prices closer to or below the national median. In Tampa-St. Petersburg-Clearwater, the median listing price was $396,973 in January 2025; in Jacksonville, the median listing price was $385,000.

You can find even cheaper home prices if you’re willing to go inland—or move to a smaller community. The median listing price in Marion County was $303,575 in January 2025; in Alachua County, it was $334,700.

However, Carolyn McClanahan, a certified financial planner based in Jacksonville, warns that retiring to rural or smaller communities comes with tradeoffs.  

“The biggest complaint about the major retirement cities is that many retirees are snowbirds who leave in the offseason,” said McClanahan. “Between that and tourists, traffic and services in retirement cities can be feast or famine. Plus, long-term care services can cost more because there are more people to serve. However, rural areas have a very hard time delivering health and long-term care services, so I discourage retirees from moving to rural or small communities.”

While the state’s lack of income tax provides some relief, the median household income in Florida in 2023—$73,311—falls slightly below the national average of $80,610. Florida is also tied for seventh in terms of states with the greatest income inequality, according to data collected by Statista. This income disparity may be especially noticeable in popular retirement destinations, where an influx of wealthy retirees from higher-cost-of-living states has created pockets of affluence alongside populations of fixed-income retirees, who may struggle to keep pace with rising costs.

Florida housing prices–like housing prices across the country–have increased sharply since 2020. Many retirement communities and retirement-friendly metros are experiencing a housing crisis. Middle-income retirees, in particular, may find it challenging to find available housing in their price range.

Taxes

The state maintains a 0% state income tax rate, which means retirement income—including Social Security benefits, pension income, and distributions from retirement accounts, such as 401(k)s and IRAs—remain untaxed, effectively stretching retirement savings further. This law has cemented the state’s reputation as a tax haven for retirees.

This exemption means that retirees can withdraw from their retirement accounts without worrying about state-level tax implications. (Although, it’s important to remember that federal taxes still apply). For those with substantial retirement savings or pension benefits, these tax savings can amount to thousands of dollars annually compared to states that tax retirement income.

However, the state compensates for its lack of income tax through other revenue sources, which can impact retirees’ budgets. Property taxes vary significantly by county and can be substantial in highly desirable areas. Additionally, it’s worth noting the state’s general sales tax of 6% (which can reach 8.5% with maximum surtax) is above the national average.

While these costs don’t typically outweigh the benefits of zero state income tax, they should be carefully factored into retirement planning—especially for those on fixed incomes.

Climate and Weather

The southern region of Florida experiences a true tropical climate, while the north experiences subtle seasonal changes. Overall, the state enjoys warm temperatures year-round, with summer highs typically ranging from the mid-70s to the mid-90s Fahrenheit, while winter temperatures average between the mid-50s and mid-70s. 

Florida is especially vulnerable to climate-related risks, including hurricanes, flooding, and occasional tornado threats. As a result, homeowners face higher insurance costs in Florida, especially in coastal areas where hurricane insurance is essential. Insurance premiums have increased sharply in the state over the past few years. 

Flood insurance, which is required in some coastal areas of the state, can add thousands of dollars to annual housing costs. Even inland, some properties may require flood insurance, depending on elevation and their proximity to bodies of water. 

Retirees may face additional expenses related to the climate, including the need for impact-resistant windows or hurricane shutters in many areas, increased maintenance costs due to salt air and humidity in coastal regions, and the potential need for backup power systems during outages. 

Health Care and Senior Services

Florida’s health care landscape reflects its large senior population, offering world-class hospitals, specialists, and outpatient facilities. Several nationally ranked hospitals are located in Miami, including the University of Miami Health System and Baptist Health South Florida. Moffitt Cancer Center and Tampa General Hospital serve the Tampa area. In Orlando, the AdventHealth system and Orlando Health both offer comprehensive medical services and specialized geriatric care units. 

The state’s retirement communities have also evolved to include on-site health care delivery systems. These communities often feature integrated health care services, from primary care clinics to specialized rehabilitation facilities (at a cost). Additionally, Florida has developed an extensive network of assisted living facilities, skilled nursing homes, and memory care centers to accommodate varying levels of care. 

While the state’s overall health care costs tend to be lower than the national average in many areas, specialized care and certain medications can be more expensive. Medicare Advantage plans are widely available throughout the state, often with competitive premiums.

The state has also seen growth in concierge medical practices and specialized geriatric care centers, but these premium services often come with higher costs. For retirees with chronic conditions, Florida’s climate and health care infrastructure can be advantageous; there are numerous care centers for specific health conditions, including heart disease, cancer, and diabetes. 

The Bottom Line

Florida consistently ranks as one of America’s top retirement states because of its unique combination of financial, lifestyle, and health care advantages. For many, the state’s most compelling draw is its favorable tax structure, most notably its lack of state income tax. However, higher property taxes and insurance costs can offset these benefits—so consider your full financial picture before you commit to retirement in the Sunshine State.