Moving to Florida to Save on Taxes? Be Prepared For a Sticker Shock. Although Florida is one of the few states that has no income tax, high prices for insurance, housing and healthcare could mean that residents don't save as much as they think.
By Madeline Garfinkle •
Opinions expressed by Entrepreneur contributors are their own.
For some Americans, Florida is as close to paradise as it gets: palm trees, warm weather, expansive beaches and of course, no income tax.
Florida's population grew the fastest of any state in 2022, according to data from the Census Bureau, signaling that more Americans are flocking to the Sunshine State for year-round warmth and dreams of saving thousands a year on taxes. However, when taking into account other costs, residents might not be saving as much as they think — if at all.
As more people have moved to Florida over the past several years, housing prices have surged, and income hasn't kept up. In 2022, five of the 20 most competitive cities for housing in the U.S. were in Florida, with Miami coming in at number one, according to data from RentCafe.
"There's just no way for people living here to afford it — the salaries that they pay here don't add up to the cost of rent," Nicole Panesso, a former Florida resident, told Insider.
Related: Millions of People Are Still Moving to Florida. They Might Regret It.
Additionally, Florida is the fourth most expensive state for healthcare in the U.S., according to a Forbes analysis, and those with employer-provided family health coverage pay more than $7,000 a year on average, the highest premium of any state. The high rates can be partly attributed to the fact that fewer Florida employers offer insurance than in other states, according to a study by WUSF Public Media.
And the bills don't stop there: Florida's cities aren't typically walkable, making buying and maintaining a car almost mandatory. Floridians pay more than almost any other residents in the country for property insurance and car insurance, according to Insider.
Moving to Florida can still provide a more affordable cost of living, but it all depends on costs as compared to one's current city or state, employment opportunities and housing budgets.
