Florida Retirement Income Tax 2026: No State Tax on RMDs, IRAs, and 401(k)s

Florida imposes no personal income tax under Article VII of the Florida Constitution — and that applies fully to retirement income. A retiree taking $150,000 per year from a traditional IRA owes Florida $0. The same retiree in California owes roughly $11,000–$14,000 in state tax on that same distribution. Federal income tax applies in both states. Here's what Florida retirees actually owe, what doesn't get them, and what strategies matter when state taxes are already zero.

What every income type costs in Florida vs. a high-tax state

The comparison below uses California as the benchmark because California is the most common high-tax state retirees move from. Minnesota and Oregon have no retirement income exemption and rates of 9.85% and 9.9% respectively — their numbers look similar to California at most income levels. New York offers a $20,000 per-person exclusion and rates up to 10.9% on the remainder.

California estimates use approximate 2026 FTB-indexed brackets for a single filer. Married filing jointly savings are larger. Federal taxes are identical for Florida and California residents at the same income level.

Florida vs. California tax savings calculator

Enter your retirement income to see your Florida state tax bill ($0) and compare it to what the same income would cost in California. For comparisons with New York, Minnesota, Oregon, or other states, use the all-50-states retirement income tax calculator.

What Florida retirees still owe: federal income tax

Florida's zero state income tax rate does not affect your federal tax bill — every traditional IRA distribution, 401(k) withdrawal, and taxable RMD is still ordinary income at the federal level, taxed at 2026 federal brackets ranging from 10% to 37%. For a married couple taking $150,000 in annual RMDs, the federal tax bill runs roughly $18,000–$22,000 depending on Social Security income and deductions. Florida changes none of that.

This means the planning strategies that matter for Florida retirees are exclusively federal:

• IRMAA Medicare surcharges — triggered by income in any state. A Florida retiree with $180,000 MAGI faces the same Medicare surcharges as a California retiree at the same income.
• Social Security taxation — the provisional income formula applies identically in Florida. RMDs that push you past $34,000 (single) or $44,000 (MFJ) cause up to 85% of SS to be taxable at the federal level.
• The 0% capital gains rate — available to Florida retirees in lower federal brackets. With no state tax stacking on top of ordinary income, FL retirees can sometimes stay under the 0% LTCG threshold more easily.

→ Estimate your 2026 federal income tax on retirement income
→ IRMAA calculator: will your RMD trigger Medicare surcharges?

Strategies for Florida retirees with large IRAs

1. Roth conversions in Florida are the cheapest they'll ever be

Roth conversions are taxable events — but in Florida, they're taxable only at the federal level. A California retiree who converts $100,000 per year for 10 years at the 9.3% CA state rate pays approximately $93,000 in California taxes on those conversions — money that a Florida retiree doing the exact same conversions owes $0 on to any state.

For a Florida retiree with $2M–$5M in traditional IRAs, this means the pre-RMD Roth conversion window (ages 60–72) is particularly valuable. Each dollar converted reduces future RMD obligations permanently, and the conversion tax cost is minimized by Florida's zero state rate. Converting $200,000/year for 10 years while a Florida resident vs. after moving to Florida (from another state) saves roughly $18,600–$186,000 in state taxes depending on your prior state.

→ Roth conversions: the 60-73 golden window explained
→ How much should you convert each year? Sizing calculator

2. QCDs eliminate federal tax and IRMAA — state tax is already zero

Qualified Charitable Distributions allow IRA owners age 70½+ to donate up to $111,000 per year directly to charity in 2026. The QCD is excluded from federal gross income, reducing AGI, which in turn reduces taxable Social Security income, lowers IRMAA Medicare surcharge exposure, and reduces the federal tax bill directly. For a Florida retiree, the QCD has no state tax savings (because there are no state taxes to save) — but the federal savings remain substantial.

A Florida retiree making a $30,000 QCD saves approximately $6,600 in federal income tax at the 22% bracket, plus avoids potential IRMAA Tier 1 Medicare surcharges of $1,500–$2,400 per year. The combined value in Florida is purely federal — but that federal value is the same as it is in every other state.

→ QCD calculator: federal tax savings + IRMAA tier impact

3. The 0% capital gains rate is more accessible in Florida

Long-term capital gains are taxed at 0% federally for 2026 filers with taxable income up to $49,450 (single) or $98,900 (MFJ) — per IRS Rev. Proc. 2025-32.² California taxes capital gains as ordinary income at up to 13.3%, making the 0% federal rate largely irrelevant for CA residents facing 9–13% state tax regardless. Florida's zero state rate means the 0% federal capital gains window represents a true $0 combined rate.

For a Florida retiree with a taxable brokerage account holding appreciated securities, harvesting gains in years when RMDs and Social Security keep total taxable income below $98,900 (MFJ) results in zero federal and zero state capital gains tax. This is a meaningful advantage for tax-efficient portfolio management that doesn't exist in most high-tax states.

→ Capital gains tax rates in retirement: the RMD stacking calculator

4. Roth conversions should happen before moving from a high-tax state to Florida

If you currently live in California, New York, Minnesota, or another high-tax state and are planning to move to Florida for retirement, complete as many Roth conversions as possible after establishing Florida domicile — not before. Roth conversions are taxable in the year they occur in whichever state you reside at the time. A conversion completed while still a California resident is taxable at up to 13.3% California rate. The same conversion completed as a Florida resident costs $0 in state tax. This timing difference can save $50,000–$150,000 in state taxes for retirees with large conversion plans.

Florida property tax: what retirees need to know

Florida's "no income tax" status comes with a caveat: property taxes are a significant cost for Florida homeowners, averaging 0.83% of assessed value statewide but varying considerably by county. Three provisions protect Florida resident homeowners:

The SOH cap is the most powerful long-term benefit: a Florida retiree who purchased a home years ago at a low assessed value may pay property taxes far below what a new buyer would owe on the same home. The SOH cap is one reason Florida homeowners are often reluctant to move within the state — though portability allows carrying the benefit to a new Florida property.

Moving to Florida: how to establish domicile

For retirees relocating from California, New York, or another high-tax state, simply owning a Florida home is not enough to end the former state's right to tax your income. Domicile — your permanent legal home — determines which state can tax you. Changing domicile to Florida requires:

1. Physical move. Move to Florida and begin living there as your primary residence. This is the starting point, not just a formality.
2. Florida driver's license. Convert to a Florida DL within 30 days of establishing residence (Florida Statutes §322.031).
3. Florida vehicle registration. Re-register vehicles in Florida.
4. Florida voter registration. Register to vote in Florida (or at minimum, surrender out-of-state registration).
5. Update legal documents. Update will, trusts, powers of attorney to Florida jurisdiction. File a Declaration of Domicile with the county clerk (not required, but creates a dated record).
6. Notify financial institutions. Update address of record with custodians, banks, and employer for any remaining income sources.
7. Spend meaningful time in Florida. Living in Florida more than 183 days per year is a clear marker — below that, documentation of intent matters more. Keep a diary of days in each state if your former state is aggressive (California and New York both audit domicile changes).

New York's 183-day trap: Maintaining a permanent place of abode in New York and spending 183+ days in New York in a tax year creates "statutory residency" — New York taxes you as a full-year resident regardless of where you claim domicile. Former New Yorkers who own property in both states must track and document days carefully.

California's FTB audit approach: California has 18 months to audit a claimed domicile change and aggressively pursues high-income former residents. Establishing Florida domicile requires severing the primary indicators of California connection, not just spending time in Florida.

→ Complete relocation guide: domicile change, California FTB audit risk, and Roth conversion sequencing

Florida vs. other no-income-tax states

Property tax rates are statewide averages — Florida rates vary significantly by county and are mitigated by the homestead exemption and SOH cap for primary residents.

→ How all 50 states treat retirement income and RMDs
→ Interactive all-50-states retirement income tax calculator
→ California retirement income tax guide (if you're considering the move)
→ New York retirement income tax guide: $20K exclusion, city tax, and NY→FL relocation math

1. Florida Department of Revenue — Personal Income Tax. Florida imposes no personal income tax under Article VII of the Florida Constitution, which prohibits the legislature from levying such a tax. This applies to all retirement income including IRA distributions, 401(k) withdrawals, pensions, Social Security, and capital gains.
2. IRS Topic 409 — Capital Gains and Losses; 2026 preferential rates per IRS Rev. Proc. 2025-32. The 0% long-term capital gains rate applies for 2026 to taxable income up to $49,450 (single) / $98,900 (MFJ). The 3.8% NIIT applies to net investment income when MAGI exceeds $200K (single) / $250K (MFJ).
3. Florida Department of Revenue — Additional Homestead Exemptions for Persons 65 and Older. Standard homestead exemption: $50,000 ($25K applies to all levies; second $25K applies to non-school levies) per § 196.031, Florida Statutes. Senior additional exemption: up to $50,000 for qualified homeowners age 65+ with household adjusted gross income ≤ $38,686 (2026, indexed by CPI) per § 196.075, Florida Statutes. County option — apply with county property appraiser by March 1.
4. IRS Publication 590-B — Distributions from Individual Retirement Arrangements. Federal tax rules for IRA distributions. Florida residents are subject to the same federal rules as all other U.S. taxpayers; Florida's no-income-tax status affects only the state-level tax obligation.
5. 4 U.S.C. § 114 — Limitation on State Income Taxation of Certain Pension Income. Federal law prohibiting former-state income tax on qualified retirement income after a domicile change. Protects retirees who have genuinely changed domicile to Florida from their prior state's attempt to tax subsequent IRA and pension distributions.

Florida no-income-tax status verified against Florida Department of Revenue (June 2026). 2026 federal capital gains thresholds per IRS Rev. Proc. 2025-32. Florida homestead exemption income limit $38,686 per Florida DOR (2026, CPI-indexed). California comparison brackets use approximate 2026 FTB-indexed values consistent with our California guide.