New York, New Jersey & Pennsylvania to Florida: The Real Tax Math
By Darlene Cutter, REALTOR® | Continental Country Club, Wildwood, FL
Everyone who calls me about relocating from the Northeast brings up taxes within the first five minutes. And they should — because for most retirees and pre-retirees moving from New York, New Jersey, or Pennsylvania to Florida, the tax picture is the single most compelling financial argument for making the move.
But the numbers I hear quoted are often vague. "Florida has no income tax." "You'll save a ton on property taxes." "My accountant said it's a big deal."
All of that is true. But let me give you the actual math — specific numbers, real rates, and a side-by-side comparison for each state — so you can see exactly what's at stake for your situation.
Important: I'm a Realtor, not a CPA. These figures are based on publicly available 2026 tax data and are intended to give you a clear picture of the landscape — not as personalized tax advice. Before you make any decisions, sit down with a tax professional who understands interstate relocation.
Florida's Tax Advantage: The Foundation
Before we look at the state-by-state comparisons, here are the Florida facts that apply regardless of where you're coming from:
- Zero state income tax. Florida has no personal income tax — not on wages, not on retirement account withdrawals, not on investment income, not on pension distributions.
- Social Security is untaxed. Florida does not tax Social Security benefits at the state level.
- Low property taxes. Florida's statewide average effective property tax rate is approximately 0.86% — well below the national average of 1.1%, and a fraction of what most Northeast homeowners pay.
- Homestead Exemption. Florida residents who use a home as their primary residence qualify for a $25,000 Homestead Exemption on assessed value, with an additional $25,000 for assessed values above $50,000 (excluding school taxes). This meaningfully reduces the property tax bill.
- Save-Our-Homes cap. Once established as a Florida homesteaded resident, your property's assessed value for tax purposes can only increase by 3% per year or the rate of inflation (whichever is less), regardless of market appreciation. This is one of the most underappreciated long-term financial benefits of Florida residency.
- No estate or inheritance tax. Florida has neither.
Now let's look at what you're leaving behind.
If You're Moving from New York
State Income Tax
New York State has nine progressive income tax brackets ranging from 3.9% to 10.9% for tax year 2026. Most middle-income retirees fall in the 5.5%–6% range on their state income.
And if you lived in New York City? Add a city income tax on top of the state rate. NYC residents pay an additional 3.078% to 3.876% city income tax — making the combined New York State plus NYC income tax rate one of the highest in the country, potentially reaching 14.776% for high earners.
The real-world numbers for a $75,000 retirement income:
| New York State (non-NYC) | New York City resident | Florida | |
|---|---|---|---|
| State income tax | ~$4,100 | ~$4,100 | $0 |
| City income tax | $0 | ~$2,300 | $0 |
| Total state/local income tax | ~$4,100 | ~$6,400 | $0 |
Estimates based on 2026 NY state brackets, married filing jointly. Excludes federal tax.
Property Taxes
New York State's average effective property tax rate is approximately 1.54% — significantly above the national average. But rates vary enormously by county. Westchester County, Nassau County, and Rockland County consistently rank among the highest-taxed counties in the country.
On a $400,000 New York home, you might be paying $6,000–$10,000 or more per year in property taxes.
On a $250,000 home in Continental Country Club, at Florida's average 0.86% rate with the Homestead Exemption applied, your annual property tax bill might run $1,500–$2,000.
Annual property tax savings on a comparable home: potentially $4,000–$8,000+
Combined Annual Tax Savings: New York to Florida
For a typical retired couple with $75,000 in annual income and a $350,000 home, moving from the New York suburbs to Continental Country Club could realistically save $6,000–$10,000 per year in combined state income and property taxes.
Over ten years, that's $60,000–$100,000 staying in your retirement account.
If You're Moving from New Jersey
New Jersey presents perhaps the most dramatic tax contrast of all three states. It combines a top income tax rate of 10.75% with the highest property taxes in the United States. For retirees, it is an extraordinarily expensive state to age in place.
State Income Tax
New Jersey has progressive income tax brackets reaching 10.75% on income over $1 million. For most retirees, the relevant range is the 5.525%–6.37% bracket, which applies to income between $40,000 and $500,000.
At $75,000 in retirement income, a New Jersey filer pays approximately $3,200–$3,800 in state income tax. At $100,000, that figure climbs to roughly $4,800–$5,500.
New Jersey does not tax Social Security benefits for households earning $100,000 or less in gross income — a meaningful exemption that Florida matches and extends (Florida exempts Social Security regardless of income level).
Property Taxes
This is where New Jersey's cost truly becomes visible. The statewide average residential property tax bill in New Jersey reached $9,898 in tax year 2024 — the highest state average in the country. New Jersey's effective property tax rate of approximately 2.23% is the highest in the United States.
County averages vary widely. Bergen County averages over $14,000 per year. Morris County, Essex County, and Monmouth County are not far behind.
On a $400,000 New Jersey home, annual property taxes of $8,000–$12,000 are common. In upscale municipalities, they routinely exceed $15,000–$20,000.
On a $250,000 Florida home with the Homestead Exemption, you're looking at $1,500–$2,000.
Annual property tax savings alone: $6,000–$10,000+ for most NJ homeowners
The New Jersey Inheritance Tax
One more New Jersey cost that retirees frequently overlook: New Jersey has an inheritance tax that applies to beneficiaries who are not spouses or direct descendants — siblings, nieces, nephews, and unrelated beneficiaries can face 11%–16% inheritance tax on assets received. Florida has no inheritance tax.
Combined Annual Tax Savings: New Jersey to Florida
For a retired couple with $75,000 income and a $350,000 home, moving from New Jersey to Continental Country Club could realistically save $8,000–$14,000 per year in combined state income and property taxes.
That's a number that makes the moving truck cost look trivial.
If You're Moving from Pennsylvania
Pennsylvania presents a different picture from New York and New Jersey. Its income tax burden is lower, and its Social Security treatment is actually quite generous — the state does not tax Social Security or most retirement income. But property taxes tell a different story.
State Income Tax
Pennsylvania has a flat 3.07% state income tax rate. Most retirement income — including Social Security and pensions — is exempt from Pennsylvania income tax. IRA distributions and 401(k) withdrawals, however, are taxable in Pennsylvania (though not in New Jersey or New York for certain categories).
For retirees drawing primarily from retirement accounts, Pennsylvania's income tax advantage over Florida is smaller than the New York or New Jersey comparison. But for those taking 401(k) or IRA distributions, the 3.07% flat rate still produces a real savings when moving to Florida.
At $75,000 in taxable retirement income (including IRA/401k distributions), the Pennsylvania income tax is approximately $2,300. At $100,000, approximately $3,070. In Florida: $0.
Note that some Pennsylvania municipalities charge local earned income taxes in addition to the state rate. Philadelphia's local wage tax, for example, adds another 3.75% on top of the 3.07% state rate — though most of Darlene's PA clients come from the suburbs, where local rates are lower.
Property Taxes
Pennsylvania's effective property tax rate is approximately 1.26% to 1.5% of assessed value. County rates vary considerably — Philadelphia County, Montgomery County, Chester County, and Bucks County all carry meaningful property tax burdens.
On a $350,000 Pennsylvania home, annual property taxes might run $4,400–$5,250.
On a comparable Florida home with the Homestead Exemption, $1,500–$2,200.
Annual property tax savings: $2,000–$4,000+ for most PA homeowners
Combined Annual Tax Savings: Pennsylvania to Florida
For a retired couple with $75,000 in taxable income and a $300,000 home, moving from Pennsylvania to Continental Country Club could realistically save $4,000–$6,000 per year in combined income and property taxes.
The Full Picture: A Side-by-Side Comparison
| New York (suburbs) | New Jersey | Pennsylvania | Florida (CCC) | |
|---|---|---|---|---|
| State income tax rate | 5.5%–6.85% | 5.5%–6.37% | 3.07% flat | 0% |
| NYC/local income tax | Up to 3.876% | None | Varies by municipality | None |
| Property tax rate (avg) | ~1.54% | ~2.23% | ~1.26%–1.5% | ~0.86% |
| Social Security taxed? | No | No (under $100K AGI) | No | No |
| Estate/inheritance tax | Estate tax (NY) | Inheritance tax | Inheritance tax | None |
| Homestead protection | Limited | Limited | Limited | Strong (Save-Our-Homes) |
One Important Step You Must Take
Tax savings from moving to Florida are not automatic. You have to establish genuine Florida residency — and do it properly.
To establish Florida domicile, you should:
- Get a Florida driver's license
- Register your vehicle in Florida
- File a Declaration of Domicile with the Sumter County Clerk's office
- Update your voter registration to Florida
- Spend at least 183 days per year in Florida
- Update your will, trust, and financial accounts to reflect your Florida address
- Sever ties to your prior state — sell or transfer your northern home, close bank accounts there if possible, and avoid maintaining a "permanent" residence in the old state
New York in particular is aggressive about auditing former residents who claim Florida domicile while maintaining significant ties to New York. If you have a co-op or second home in New York, talk to a tax attorney before you move.
Let's Talk About Your Specific Situation
Every relocation is different. The tax math above gives you the framework — but your actual savings depend on your income sources, your home values, your counties, and your personal financial picture.
What I can tell you with certainty, after fifteen years of watching buyers move from New York, New Jersey, and Pennsylvania to Continental Country Club, is this: virtually every one of them is surprised by how much they save. The numbers on paper become very real when you look at your first Florida tax return.
Ready to start the conversation? Email me at darlenecutter@darlenecutter.com or call 814-720-5356. I'm available seven days a week — and I'm happy to connect you with a CPA who specializes in Northeast-to-Florida relocations.
Darlene Cutter is a REALTOR® and 15-year Continental Country Club resident with 30+ years of real estate experience in Sumter County, Florida. Licensed under Four Star Home Brokers Inc. (License #SL3105424). Tax figures cited are from publicly available 2026 sources and are for informational purposes only — consult a licensed tax professional before making relocation decisions.
Ready to search for homes? Browse available listings in Continental Country Club and Sumter County, or learn more about relocating from the Northeast to Florida.
Frequently asked questions about Northeast-to-Florida taxes
Does Florida have a state income tax?
No. Florida has zero state income tax — not on wages, retirement account withdrawals, pensions, investment income, or Social Security. This is one of the primary financial reasons retirees relocate from New York, New Jersey, and Pennsylvania to Florida.
How much do you save on taxes moving from New Jersey to Florida?
A retired New Jersey couple with $75,000 in annual income and a $350,000 home can realistically save $8,000–$14,000 per year by moving to Florida, combining state income tax savings (NJ rates up to 10.75%) and property tax savings (NJ averages 2.23% vs Florida's 0.86%).
How much do you save on taxes moving from New York to Florida?
A typical retired couple moving from New York suburbs to Florida can save $6,000–$10,000 per year in combined state income and property taxes, based on 2026 tax rates.
Does Pennsylvania tax retirement income?
Pennsylvania does not tax Social Security or most pensions, but does tax IRA and 401(k) distributions at its flat 3.07% rate. Florida taxes none of these income types at the state level.
What do I need to do to establish Florida residency for tax purposes?
To establish Florida domicile you should get a Florida driver's license, register your vehicle, file a Declaration of Domicile with the county clerk, register to vote in Florida, spend at least 183 days per year in the state, and update your legal and financial documents to your Florida address. Consult a tax professional before relying on Florida residency to eliminate prior-state tax obligations.
Does Florida have an inheritance tax?
No. Florida has neither an estate tax nor an inheritance tax. New Jersey has an inheritance tax of 11–16% on assets passed to siblings, nieces, nephews, and unrelated beneficiaries. New York has an estate tax.