Does Florida Tax Your Pension or 401(k)? What Retirees Keep in 2026

Does Florida tax your pension? No.

Florida doesn’t tax your 401(k) either, and it doesn’t touch your Social Security.

The state has no income tax at all, so there’s nothing for it to skim off your retirement income.

Snowbirds and native Floridians hang on to every dollar of that income at the state level in 2026.

Here’s what stays untaxed in Florida, and what still costs you.

Note: This is general information, not financial or tax advice. Tax rules and dollar amounts are subject to change, so confirm the current details with a professional.

Does Florida Tax Your Pension?

Florida doesn’t tax your pension, whether it comes from a company, a union, or a government job.

The state has no income tax on residents, so pension income never lands on a state return.

There’s no state return to file at all.

Not a dime.

A retired autoworker from Michigan and a former nurse from Pennsylvania both keep their full monthly pension once they call Florida home.

The same holds for a military pension, a federal civil-service pension, and a Florida Retirement System check that a retired teacher or deputy collects.

Florida treats them all the same, because it treats none of them as taxable income.

What About Your 401(k) and IRA?

Florida doesn’t tax withdrawals from your 401(k) or your individual retirement account (IRA).

Pull out $40,000 for the year or $4,000, and Florida’s cut is the same.

Zero.

Traditional or Roth, the state leaves your withdrawals alone.

Once you reach age 73, the federal required minimum distribution (RMD) rules force you to start pulling money out of a traditional 401(k) or IRA.

The state stays out.

Florida still won’t tax a penny of what those required withdrawals send your way.

The federal side is a different story.

Pull $30,000 from a traditional 401(k) and the IRS treats it as ordinary income, while the same $30,000 from a Roth you funded with after-tax dollars usually comes out clean.

Does Florida Tax Social Security?

Florida doesn’t tax Social Security, the same way it treats every other slice of retirement income.

Your benefit check shows up without a state deduction.

It doesn’t matter if you claimed at 62 or waited until 70, or whether your monthly benefit is small or near the maximum.

None from Tallahassee.

We walk through the details in our guide to whether Florida taxes Social Security, right down to the fine print.

The Federal Tax Bill Still Comes

Skipping state income tax doesn’t erase your federal income tax.

The IRS still taxes withdrawals from your pension, your traditional 401(k), and your traditional IRA as ordinary income.

It can also tax up to 85% of your Social Security, depending on your total income for the year.

How much of your benefit the IRS taxes depends on your combined income, which adds up your other taxable income, any tax-free interest, and half of your Social Security.

The bigger your pension and withdrawals, the more of your Social Security the IRS can reach.

Move from New York to Naples, and your federal return looks about the same.

It follows you anywhere.

Sales Tax and Property Tax

Florida pays for no income tax with sales tax and property tax instead.

The state sales tax rate is 6%, and most counties tack on a local surtax.

So a $1,000 purchase in a county with a 1% surtax rings up about $70 in sales tax.

That's the trade-off.

Property tax is where Florida retirees feel the squeeze.

The Homestead Exemption knocks up to $50,000 off the taxable value of your primary home, so the county taxes a $300,000 house on just $250,000.

A separate Save Our Homes rule then caps how fast that taxable value can rise, at 3% a year.

Some counties add a second exemption for homeowners 65 and older.

Groceries and prescription medicine escape Florida sales tax, so the weekly Publix run stays cheaper than the rate suggests.

Florida also dropped its old tax on stocks and bonds years ago, so your brokerage account faces no yearly state levy.

Insurance Runs High

Insurance is the bill that catches Florida newcomers off guard.

Hurricane risk makes homeowners insurance in Florida expensive, and insurers along the coast charge the most.

Auto insurance runs high too.

Ouch.

Budget for those premiums before you fall for a place near the water.

Flood coverage is its own separate bill, since a standard homeowners policy won't pay for rising water.

Many retirees find that their insurance costs eat into the money they saved on income tax.

No Estate or Inheritance Tax

Florida has no estate tax and no inheritance tax.

What you leave behind passes to your heirs without a state death tax.

Heirs keep more.

A federal estate tax can still apply to very large estates, but that reaches few families.

How Florida Compares

Florida sits in a small group of states with no state income tax, alongside Texas and Nevada.

Florida's in rare company.

Cross into a state like California or Minnesota, and those states tax that same 401(k) withdrawal as ordinary income, sometimes at double-digit rates.

The retiree who drives south with the same nest egg keeps thousands more each year once they settle in Sarasota or Fort Myers.

That gap is why so many people cross Florida's line for good.

Why Florida Has No Income Tax

Florida's constitution flat out bars a tax on the income of residents, so no future legislature can slip one in.

The state pays its bills another way.

Sales tax on everything tourists buy, from theme park tickets to rental cars, carries a big share of the load.

Tourists help foot the bill.

Roughly 140 million visitors a year spend money across Florida, and the state collects on much of it.

Is Florida Tax-Friendly for Retirees?

For most retirees living on a pension, a 401(k), and Social Security, Florida ranks among the friendliest states in the country.

Mostly, yes.

No state touches your retirement income, and nothing gets taken from your estate when you pass it on.

The catch is the cost of owning and insuring a home, which can swallow part of that break in hurricane-prone counties.

Run your own numbers on housing and insurance before you assume Florida is the cheapest place to retire.

Frequently Asked Questions

Here are the quick answers retirees search for most about Florida taxes.

Does Florida tax 401(k) withdrawals?

No. Florida has no state income tax, so 401(k) and IRA withdrawals aren't taxed by the state. You may still owe federal income tax on them.

Do you pay federal tax on a pension in Florida?

Yes. Florida doesn't tax your pension, but the IRS taxes most pension income as ordinary income no matter which state you live in.

Is Social Security taxed in Florida?

No. Florida doesn't tax Social Security benefits. The federal government can still tax up to 85% of your benefits, depending on your total income.

Does Florida have an estate or inheritance tax?

No. Florida has neither an estate tax nor an inheritance tax. Only very large estates may owe federal estate tax.

Does Florida tax any retirement income?

No. Florida has no state income tax, so pensions, 401(k)s, IRAs, and Social Security are all free from state tax. Retirees still pay federal income tax, plus Florida sales and property taxes.