No state income tax
How Florida taxes retirement income
Florida has no personal income tax, so the state takes nothing from your Social Security, your pension or your withdrawals from a 401(k), 403(b), 457(b) or IRA. That holds no matter where the pension comes from: a Florida plan, another state’s teacher system, a company pension or the federal government.
Florida raises most of its money through sales tax and property tax instead. Homeowners get a homestead exemption on the assessed value of their primary home, and the Save Our Homes rule caps how fast that assessed value can rise each year, which helps retirees who stay put.
Federal income tax still applies everywhere. Your pension and traditional retirement account withdrawals are taxed by the IRS as ordinary income, and up to 85% of your Social Security can be taxable federally depending on your other income.
Florida public pensions
For the formula, payment dates and raises in your plan, see Florida FRS.
Questions
Does Florida tax pensions?
No. Florida has no personal income tax, so pensions of every kind are free of state tax.
Does Florida tax Social Security?
No. With no income tax, Social Security benefits are not taxed by the state.
If I move to Florida, can my old state still tax my pension?
No. Federal law (4 U.S.C. 114) bars states from taxing the pension income of people who no longer live there, including government pensions and most retirement plan payments.