Florida has fallen from grace as a ‘tax haven’ — prompting Lorraine English, 72, to maneuver from Bradenton, Florida, to Asheville, North Carolina, due to horrifying pure disasters and the rising value of homeownership within the state.
Marketed as a tax haven, Florida lures immigrants with guarantees of zero revenue tax and particular tax breaks that accrue to long-time owners. (1) It is a highly effective draw for residents of states with excessive revenue taxes, like California (as much as 13.3%) and New York (as much as 10.9%). (2)
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However storms have swept away a few of the monetary advantages of residing throughout the Sunshine State. On high of weathering a spate of pure disasters, Florida owners like English have been blindsided by different prices. One of many greatest charges: dwelling insurance coverage.
Revenue tax haven, insurance coverage hell
Florida is the costliest dwelling insurance coverage market (3) within the nation.
“Two years in the past, my owners’ insurance coverage with hurricane protection — not together with flood insurance coverage, which is a separate coverage — went as much as $7,000 a 12 months,” English instructed Enterprise Insider. (4)
How different states stack up: Assuming $300,000 of dwelling protection, the standard American pays $2,543. Insurance coverage.com says Florida residents pay $7,136 for equivalent protection. (5)
Florida dwelling insurance coverage has gone up due to insurance coverage fraud, inflation of building prices, and pure disasters, specialists say. (6)
“The final storm I went by way of in Florida was Hurricane Milton,” English stated. She spent $6,500 fixing injury to her pool cage and regarded herself “fortunate.”
Florida’s tax haven standing is enticing to residents in states with excessive revenue taxes. Kiplinger says a retiree incomes $70,000 per 12 months in New York may pay roughly $4,000 in state revenue tax on their retirement revenue, whereas shifting to Florida would remove that tax. (7)
How a lot of that financial savings is left after dwelling insurance coverage charges? For a coverage on a $600,000 home, the standard NY house owner pays $3,021. (8) The standard Floridian pays $13,729. Say you and your companion are saving $4,000 every due to zero revenue taxes. In case your family pays $8,000 much less for revenue taxes however pays $10,000 extra for dwelling insurance coverage, is it price it?
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Property taxes are rising
Florida has additionally been accumulating extra property taxes from residents. Some say it has been making housing much less inexpensive. The nonprofit Florida TaxWatch says authorities levies have greater than doubled during the last decade, quicker than the tempo of inflation and inhabitants progress mixed. (9)
Another excuse property taxes are rising: housing costs have spiked. House costs rose from about $250,000 to $375,000 in 2026 in comparison with the start of the pandemic, in keeping with Zillow. (10)
For property taxes, Florida ranks middle-of-the pack. Its efficient property tax fee of 0.79% is healthier than many states. (11) Since new owners from out-of-state do not instantly profit from property tax caps, the very best charges are most likely unique to native, long-time residents. (12) Florida property taxes are capped by the Save Our Houses Modification. (13)
English cited rising property taxes as one of many causes she left Florida. “…my property taxes have been about $3,000 a 12 months,” English stated. “Altogether, I used to be round $10,000 a 12 months only for insurance coverage and taxes.”
Residents migrate to avoid wasting
Different Floridians are leaving the state to keep away from rising payments, too.
Sydney Buckley and her husband, René Barajas Jr., moved from the West Palm Seaside space to Greenville, South Carolina, in 2025. The couple instructed the Wall Road Journal they could not discover any homes in Florida inside their finances. (14) In South Carolina, they discovered and purchased a $350,000 home.
The mortgage fee is barely $100 greater than they have been spending on lease for his or her condominium in Florida. The couple additionally stated they pay a lot much less property tax and insurance coverage than they’d have in Florida.
The couple aren’t the one ones leaving for calmer pastures. In 2024, a whopping 506,246 individuals moved from Florida to a different state. U.S. Census knowledge says high locations have been Georgia (52,371), Texas (52,219), North Carolina (33,591), New York (28,080), and Pennsylvania (25,048). (15)
Why these states: Georgia, Texas, and North Carolina rank as inexpensive housing markets. U.S. Information ranks Florida’s housing affordability at #44 out of fifty, barely behind New York. (16)
Florida stays a possible tax haven for households and a strong draw. However rising taxes and insurance coverage premiums should be thought of. If potential homebuyers add just one factor to their homebuying guidelines, let or not it’s affordable owners insurance coverage.
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Article Sources
We rely solely on vetted sources and credible third-party reporting. For particulars, see our ethics and guidelines.
Griffin Funding (1); TurboTax (2); Bankrate (3); Enterprise Insider (4); Insurance coverage.com (5),(8); SouthState Financial institution (6); Kiplinger (7); Florida TaxWatch (9); Zillow (10); Rocket Mortgage (11); Tax Basis (12); Pensacola Information Journal (13); The Wall Road Journal (14); U.S. Census Bureau (15); U.S. Information & World Report (16)
This text initially appeared on Moneywise.com beneath the title: Why one woman bolted from ‘tax haven’ Florida, and others are leaving too
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