I've been looking into what's actually changed for retirees in Florida heading into 2026, and honestly, the tax situation here is still pretty interesting if you understand what's really going on.

First thing people always ask me: does Florida tax retirement income? Short answer - no. No state income tax, no estate tax, no inheritance tax. That's the headline that keeps people moving here. But here's what most people miss - the real savings come from understanding the details.

The homestead exemption is huge and it's getting better. If you own your home in Florida, you can knock $50,000 off your property's assessed value, which directly cuts your property taxes. What's changed is that this exemption is now tied to inflation, so as prices keep rising, your exemption grows with it. For someone on a fixed income, that compounds into real money over time.

Now, if you're wondering does Florida tax retirement income from IRAs specifically - the answer is still no on the state level. But there's a federal play here that matters. Starting in 2025, retirees could donate up to $108,000 per year from an IRA to charity without it being taxable. That's up from $105,000, and it keeps adjusting for inflation. The thing is, these qualified charitable distributions don't count as income and they satisfy your required minimum distributions. So if you've got substantial IRA balances and care about giving back, this is basically free tax planning.

The inherited retirement account rules got locked in recently too. That 10-year rule for inherited IRAs and 401(k)s - it's now final. If you're leaving these accounts to adult kids or grandkids, they've got to drain them within 10 years, which could hit them with a bigger tax bill. Worth reviewing your beneficiary designations if this applies to you.

Here's where it gets interesting for wealthier retirees: federal estate and gift taxes. Right now you can transfer $10 million tax-free in your lifetime. But that's set to drop to $5 million at the end of 2025 unless Congress extends it. That's a massive difference if you've got significant assets. A lot of high-net-worth people in Florida have been making moves early to lock in the current rates.

One more thing on whether does Florida tax retirement income - Social Security is completely off the table here at the state level. Federally, there's been talk about changes, but Florida residents don't have to worry about state taxes on it regardless. That's a huge advantage for people living primarily on Social Security.

Bottom line: Florida's tax setup for retirees is genuinely solid, but it's not passive. You need to understand the moving pieces - homestead adjustments, charitable strategies, inheritance planning, and what's happening at the federal level. The state won't tax your retirement income, but being strategic about how you structure that income can make a real difference in what you actually keep.