Moving to Florida After Retirement: What Snowbirds and Retirees Need to Know Before Making the Leap
Florida retirement sounds perfect: sunshine, beaches, no state income tax, golf year-round, and a lifestyle that doesn't require a heavy winter coat.
But then the questions start:
What about hurricane insurance?
Which area of Florida is actually right for us?
Can we really afford to live there full-time?
How do we buy a house from 1,200 miles away without getting scammed?
Moving to Florida for retirement can be one of the best decisions you'll ever make, but only if you go into it with clear expectations and proper preparation.
This guide will walk you through exactly what you need to know, prepare, and consider before making Florida your permanent home.
The Cost of Living in Florida
Everyone knows Florida has no state income tax, which is a huge benefit for retirees.
But the cost of living includes more than just taxes. Let's break down the real numbers.
What You'll Save:
State Income Tax: $0
If you're currently paying 5-7% state income tax on $80,000 in retirement income, that's $4,000-$5,600 per year you'll save immediately by becoming a Florida resident.
Over 20 years of retirement, that's $80,000-$112,000 you keep instead of sending to your state government.
No Estate or Inheritance Tax
Florida has no estate tax and no inheritance tax. Your assets pass to your heirs without state-level taxation.
Homestead Exemption
Florida's homestead exemption reduces your property's taxable value by up to $50,000 if it's your primary residence. This can save $500-$1,000+ annually on property taxes.
What You'll Pay:
Property Taxes
Florida's average property tax rate is 0.98%, which is actually lower than many northeastern states.
However, Florida doesn't have state income tax, so local governments rely more heavily on property taxes. Your actual bill depends heavily on location and property value.
Example:
$400,000 home in Pasco County: ~$4,000/year in property taxes (with homestead exemption)
$500,000 home in Sarasota: ~$5,500/year
Compare this to what you're currently paying. Many retirees moving from New York, New Jersey, or Illinois find their property taxes actually decrease.
Homeowners Insurance
This is where Florida gets expensive.
Homeowners insurance in Florida costs significantly more than most other states, especially if you're near the coast.
Average costs:
Inland properties (10+ miles from coast): $2,000-$3,500/year
Coastal properties: $4,000-$8,000+/year
Flood insurance (if in flood zone): $500-$2,500+/year additional
Reality check: Get actual insurance quotes for specific properties before you buy. Insurance costs can make or break your budget.
Utilities
Your electric bill will be higher in Florida than up north, especially in summer when AC runs constantly.
Average monthly electric bill for a 2,000 sq ft home: $180-$250 (higher in summer months)
Water and waste management are typically reasonable ($60-$100/month combined).
HOA Fees (If Applicable)
Many Florida communities, especially those with amenities retirees love, have HOA fees.
Range: $100-$500/month depending on amenities (pool, clubhouse, lawn maintenance, etc.)
Make sure you factor this into your monthly budget.
The Bottom Line: For most retirees, Florida's overall cost of living is comparable to or lower than northeastern and midwestern states, especially when factoring in the tax savings.
Choosing Your Florida Region: Tampa Bay vs. Sarasota vs. Beyond
Florida is huge.
Choosing "Florida" isn't enough. You need to choose which Florida.
The lifestyle, cost, culture, and weather vary dramatically from region to region.
Tampa Bay Area (Tampa, St. Petersburg, Clearwater, Pasco, Hernando)
Best for: Retirees who want affordability, variety, good healthcare, and access to both urban amenities and quieter suburban/rural areas
Median home prices: $350,000-$450,000 (varies by specific county)
Pros:
More affordable than South Florida or Sarasota
Excellent healthcare (Moffitt Cancer Center, Tampa General, many specialized facilities)
Major airport with direct flights everywhere
Mix of urban, suburban, and rural options
Growing arts and culture scene
Strong veteran community
Access to beaches without living directly on expensive coastal property
Cons:
More humid than other parts of Florida
Some areas are more developed/busier than others
Traffic can be heavy in certain corridors
Who thrives here: Retirees who want options, value, and don't need to be directly on the water. Veterans tend to love the Tampa Bay area due to strong military presence and veteran-focused services.
Sarasota Area (Sarasota, Bradenton, Venice)
Best for: Retirees prioritizing culture, upscale lifestyle, and proximity to beaches
Median home prices: $450,000-$600,000+
Pros:
World-class arts and culture (theaters, museums, symphony)
Beautiful beaches consistently rated among nation's best
Upscale dining and shopping
Strong healthcare facilities
Sophisticated retiree community
Cons:
More expensive than Tampa Bay
Can feel touristy in peak season
Higher cost of insurance due to coastal proximity
More pretentious/elitist vibe in some communities (not for everyone)
Who thrives here: Retirees with higher budgets who prioritize cultural amenities and don't mind paying premium for coastal lifestyle.
The Villages
Best for: Retirees who want an all-inclusive 55+ community with constant activities
Pros:
Everything designed for retirees
Constant social activities and clubs
Golf cart lifestyle
Low crime
Built-in community
Cons:
Isolated from broader Florida (hour+ from major cities)
Homogeneous population
Can feel artificial or bubble-like
Not near beaches
Not for everyone's personality
Who thrives here: Social retirees who want structured community and don't mind being exclusively around other 55+ residents.
Other Regions Worth Considering:
Southwest Florida (Fort Myers, Naples): Beautiful but expensive. Similar to Sarasota in cost and culture.
Northeast Florida (Jacksonville, St. Augustine): More affordable, less humid, cooler winters. Good for retirees who want "Florida-lite."
Panhandle (Destin, Pensacola): Beautiful beaches, more affordable, but more remote and prone to hurricanes.
Hurricane Season, Insurance, and What You Actually Need to Know
Let's address the elephant in the room: hurricanes are real, and you need to prepare for them.
But let's also put them in perspective.
The Reality of Hurricane Season:
Hurricane season runs June 1 - November 30, with peak activity in August-October.
Most years, Florida experiences:
Several tropical storms (heavy rain and wind, but manageable)
1-2 hurricanes that make landfall somewhere in the state
Occasional major hurricanes (Category 3+) that cause significant damage
Important context:
Not every hurricane impacts every part of Florida. For example, a hurricane hitting the Panhandle doesn't affect Tampa. A storm hitting Miami doesn't impact Sarasota.
Tampa Bay, specifically, hasn't had a direct hit from a major hurricane since 1921 (though we've had close calls and plenty of tropical storms since then).
Insurance Reality:
Yes, insurance is expensive in Florida. Yes, some insurers have left the market.
But here's what to know:
It’s not impossible, just more expensive than other states. Inland properties cost significantly less to insure than coastal properties. And it’s important to note that flood insurance is separate from homeowners insurance. If you're in a flood zone, you'll need a separate policy through the National Flood Insurance Program.
The Snowbird Trial Run: Testing Before You Commit
If you've been snowbirding for years, you already have a sense of Florida life. But if you're considering making the move without extended time in Florida, here's our recommendation:
Rent for a full season (or longer) before you buy. Specifically: Rent during summer, not just winter. Many people fall in love with Florida in February and forget that August exists.
What a Trial Run Teaches You:
Weather tolerance: Can you handle the heat and humidity?
Location preferences: Which areas do you actually enjoy spending time in vs. which were just nice to visit?
Community fit: Do you like the people and culture, or does something feel off?
Healthcare access: Can you find doctors you trust?
Activity level: Is there enough (or too much) to do?
It’s better to rent for 6-12 months, confirm Florida is right, then buy with confidence.
Financial Preparation: What to Have in Order Before You Move
Making a major move in retirement requires financial planning. Here's what to address:
1. Establish Florida Residency Properly
To benefit from no state income tax and homestead exemption, you need to establish legal Florida residency.
Requirements include:
Spending majority of year (183+ days) in Florida
Obtaining Florida driver's license
Registering vehicles in Florida
Registering to vote in Florida
Filing Declaration of Domicile with county clerk
Important: Your former state may try to claim you still owe state income tax if you don't properly establish Florida residency. Document everything.
2. Understand How Your Retirement Income is Taxed
Different retirement income sources are taxed differently in Florida:
Not taxed by Florida:
Social Security benefits
Pension income
401(k) and IRA distributions
Investment income
Military retirement pay
(You'll still pay federal income tax, just no Florida state tax)
3. Review Your Estate Plan
Moving to Florida may require updating:
Will and trusts
Power of attorney documents
Healthcare directives
Beneficiary designations
Florida estate laws differ from other states. Consult with a Florida estate planning attorney after you move.
4. Plan Your Home Sale Timing
If you're selling a home up north to fund your Florida purchase:
Capital gains exclusion: You can exclude up to $250,000 (single) or $500,000 (married) in capital gains if you lived in the home 2 of the last 5 years
Timing: Consider whether to sell before or after moving. Some people keep their northern home as a rental initially, others sell immediately to simplify.
Bridge financing: If you need to buy in Florida before selling up north, explore bridge loans or home equity options.
What Veterans Need to Know About VA Benefits in Florida
If you're a veteran retiring to Florida, your VA benefits continue, and in some cases, improve.
VA Healthcare:
Florida has excellent VA facilities, including:
James A. Haley Veterans' Hospital (Tampa) - one of the largest and most comprehensive VA facilities in the country
Bay Pines VA Healthcare System (St. Petersburg/Pinellas)
Multiple outpatient clinics throughout the region
Veterans with VA healthcare can access these facilities regardless of where in Florida they live.
VA Home Loan Benefits:
Even if you're retired, you can still use VA loan benefits to purchase in Florida:
Zero down payment
No PMI
Competitive rates
Can be used multiple times
Many veteran retirees don't realize they can use VA loans for retirement home purchases. It's one of the best mortgage options available.
Property Tax Exemptions for Disabled Veterans:
Florida offers additional property tax exemptions for veterans with VA disability ratings:
10%+ disability: Additional homestead exemption
100% permanent and total disability: May qualify for full property tax exemption
These exemptions can save thousands annually.
No State Tax on Military Retirement Pay:
Florida doesn't tax military retirement pay, which can save thousands per year compared to states that do.
Your Florida Retirement Starts With the Right Information
At the Military Veteran Team, we help retirees and out-of-state buyers navigate the Florida market every single day. We're here to help you figure out if Florida is right for you, and if so, where and how to make the move successfully.
Ready to explore whether Florida retirement is right for you? Contact the Military Veteran Team and we can talk about your priorities, your budget, and your concerns. No pressure, no sales pitch, just honest guidance from people who know Florida because we call it home.