Florida vs Texas: Taxes & Take-Home Pay 2026

Two no-income-tax states: what actually differs

Florida and Texas both have no personal income tax, so the take-home pay table above shows the same result in both states: only federal income tax, Social Security and Medicare come out of your pay. Neither state has an employee contribution for disability or paid family leave, and Florida’s reemployment tax is paid only by employers.

The real comparison is property tax, sales tax and insurance. People choosing between Miami and Houston, or Tampa and Austin, should compare the property tax bill on the specific home they would buy, because that is where the two states diverge most.

Property tax and homestead exemptions

Texas school districts must exempt $140,000 of a residence homestead’s value, with an additional $60,000 for homeowners aged 65 or older or disabled. Cities, counties and other taxing units can add an optional exemption of up to 20% of appraised value. Texas still relies heavily on property taxes because it has no income tax, so total rates are among the highest in the country.

Florida works differently. The homestead exemption takes up to $50,000 off the taxable value of a permanent residence, and the Save Our Homes limitation then caps how fast the assessed value of a homestead can rise each year. Over time, Save Our Homes can make a long-held Florida home’s taxable value much lower than its market value; new buyers start at market value.

Sales tax

Worked example: a $12,000 furniture purchase in a county at the maximum rate costs about $820 in sales tax in Florida (6% on the full price plus 2% surtax on the first $5,000) and $990 in Texas at 8.25%. On everyday purchases under $5,000 the two states are close.

Retirees and investors

Neither state taxes Social Security, pensions, IRA withdrawals, dividends or capital gains, because neither has a personal income tax. Federal tax on Social Security still applies in both states, based on your combined income. For retirees, the choice is about property tax (Texas’s additional $60,000 school exemption at 65 versus Florida’s Save Our Homes cap) and cost of living.

Which state comes out ahead for you

Because take-home pay is identical, the answer depends on your housing and spending:

• Renters: there is no homestead benefit, so the visible difference is sales tax on what you buy, an average combined 8.20% in Texas versus 6.98% in Florida. On $20,000 of taxable spending that is about $244 a year more in Texas.
• New home buyers: a Texas homestead takes $140,000 off the value for school taxes, while Florida takes off up to $50,000; compare the total millage and assessed value for the actual house.
• Long-time Florida homeowners: Save Our Homes may have kept your taxable value far below market value, a benefit you give up if you sell and move.
• Homeowners 65+: Texas adds a $60,000 school exemption for seniors and disabled homeowners.
• Big-ticket shoppers: Florida’s $5,000 cap on the county surtax for a single item favors buyers of furniture, appliances and boats.

Moving between Florida and Texas

• There is no part-year income tax return in either state, so the move year only affects your federal return.
• Apply for the homestead exemption in your new county promptly. Florida applications go to the county property appraiser; Texas applications go to the appraisal district.
• You can only claim a homestead on your principal residence. Keeping the old home means losing its homestead benefits.
• If you move from a state with an income tax first, such as Illinois or New York, file a part-year return there before your first year in either state is complete.