Cost of Living in Florida
Things cost about ▲ 3% more in Florida than the national average.
What Things Cost in Florida
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Florida's headline advantage is simple: no state income tax. That single fact has driven decades of in-migration from high-tax Northeastern states and, more recently, from California. The overall cost of living sits just a few percent above the national average, but that statewide number masks enormous variation. Miami is expensive. Jacksonville is affordable. Naples is wealthy. The Panhandle is cheap. Insurance costs are a Florida-specific budget factor that out-of-state movers often underestimate: homeowner's insurance and auto insurance premiums in Florida are among the highest in the nation, driven by hurricane risk, litigation costs, and fraud.
Florida at a Glance
Taxes in Florida
Florida has no state income tax. That's money in your pocket that residents of most other states don't keep. The combined sales tax averages 6%. Property taxes run about 0.8% of home value, which on a $392,800 median home means roughly $3,142/year.
Cities in Florida
Ranked from least to most expensive. Index 100 = national average.
Explore Florida
FAQ About Florida
For most people, yes, and significantly so. Florida has no state income tax compared to New York's rates up to 10.9% (plus NYC local tax for city residents). Housing costs vary widely by area but are generally lower than the New York metro. However, Florida's homeowner's insurance costs are among the highest in the country, and auto insurance is also expensive. For a high earner, the income tax savings alone can be $10,000 or more per year.
The standard cost of living index for Florida is only about 3% above the national average. But the true cost includes insurance premiums that are well above national averages: homeowner's insurance averages $3,000 to $6,000 per year in many areas, flood insurance adds $700 to $2,000 if required, and auto insurance is consistently among the nation's most expensive. Utility costs are moderate but air conditioning runs roughly eight months of the year.
Jacksonville is the most affordable major city in Florida, with a cost of living near the national average and median home prices well below the statewide figure. The Panhandle cities of Pensacola and Tallahassee are also affordable. Lakeland and Ocala offer low costs with growing communities. Miami, Fort Lauderdale, Naples, and the Keys are the most expensive areas.