Updated 17 April 2026
Florida vs Texas
Both have no income tax. But their total tax costs, housing costs, and living conditions are meaningfully different. Here is the full comparison.
General information only. Not tax advice.
Florida wins for
- Lower property tax rate (0.86% vs 1.68%)
- No corporate income tax on individuals
- Retirees wanting warm climate year-round
- International lifestyle (Miami, Palm Beach)
- Save Our Homes cap limits future increases
Texas wins for
- Lower cost of living (7% below national avg)
- Lower median home prices
- No corporate income tax at all
- Over-65 school district property tax freeze
- Lower home insurance premiums
Side-by-Side Comparison
| Category | Florida | Texas | Winner |
|---|---|---|---|
| State Income Tax | None | None | Tie |
| Property Tax Rate | 0.86% avg effective | 1.68% avg effective | Florida |
| Homestead Exemption | $50K + Save Our Homes 3% cap | $100K + over-65 school freeze | Texas (over 65), Florida (under 65) |
| Sales Tax (state) | 6.0% | 6.25% | Florida |
| Combined Sales Tax | 7.0% avg with local | 8.2% avg with local | Florida |
| Estate Tax | None | None | Tie |
| Cost of Living Index | 100 (national avg) | 93 (7% below avg) | Texas |
| Median Home Price | $415,000 | $310,000 | Texas |
| Climate | Subtropical, warm year-round | Hot summers, mild winters | Depends on preference |
| Hurricane Risk | High (coastal areas) | Moderate (Gulf Coast) | Texas (inland areas) |
| Healthcare Quality | A (4 of top-15 cancer centers) | A (world's largest medical complex) | Tie |
| Corporate Tax | 5.5% (with exemptions) | No corporate income tax | Texas |
| Franchise Tax | None | 0.375-0.75% gross receipts (business margin) | Florida |
| Home Insurance | $4,000-$8,000/yr coastal | $2,500-$5,000/yr | Texas |
Which State Wins for You?
Retiree on fixed income
Florida wins before 65 due to lower property tax rates and the Save Our Homes cap keeping annual increases to 3%. After 65, Texas catches up significantly through the school district freeze. A $400,000 home in Texas saves around $3,200 per year in property tax after the freeze compared to before. Both states have excellent Medicare infrastructure. Florida's coastal insurance costs are a real ongoing expense for retirees, often $4,000 to $8,000 per year in Miami-Dade, Broward, or Palm Beach counties.
Remote worker buying a first home
Texas wins on affordability. Median home prices in Dallas, San Antonio, and Austin suburbs are $200,000 to $350,000 vs $350,000 to $500,000 for comparable Florida markets. The higher property tax rate in Texas is offset by the lower purchase price. Both states have no income tax on remote work wages. Texas has no home insurance cost problem for inland buyers in DFW, San Antonio, or Austin.
Business owner or self-employed
Texas has no corporate income tax and no personal income tax, but it does levy a franchise tax (business margin tax) on most entities at 0.375% to 0.75% of gross receipts. Florida has a 5.5% corporate income tax rate (on C-corps), though S-corps pass through to individuals who face no personal income tax. For S-corps and LLCs taxed as pass-throughs, both states are effectively zero on the individual income side. C-corps prefer Texas.
Family with children
Texas has stronger public school funding in major metro districts and a lower cost of housing, which means more budget available for private schooling if desired. Florida has historically good school districts in Sarasota, Naples, and St. Johns County (Jacksonville area). Texas wins purely on affordability; Florida wins on coastal lifestyle. Both rank similarly for K-12 outcomes.
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