Retire in Florida: Cost, Taxes & FIRE Number for 2026
Retiring in Florida costs about $57,000 a year on average, earning an A+ retirement tax grade and a #27 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Florida
The average retiree in Florida spends about $57,000 a year ($4,750/month), based on BLS spending data for households 65 and older, adjusted for Florida's cost of living. That works out to a standard retirement number of $1,425,000 under the 4% rule, or $1.63M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Florida's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Florida earns an A+ retirement tax grade from Plootus Research — the highest possible — and ranks #27 of 50 states for healthcare quality. Combined with an average annual salary of $58,960 for working residents (median $49,260), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Florida Retirement Snapshot
| Metric | Florida |
|---|---|
| Average annual retirement cost | $57,000/yr |
| Average monthly retirement cost | $4,750/mo |
| Standard retirement number (4% rule) | $1,425,000 |
| FIRE number (3.5% rule) | $1.63M |
| Retirement tax grade | A+ |
| State income tax | None (no state income tax) |
| Social Security tax | No tax — fully exempt |
| Healthcare quality rank | #27 of 50 |
| FIRE-friendliness rating | ★★★★☆ |
| Average annual salary (working residents) | $58,960 |
| Median annual salary (working residents) | $49,260 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Florida-Adjusted Retirement Number
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How Florida Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Florida (this page) | $57,000 | $1,425,000 | A+ | #27 |
| North Carolina | $51,000 | $1,275,000 | B+ | #25 |
| South Carolina | $48,000 | $1,200,000 | B | #40 |
| Georgia | $51,500 | $1,287,500 | B+ | #38 |
→ Run a full side-by-side comparison in the State Comparison Tool
How Florida Treats Retirees on Taxes and Healthcare
Florida carries an A+ retirement tax grade from Plootus Research — the highest rating possible, driven entirely by the complete absence of state income tax on all income sources.
State Income Tax
Florida has no state income tax. All retirement income — Social Security, pensions, 401(k)s, IRAs, and investment income — is completely untaxed at the state level.
Social Security Tax
Social Security benefits are fully exempt by virtue of Florida having no state income tax — one of the most powerful financial advantages for retirees choosing the Sunshine State.
Florida ranks #27 nationally for healthcare quality — mid-pack nationally, with extensive Medicare infrastructure built around the state's massive retirement population, particularly strong in South Florida, Tampa Bay, and Orlando.
Frequently Asked Questions
Florida earns an A+ retirement tax grade — the best possible — and ranks #27 of 50 for healthcare quality. Average annual retirement spending runs about $57,000, requiring roughly $1,425,000 in savings under the standard 4% withdrawal rule. Florida has no state income tax of any kind, making all retirement income sources completely free from state taxation.
No. Because Florida has no state income tax, Social Security benefits — along with all other retirement income including pensions, 401(k) distributions, IRA withdrawals, and investment income — are completely free from state taxation. This is one of the single biggest draws for retirees choosing Florida.
Using the standard 4% rule, retiring in Florida on its average annual cost of $57,000 requires approximately $1,425,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio. Costs vary significantly by region — South Florida runs higher, inland communities run lower.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Florida's FIRE number is approximately $1.63M, based on its $57,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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