2023 – 2024 Senior Citizen State of Florida and Federal Tax Deductions

Florida has one of the lowest tax burdens in the country, making it extremely attractive to seniors and retirees. Those who retire in Florida are likely to experience no personal income tax, no social security tax, low property and vehicle taxes, as well as both state and federal tax deductions. 

Florida Has Zero Personal Income Tax and Zero Social Security Tax

Florida does not impose personal income, inheritance, gift taxes, or intangible personal property taxes. Additionally, there are no state taxes on Social Security benefits, pensions, IRAs, 401(k)s, and other retirement-based income (not including businesses). In addition, Florida has no estate or inheritance tax, and property and sales tax rates are close to national marks.

Source: Florida Department of Revenue

In addition to Florida, there are eight other states with no personal income tax: Alaska, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming.

Florida Has A Low State and Local Sales Tax Rate

Florida has a state sales tax of 6% and allows local governments to collect local sales tax up to 1.5%. The state sales tax applies on sales and purchases of items, services, and transient rentals. As of January 2024, Florida’s total combined average sales and local tax rate was 7.058%.

Source: Florida: Sales Tax Handbook

Florida Property Tax Advantages, Benefits, Deductions, and Exemptions for Seniors 65 and Older

Florida’s average effective property tax rate is 0.86%. Property taxes in Florida rank slightly below the national average, which currently stands at 1.11%. The average Florida homeowner pays $2,372 in property taxes yearly, although this average varies by year and between counties within the state. In addition to low property taxes, there are additional exemptions that seniors may be eligible for including:

Source: Property Taxes in Each State

The Homestead Exemption

In the state of Florida, a $25,000 exemption is applied to the first $50,000 of your property’s assessed value if your property is your permanent residence and you owned the property on January 1 of the tax year. Source: Florida Department of Revenue – Property Tax Exemption for Homestead Property

Additional Homestead Exemption

A board of county commissioners or the governing authority of any municipality may adopt an ordinance to allow an additional homestead exemption of up to $50,000. If the assessed value of your property is $50,000 or less, there will be no change in the exemptions for your property. If the assessed value of your property is greater than $50,000, you will receive up to $25,000 for the extra homestead exemption. A person may be eligible for this exemption if he or she meets the following requirements:

• Owns real estate with a just value less than $250,000
• Has made it their permanent residence for at least 25 years
• Is age 65 or older
• Household income does not exceed the income limitation (2023 adjusted income limitation is $35,167)

Source: Florida Department of Revenue

Save Our Homes Benefit

After the first year a home receives the Homestead Exemption, its assessed value for each following year cannot increase more than 3 percent. The accumulated difference between the just value and the assessed value is the Save Our Homes Benefit.

Source: Florida Department of Revenue – Save Our Homes Assessment Limitation and Portability Transfer

Zero Property Tax in Active Adult Community Living and Senior Retirement Communities

For those 55+ years of age and above, living in an active adult community and senior retirement community is an excellent option. Depending on the home agreement or contract, residents may be able to pay zero property tax on that residence. In addition to zero property tax, some seniors will find that it is cheaper to live in a retirement community after comparing monthly expenditures (home payment, home maintenance and repairs, lawn maintenance, dining/groceries, electricity, water, transportation, internet, etc.).

Top-Rated Senior Living in Florida

One of the top-rated and award-winning senior living communities in the State of Florida is Osprey Village, located on Amelia Island in Northeastern Florida. The community offers a wide variety of services including 55+ active adult living, independent living, assisted living, memory care, respite care, and senior rehabilitation. The benefit of living in a community like Osprey Village is that should your needs change, there is no need to relocate as you’ll be at home in a community of friends and have easy access to the care you require in your own home. To learn more about Osprey Village, visit their website here.

State of Florida and Federal Tax Resources:

• Florida Department of Revenue – Contact Information

Federal Tax Deductions for Seniors

For those who are 65 and older, in addition to state and local tax deductions there are federal tax deductions and exclusions that may apply to your yearly tax filing. Some of the top deductions are listed below:

What is the Standard Federal Tax Deduction for Seniors Over 65?

The standard tax deduction is a set dollar amount that reduces your overall taxable income. This can vary based on your filing status, age, whether you are blind, or if another taxpayer can claim you as a dependent. Below you will find information for the standard deduction plus an increased deduction for seniors over the age of 65.

2023 Senior Citizen-Standard Income Tax Deduction

In the 2023 tax year (filed in 2024), the standard deduction is $13,850 for Single filers and Married Filing Separately, $27,700 for Married Filing Jointly and Surviving Spouses, and $20,800 for the Head of Household. 

For those 65 years of age or legally blind, the standard deduction was increased in 2023 to $1,850 for Single filers or Head of Household, and $1,500 (per person) for married filing jointly, married filing separately, and Surviving Spouses.

* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.

To check your 2023 Standard Deduction, visit the Interactive Tax Assistant (ITA) at IRS.gov

2024 Senior Citizen Standard Income Tax Deduction

In the 2024 tax year (filed in 2025), the standard deduction is $14,600 for Single Filers and Married Filing Separately, $29,200 for Married Filing Jointly and Surviving Spouses, and $21,900 for the Head of Household.

For those 65 years of age or legally blind, the standard deduction was increased in 2024 to $1,950 for Single filers or Head of Household, and $1,550 for Married Filing Jointly, Married Filing Separately, and Surviving Spouses.

* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.

Each situation is different, but if the standard deduction is less than your itemized deductions, it’s better to itemize and save money. If your standard deduction is more than your itemized deductions, it’s better to opt for the standard deduction. Speak with your licensed tax professional to determine which deduction is correct for you.

Medical and Dental Federal Tax Deductions

For retirees, medical, healthcare, and dental expenses are often one of the largest expenses. According to IRS.gov, if you itemize your deductions for a taxable year on Schedule A (Form 1040 – Itemized Deductions), you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure the amount you’re allowed to deduct on Schedule A (Form 1040). Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.These deductions include prescription drugs, nursing home care, long-term care insurance premiums, insurance premiums (including Medicare), and additional out-of-pocket healthcare expenses. For a full list of acceptable tax deductions, visit IRS.gov’s Medical and Dental Expenses here.

Is Assisted Living Tax Deductible?

For those who are in an assisted living retirement community, there may be medical tax deductions that are associated with the care that is received during that tax year.

Residents of assisted living may be entitled to deduct as a medical expense a portion of the monthly service fees and entrance fees which represent medical care in the year paid. The Internal Revenue Code (IRS) does not contain detailed guidance on how to compute this, therefore each resident should consult their licensed tax professional as to the ultimate deduction and disclosure decisions based on their individual situation.

Monthly service fees paid for assisted living and skilled nursing care may be deducted as medical expenses except those charges for non-medical items such as beauty shop charges or guest meals. This treatment is allowable provided that residents require the services, are chronically ill and the services are provided under a plan of care prescribed by a licensed health care practitioner (IRC Section 7702B(c)).

A resident must meet certain criteria to be eligible for a 100% medical deduction for monthly services fees paid. The resident must be unable to perform, without substantial assistance from another individual, at least two activities of daily living for a period of at least 90 days, or the resident requires substantial supervision to protect their health and safety due to severe cognitive impairment. Activities of daily living include eating, toileting, transferring, bathing, dressing, and continence. The services must also be provided pursuant to a plan of care prescribed by a licensed health care practitioner.

For a full list of acceptable tax deductions, visit IRS.gov’s Medical and Dental Expenses here.

Federal Tax Resources:

Disclaimer: The information above should function as a starting point for your tax research but should not be substituted for direct advice from a licensed tax professional. State and Federal taxes are ever-changing and this list may not be current or up to date with the current tax laws, deductions, relief programs, rebates, requirements, etc. Additional tax deductions, credits, and relief programs may be available depending on your town and county of residence within the State of Florida. Check with your local municipality’s tax department, the Florida Department of Revenue, the U.S. Internal Revenue Service (IRS) and your licensed tax professional to learn more about programs that are available for the current tax year.