Composite Index
102.8
US average = 100.0
Florida (FL) | Composite 102.8
Florida Cost of Living 2026
Florida sits at 102.8 on the 2026 cost of living index, just above the national average. The state has no income tax but housing demand from net migration has pushed Florida from the cheap-state cluster (where it sat in 2019) to slightly above average by 2026. Insurance and Medicaid policy are the headline complications.
No state income taxComposite 102.8 (above avg)Medicaid not expanded
Median Home
$398,500
2BR rent $1,620/mo
Median Income
$63,062
Household, Census ACS
Category breakdown
All 6 categories vs national average
| Category | FL index | National avg | Difference |
|---|---|---|---|
| Housing | 107.3 | 100.0 | 7.3% |
| Groceries | 101.5 | 100.0 | 1.5% |
| Utilities | 101.2 | 100.0 | 1.2% |
| Transportation | 105.8 | 100.0 | 5.8% |
| Healthcare | 96.2 | 100.0 | -3.8% |
| Miscellaneous | 98.7 | 100.0 | -1.3% |
Sources: BEA Regional Price Parities, C2ER Cost of Living Index, Census ACS 5-year (median income, home value), Florida Department of Revenue (sales and property tax), Florida Office of Insurance Regulation (insurance premiums), KFF (uninsured rate), Florida Demographic Estimating Conference (migration data).
Pros / offsets
What works in Florida.
No state income tax. Florida is one of 9 no-income-tax states. The Florida Department of Revenue funds the state via 6% sales tax (plus up to 2.5% local), property tax and tourism-related revenues.
Climate-driven demand. Year-round warm climate, no state income tax and substantial retiree-friendly policies (homestead exemption + Save Our Homes assessment cap) have driven net in-migration of approximately 365,000 people/year since 2020.
Property tax 0.80% effective. Below the national average. The Florida homestead exemption removes $25,000-$50,000 of assessed value for primary residences. Save Our Homes caps annual assessment increases at 3% or CPI (whichever is lower).
Retirement-friendly tax treatment. No income tax means no tax on Social Security, pensions, 401(k) or IRA withdrawals at the state level. Florida is a leading retiree destination for this reason.
Cons / drivers
Where Florida costs more.
Property insurance crisis. Florida property insurance premiums have risen 40-50%+ over 2020-2025 due to hurricane risk and litigation reforms. Average annual premium exceeds $4,000 statewide and can exceed $10,000 in coastal counties. Not in the C2ER cost-of-living index but materially affects total housing cost.
Migration-driven housing inflation. Median home $398,500 (vs $250,000 pre-2020) reflects substantial price appreciation. The housing sub-index is now 107.3, where Florida sat near 90 a decade ago.
Medicaid not expanded. Florida has not expanded Medicaid under the ACA. Uninsured rate 12.7% per KFF, well above the US median. Coverage gap affects low-and-middle-income households.
Sales tax stacks. 6% state plus up to 2.5% local can reach 8.5% combined. Groceries are exempt; prepared food taxed.
Tax + benefit signals
Florida tax and access overview
State income tax
0%
No state income tax
Property tax effective
0.80%
Of assessed value, annual
Sales tax (state)
6.00%
Local can add 1-4% more
Uninsured rate
12.7%
Medicaid: not expanded
Metro variation
State averages mask city variation.
Florida state average 102.8 averages distinct metro patterns:
Miami / South Florida: Roughly 115-125 RPP. Median home in Miami-Dade and Broward $500,000+, with Palm Beach and the Keys substantially higher. Combined with the highest property insurance premiums in the state.
Naples / Sarasota / Fort Myers: Roughly 115-130 RPP. Premium retiree destinations with elevated housing costs.
Tampa Bay: Roughly 100-110 RPP. Has seen the largest housing inflation since 2020 of any major Florida metro.
Orlando: Roughly 95-105 RPP. Tourism and tech employment; substantial new construction supply.
Jacksonville: Roughly 90-95 RPP. Lower than state average; military and logistics employment base.
Tallahassee + smaller cities: 85-95 RPP. The Panhandle and rural Florida remain closer to the South-average cost.
Frequently Asked
Florida cost of living, answered
Why has Florida cost of living risen so much since 2020?
Net migration. Approximately 365,000 net new residents per year since 2020 (Florida Demographic Estimating Conference). Demand for housing has outpaced supply, particularly in Tampa, Orlando, Miami and southwest Florida. The state's cost-of-living index has moved from roughly 95 in 2019 to 102.8 in 2026, a substantial shift in 6 years.
What is the property insurance situation in Florida?
Florida property insurance premiums have risen 40-50%+ over 2020-2025 due to hurricane claim history, litigation costs, and the exit of several major insurers from the market. Statewide average annual premium exceeds $4,000; coastal counties can exceed $10,000. The Florida Office of Insurance Regulation publishes per-carrier rate filings. Property insurance is NOT included in the C2ER cost-of-living index but materially affects total housing cost. Citizens Property Insurance Corporation is the state-backed insurer of last resort.
Does Florida really have no income tax?
Yes. The Florida Constitution prohibits a state income tax. Federal income tax still applies. State revenue comes from 6% sales tax, property tax, intangible personal property tax, and tourism-related revenues. The retiree benefit is meaningful: pension, 401(k), IRA withdrawals and Social Security are all exempt from state tax.
How does Florida property tax compare to other states?
Effective property tax 0.80% per the Tax Foundation, below the national average. The Florida homestead exemption removes $25,000-$50,000 of assessed value for primary residences. Save Our Homes caps annual assessment increases at 3% or CPI, similar to California's Prop 13. Long-term owners can pay tax on a much lower assessment than market value.
Is Florida still a good place to retire?
Depends on your housing situation. For retirees who bought before 2020 and own outright, Florida's no-income-tax-plus-Save-Our-Homes combination is highly favorable. For retirees buying now, factor in: $398,500 median home, $4,000+ annual property insurance, and tax savings of $0-$3,000/year depending on your income source mix. The /retirement-friendly-states page has the full tax-only ranking.
Why is Florida uninsured rate so high?
12.7% uninsured per KFF, the third-highest in the US after Texas and Oklahoma. Florida has not expanded Medicaid under the ACA. The state's large population of retirees on Medicare partially offsets this in the headline number, but working-age Floridians under 65 face one of the lowest insured rates in the country.