All-items parity
103.4
US = 100.0
Florida (FL) | All-items parity 103.4
Florida Cost of Living 2026
Florida reads 103.4 on the BEA all-items price parity for 2024, just above the US reading of 100.0. The state has no income tax, but housing demand from net migration has pushed the housing rents parity to 122.1 against a national 100.6. Insurance and Medicaid policy are the headline complications.
No state income taxAll items 103.4 (above US)Medicaid not expanded
Median Home
$398,500
2BR rent $1,620/mo
Median Income
$63,062
Household, Census ACS
Category breakdown
The four BEA price parities vs the nation
| Category | FL index | National avg | Difference |
|---|---|---|---|
| All items | 103.4 | 100.0 | 3.4% |
| Services: housing rents | 122.1 | 100.6 | 21.4% |
| Goods | 98.1 | 99.6 | -1.5% |
| Services: utilities | 90.1 | 98.4 | -8.4% |
| Services: other | 101.3 | 100.1 | 1.2% |
U.S. Bureau of Economic Analysis publishes these four component parities and no others. There is no federal grocery, healthcare or transportation price parity, so this table shows none. Food at home sits inside Goods; medical and transport services sit inside Services: other.
Sources: BEA Regional Price Parities by state (table SARPP, 2024 reference year, released 19 February 2026), 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. The BEA housing parity covers rents, not insurance, so this cost sits outside the 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 BEA housing rents parity now reads 122.1 against a US reading of 100.6, the largest single gap between Florida and the nation in the four-component table.
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.
The statewide parity of 103.4 averages distinct metro patterns. The ordering below is by housing cost, which is where Florida metros separate:
Miami / South Florida: The most expensive metro market in the state. Median home in Miami-Dade and Broward $500,000+, with Palm Beach and the Keys substantially higher. Also carries the highest property insurance premiums in the state.
Naples / Sarasota / Fort Myers: Premium retiree destinations with elevated housing costs, close behind South Florida.
Tampa Bay: Has seen the largest housing inflation since 2020 of any major Florida metro.
Orlando: Tourism and tech employment; substantial new construction supply has kept prices below the South Florida markets.
Jacksonville: Below the state average on housing; military and logistics employment base.
Tallahassee + smaller cities: The Panhandle and rural Florida remain closer to the wider South on cost.
For metro-level Regional Price Parities, the BEA publishes a separate table covering the Florida MSAs.
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. It shows up in the housing component rather than the rest of the basket: on the BEA 2024 parities Florida reads 122.1 on housing rents against a US reading of 100.6, while goods (98.1) and utilities (90.1) sit below the national level.
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. The BEA housing parity measures rents, so property insurance is not inside the 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.