Florida vs Texas Taxes: Which State Actually Saves You More?
Both states have zero state income tax. But the total tax picture is very different. Let's break down every dollar.
The Zero Income Tax Myth
“Move to Florida or Texas — no income tax!” You hear it everywhere. But income tax is just one piece. When you factor in property tax, sales tax, insurance, and fees, the picture changes dramatically.
The Full Tax Comparison
| Tax / Cost Category | 🌴 Florida | 🤠 Texas | Winner |
|---|---|---|---|
| State Income Tax | 0% | 0% | Tie |
| Property Tax (avg rate) | 0.86% | 1.60% | Florida |
| Property Tax ($400K home) | $3,440/yr | $6,400/yr | Florida by $2,960 |
| Sales Tax (state + avg local) | 7.01% | 8.20% | Florida |
| Home Insurance (avg annual) | $4,200+ | $2,800 | Texas by $1,400 |
| Auto Insurance (avg annual) | $2,560 | $2,100 | Texas |
| Estate Tax | None | None | Tie |
| Capital Gains Tax | None | None | Tie |
Real Scenario: Family Earning $180K
Let's compare a family of 4 buying a $400K home in each state:
🌴 Florida Total
- Income Tax: $0
- Property Tax: $3,440
- Home Insurance: $4,200
- Sales Tax Impact: $2,100
- Annual Total: ~$9,740
🤠 Texas Total
- Income Tax: $0
- Property Tax: $6,400
- Home Insurance: $2,800
- Sales Tax Impact: $2,460
- Annual Total: ~$11,660
Florida saves ~$1,920/year in this scenario
But Texas homes cost less on average ($334K vs $405K), which could flip the math. Your optimal state depends on your specific numbers.
Get Your Personal Tax Comparison →The Verdict: It Depends on Your Situation
Choose Florida If...
- ✓ You want lower property taxes
- ✓ You prefer beach/tropical lifestyle
- ✓ You're retiring (no estate tax)
- ✓ You can absorb higher insurance
- ✓ You want international community
Choose Texas If...
- ✓ You want lower home prices
- ✓ You want a stronger job market
- ✓ You prefer more space/land
- ✓ You want lower insurance costs
- ✓ You have kids (top school districts)
Don't Forget New Mexico
New Mexico has the lowest property taxes in America at 0.67%. Yes, it has a modest income tax (1.7-5.9%), but when you combine property tax savings with a $357K median home price, many families actually come out ahead vs both TX and FL. Read our full NM guide →