Florida has no state income tax, meaning you pay $0 in state capital gains tax. You still owe federal capital gains tax.
FL State Rate
0%
No state income tax
Federal Rate
15%
Most common long-term bracket
Combined Effective
18.8%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Florida is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Florida don't qualify for the exclusion. You'll owe 0% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Florida, homes sold in February sell for 6% more than those sold in October (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Florida and nearby states.
Florida has no state income tax, which means you pay $0 in state capital gains tax when selling your home. This zero-tax advantage is one of the primary reasons Florida has become the top destination for retirees and high-net-worth individuals from high-tax states like New York, New Jersey, and California.
While Florida offers a complete state tax shield, federal capital gains obligations remain. Most sellers owe 15% federal long-term capital gains tax on any gain exceeding the $250K/$500K exclusion, plus potentially the 3.8% NIIT if their modified adjusted gross income exceeds $200K (single) or $250K (married).
Florida does impose documentary stamp tax on real estate transactions, which is effectively a transfer tax. The rate is $0.70 per $100 of the sale price (higher in Miami-Dade County at $0.60 plus a surtax). On a $400,000 sale, this amounts to approximately $2,800. While not a capital gains tax, it is a selling cost that reduces your net proceeds.
For individuals relocating to Florida from high-tax states specifically to avoid capital gains tax on a future sale, be aware that establishing Florida domicile requires genuine intent and physical presence. Simply buying a Florida property while maintaining a primary residence in another state will not shield the sale of the non-Florida property from that state's taxes.
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