Capital Gains Tax in Florida: Does the State Tax It? (2025)

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Meta Description: Florida has NO state income tax and NO capital gains tax. You only owe federal capital gains tax (0%, 15%, or 20% depending on income). Full breakdown.

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H1

Capital Gains Tax in Florida: Does the State Tax It?

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ANSWER SECTION

Florida has NO state capital gains tax. In fact, Florida has no state income tax at all, which means capital gains are only subject to federal taxation. For 2025, federal long-term capital gains rates are 0%, 15%, or 20% depending on your taxable income level. This makes Florida one of the most tax-friendly states for investors and retirees with investment income.

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H2: Florida's No-State-Income-Tax Policy

Florida is one of nine states with no state income tax:

No State Income Tax States:

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
• New Hampshire (only interest and dividend income taxed)

What This Means for Capital Gains:

• 0% state tax on capital gains
• 0% state tax on dividends
• 0% state tax on interest income
• 0% state tax on retirement account withdrawals

Comparison with High-Tax States:

Location	State Capital Gains Rate	Total Rate (with 20% Federal)
Florida	0%	20%
California	Up to 13.3%	Up to 33.3%
New York	Up to 10.9%	Up to 30.9%
New Jersey	Up to 10.75%	Up to 30.75%

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H2: Federal Capital Gains Tax in Florida

While Florida doesn't tax capital gains, you still owe federal tax:

2025 Long-Term Capital Gains Rates:

Tax Rate	Single	Married Filing Jointly	Head of Household
0%	$0 - $48,350	$0 - $96,700	$0 - $64,750
15%	$48,351 - $533,400	$96,701 - $533,400	$64,751 - $566,700
20%	Over $533,400	Over $533,400	Over $566,700

Net Investment Income Tax (NIIT):

• Additional 3.8% for high earners (income over $200,000 single / $250,000 married)
• Applies to investment income including capital gains
• Maximum federal rate: 23.8% (20% + 3.8%)

Short-Term Capital Gains:

• Assets held one year or less
• Taxed as ordinary income (10% to 37% federal brackets)
• Same in all states

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H2: Florida Taxes You DO Pay

While Florida has no income tax, you still pay:

Sales Tax:

• State rate: 6%
• Local rates: 0% to 2%
• Combined rate: Up to 8% depending on county

Property Tax:

• Average effective rate: ~0.91%
• Varies significantly by county
• Homestead exemption available for primary residence

Corporate Income Tax:

• 5.5% on corporations (not individuals)

No Tax On:

• Personal income
• Capital gains
• Dividends
• Interest
• Retirement income
• Social Security
• Inheritance or estate

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H2: Why Retirees Move to Florida

Florida's tax advantages make it extremely popular for retirees:

Tax Savings Example: Retiree with $50,000 in capital gains and dividends:

Tax	California Resident	Florida Resident
Federal tax	~$7,500	~$7,500
State tax	~$5,300	$0
Total	~$12,800	~$7,500
Savings	—	~$5,300

Additional Florida Benefits:

• No estate tax or inheritance tax
• No Social Security tax
• Homestead exemption ($50,000 for primary residence)
• Save Our Homes assessment cap (3% annual increase limit)

Popular Florida Retirement Areas:

• Naples
• Sarasota
• Fort Myers
• Orlando
• Miami area
• The Villages

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H2: Related Tax Questions

Compare Florida's treatment with California's high rates in our guide on California capital gains tax with rates from 1% to 13.3%.

Learn about Florida's treatment of inherited assets in our guide on inheritance tax in Florida — also no state tax.

For another state with no income tax comparison, see our guide on whether California taxes Social Security — California doesn't tax Social Security either, but taxes most other income.

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