$0 vs $0 Income Tax — But the Real Cost Is Property Tax, Insurance & Sales Tax

Verdict: paycheck tie at $79,180 — Florida wins for long-term homeowners

Texas vs Florida take-home pay by income: identical paychecks

Quick answer: take-home pay is identical in Texas and Florida at every income because neither state charges income tax. Compare your own salary with the Texas paycheck calculator and the Florida paycheck calculator, then use the table below to confirm the tie before comparing property tax.

The table below shows single filers taking the 2026 standard deduction ($16,100). Federal tax uses 2026 IRS floors [0, 12400, 50400, 105700, 201775, 256225, 640600] at rates 10 to 37 percent. FICA is shown at a flat 7.65% and is identical in both states, so it never changes the gap. State income tax is $0 in both columns at every income, which is exactly why this comparison turns on housing and insurance instead of paychecks.

Amounts rounded to the nearest dollar. FICA shown at a flat 7.65%; above the Social Security wage base, actual FICA is lower in both states and the tie is unaffected because FICA is identical either way.

How each row was computed: taxable income equals gross minus $16,100. Federal tax is bracket math on the taxable amount (check: $83,900 taxable at $100K gives $1,240 plus $4,560 plus $7,370, totaling $13,170). FICA equals gross times 7.65%. Take-home equals gross minus federal minus FICA, with $0 state tax in both states. Married filing jointly uses double the floors and a $32,200 standard deduction, and the tie still holds at every income.

High earners should note the same tie continues at $250K and above: neither Texas nor Florida adds a state slab, so the only state-level differences remain property tax, sales tax, and insurance. That is why a $0 versus $0 headline can still hide a $2,000-plus yearly gap once you buy a home.

Property tax tradeoff: Texas 1.47-1.68% vs Florida homestead and 3% cap

Quick answer: Texas funds its $0 income tax with some of the highest property taxes in the country, while Florida shields homeowners with a $50K exemption and a 3% annual cap. On a $300K home that means about $4,410-$5,040 per year in Texas versus about $2,100-$2,500 in Florida.

• Texas average effective rate of 1.47-1.68% with a $140,000 homestead exemption that applies against school-district taxes only.
• Florida $50,000 homestead exemption plus the Save-Our-Homes 3% annual assessment cap, with portability that lets you carry savings to a new Florida home.
• $300K Texas home at 1.47% equals $4,410 and at 1.68% equals $5,040 per year before the school-tax break; the same Florida home exempts $50K first, leaving $250K taxable at roughly 0.85-1.0%, or about $2,100-$2,500.
• Renters feel this indirectly through rent, but owners feel it every October when the bill arrives — run your county rate, not the state average, before signing.

Texas raised its school-district homestead exemption to $140,000, which helps, but it does not cover city, county, and special-district levies, so the total bill stays high on expensive homes. Florida taxes the home minus $50K and then caps annual growth in assessed value at 3% for homesteaded properties, which compounds into large long-term savings in rising markets such as Tampa, Orlando, and South Florida. Portability adds another Florida edge: up to $500,000 of Save-Our-Homes benefit can transfer to your next Florida home, while Texas offers no equivalent statewide carryover.

Try it in the calculator above: enter a home value to see a rough property-tax estimate for both states next to your take-home comparison. Then confirm the exact levy with the county appraisal district in Texas or the county property appraiser in Florida, because local add-ons move the final bill by hundreds of dollars.

Sales tax and homeowners insurance: the second and third tiebreakers

Quick answer: Texas starts at 6.25% state sales tax capped at 8.25% combined, while Florida starts at 6% with discretionary surtax often pushing checkout to 7-8.5%. Insurance then pulls the other way: Florida homeowners and flood premiums frequently exceed Texas premiums, especially near the coast.

Texas charges a 6.25% state base rate and lets cities, counties, and transit districts stack add-ons up to a combined cap of 8.25%. Florida charges a 6% state base rate and lets counties add a discretionary sales surtax, which commonly pushes the register total to 7-8.5% depending on the county. Groceries and medicines get partial breaks in both states, and neither state taxes most unprepared food the way a restaurant meal is taxed. For a household spending $30,000 on taxable goods, a one-point combined-rate difference is about $300 per year — real money, but far smaller than the property-tax gap.

Insurance deserves equal weight. Florida wind, hurricane, and flood exposure has pushed homeowners premiums and separate flood policies well above national averages in coastal counties, and insurer exits have forced many buyers into higher-cost coverage. Texas hail, tornado, and Gulf hurricane risk also raises premiums along the coast and in hail corridors, but typical inland Texas premiums run lower than typical coastal Florida premiums. Always collect two or three real quotes for the exact ZIP code before comparing states, because a $1,500 insurance swing can erase half the Florida property-tax advantage on a $300K home.

Homestead rules side by side

Texas offers a $140,000 homestead exemption against school-district property taxes plus a 10% annual appraisal cap on homesteaded homes. Florida offers a $50,000 homestead exemption against most levies plus the Save-Our-Homes 3% annual assessment cap and portability of up to $500,000 in accrued benefit to a new Florida homestead. Texas helps more in year one on school taxes; Florida helps more over a decade of ownership because the 3% cap compounds and the benefit travels with you.

Texas vs Florida: honest pros and cons

Taxes are only half the decision. Here is the one-line version of each side — and if you want more state pairs like this one, browse our state tax comparison hub.

Texas: pros and cons

Pros:

• Zero state income tax at every income level with no state return to file.
• $140,000 homestead exemption against school-district property taxes.
• Large inland metros with relatively affordable rents and home prices.
• No state tax on wages, Social Security, pensions, or investment income.

Cons:

• Average effective property tax of 1.47-1.68% ranks among the highest nationally.
• A $300K home costs about $4,410-$5,040 per year before limited exemptions.
• Combined sales tax up to 8.25% with local add-ons.
• Property insurance rising on the Gulf Coast and in hail-prone areas.

Florida: pros and cons

Pros:

• Zero state income tax at every income level with no state return to file.
• $50,000 homestead exemption plus a 3% Save-Our-Homes annual cap with portability.
• Same $300K home costs about $2,100-$2,500 in property tax, roughly half of Texas.
• No state tax on Social Security or retirement income, attractive for retirees.

Cons:

• Homeowners and flood insurance can be the highest in the nation near the coast.
• Discretionary surtax pushes many counties to 7-8.5% at checkout.
• Rapid price growth in Miami, Tampa, and Orlando offsets tax savings for new buyers.
• Flood-zone diligence, elevation certificates, and wind mitigation add moving costs.

Moving between Texas and Florida checklist

Quick answer: there is no state income-tax return on either side, so the move is about homestead deadlines, insurance bind dates, licenses, and payroll address. Work through these 8 steps in order and keep every proof.

1. Fix your move date and keep lease or deed proof. Your homestead start, insurance bind date, and payroll address all anchor to this date — save the signed lease or closing papers.
2. File homestead immediately in your new state. Texas school-district exemption and Florida $50K exemption both require application; Florida deadlines cluster around March 1, so do not wait until tax season.
3. Bind homeowners and flood insurance before closing. Get wind, hail, hurricane, and flood quotes for the exact address early, especially on the Florida coast or the Texas Gulf, and confirm the lender accepts the policy.
4. Get your new license and register to vote within the state deadline. Texas requires a new license within 90 days of establishing residency; Florida requires action within 30 days of starting work or registering a vehicle.
5. Register vehicles and update registration records. Transfer plates, update insurance garaging address, and close out toll accounts tied to the old state.
6. Give payroll your new address on federal Form W-4. Neither state has a state withholding form, so confirm state withholding stays at zero and only federal withholding continues.
7. Re-shop sales-tax assumptions in your budget. Update your monthly budget for the new county combined rate, since 7% versus 8.25% shifts a $2,500 spending month by more than $30.
8. Keep a proof folder and check refund math. Store the lease or deed, utility bills, license, and voter card together. A move year can change federal withholding and credits, so run our federal tax refund calculator before filing.