Florida has long been the default retirement destination, and the reasons are easy to list: warm weather, no state income tax and a large community of people at the same stage of life. What is harder to pin down is the actual monthly cost.
The answer has shifted in recent years. Home prices climbed, and home insurance premiums jumped so sharply that for many retirees, insurance became a bigger line in the budget than property tax. In 2026, rates have finally started to ease in much of the state, but insurance is still the number that decides whether Florida is a bargain or not.
The quick answer
A household headed by someone 65 or older in Florida spends an estimated $5,180 a month on average, just above the national average of $5,119. That estimate starts from Bureau of Labor Statistics spending data for older households and adjusts each category using Florida’s cost of living index from the Missouri Economic Research and Information Center (MERIC) for the second quarter of 2026, where Florida scored 100.8 against a national average of 100.
| Category | Estimated monthly cost, Florida 65+ household | Florida price index (US = 100) |
| Housing | $1,375 | 99.3 |
| Utilities | $355 | 97.5 |
| Food | $697 | 104.9 |
| Transportation | $924 | 103.3 |
| Health care | $621 | 102.8 |
| Everything else | $1,208 | 100.1 |
| Total | about $5,180 | 100.8 |
That is a useful average, but in Florida more than anywhere else, the housing line depends on one thing a general index does not fully capture: what it costs to insure your specific home.
Home insurance: the biggest variable
Insurify put the statewide average home insurance premium at about $6,060 a year for a home with $300,000 of dwelling coverage in mid-2026, or roughly $505 a month. That is more than double the national averages most comparison sites report, and coastal counties can run far higher.
The good news is that the market is improving. According to the Florida Office of Insurance Regulation, as reported in July 2026, homeowners in 51 of the state’s 67 counties saw average rates fall this year, and dozens of insurers have filed for rate decreases or no increase since 2024. State leaders credit legal reforms that cut the number of insurance lawsuits sharply.
What this means for your budget:
- Get quotes for a specific address before you buy. Two similar homes a few miles apart can differ by thousands of dollars a year.
- Newer roofs and wind protection matter. A wind mitigation inspection documents features like roof shape, roof-to-wall connections and storm shutters. Insurers must offer discounts for qualifying features, and they can be large.
- Check the hurricane deductible. Florida policies often have a separate hurricane deductible of 2% to 10% of the home’s insured value. On a $300,000 home, a 5% deductible means you pay the first $15,000 of a hurricane claim.
- Budget for flood insurance. Standard home policies do not cover flooding. Coverage through the National Flood Insurance Program or private insurers is separate.
- Know the backstop. Citizens Property Insurance Corporation is the state-created insurer for homeowners who cannot find coverage elsewhere.
Taxes: where Florida clearly wins
No state income tax. Florida does not tax Social Security, pensions, IRA or 401(k) withdrawals, wages or investment income. For a retiree with $40,000 a year of pension and IRA income, moving from a state with a 5% income tax could save roughly $2,000 a year.
Sales tax. The state sales tax is 6%, and most counties add a local surtax. Groceries and prescription drugs are generally exempt, which helps retirees on a fixed budget.
Property tax protections for homesteads. Florida gives owner-occupied homes several valuable breaks:
- Homestead exemption: up to $50,000 off the assessed value. The first $25,000 applies to all property taxes, the second $25,000 to non-school taxes on value above $50,000.
- Save Our Homes cap: once your home is homesteaded, its assessed value can rise by no more than 3% a year, or the rate of inflation if lower, no matter how fast market values climb.
- Portability: if you move within Florida, you can generally transfer up to $500,000 of your accumulated Save Our Homes benefit to your new homestead.
- Senior exemption for limited incomes: homeowners 65 and older with household income below the yearly limit ($38,686 for 2026 in Palm Beach County’s published guidance) can receive up to $50,000 more off county and city taxes where local governments have adopted it.
The application deadline for most Florida exemptions is March 1. Newcomers who miss it lose a full year of savings.
Health and long-term care costs
Florida’s health care prices sit slightly above the national average on the MERIC index. Long-term care is a different story. According to CareScout’s 2025 survey:
| Care type | Florida median | National median |
| Home care | $32 per hour | $35 per hour |
| Assisted living | $5,610 per month | $6,200 per month |
| Nursing home, shared room | $10,342 per month | about $9,581 per month |
Assisted living and home care cost less than the national median, while nursing home care costs more.
Two sample Florida budgets
These examples assume a retired couple in their late 60s living in an inland suburban area, with one car and Original Medicare plus a supplement.
| Monthly cost | Own home outright | Renting |
| Property tax (with homestead) or rent | $330 | $1,900 |
| Home or renters insurance | $500 | $25 |
| Maintenance and HOA | $250 | $0 |
| Utilities (air conditioning included) | $380 | $330 |
| Groceries and eating out | $1,000 | $1,000 |
| Transportation | $600 | $600 |
| Medicare Part B for two, supplements and drug plans | $806 | $806 |
| Other health costs | $200 | $200 |
| Everything else | $900 | $900 |
| Total | $4,966 | $5,761 |
The housing lines are estimates. Replace them with real quotes for the area you are considering. Medicare Part B for two people is $405.80 a month in 2026 at the standard premium. Supplement and drug plan costs are estimates and vary by county and age.
Is Florida a good place to retire financially?
It can be, especially if you:
- Own a home outright or buy an older home at a good price with an updated roof.
- Have a pension or large IRA, so the lack of state income tax saves real money.
- Live inland or in an area with lower insurance costs.
It may cost more than you expect if you:
- Buy close to the coast, where insurance and flood coverage are expensive.
- Rent in a popular metro area, where rents have climbed.
- Need nursing home care, which runs above the national median.
If you are in your 40s or 50s and planning a move
Visit in the summer, not just in winter, and look at what your utility bills would be with the air conditioning running. Ask a local agent for insurance quotes on real listings in the areas you like. And compare Florida with a few other states using our cost of retirement by state guide. Texas, Tennessee and the Carolinas all offer lower overall costs on our estimates, with different trade-offs on taxes and weather.
Frequently asked questions
How much money do you need to retire in Florida? A 65+ household in Florida spends about $5,180 a month on average. The amount you need to save depends on how much of that your Social Security and pensions cover.
Does Florida tax Social Security or pensions? No. Florida has no state income tax, so Social Security, pensions and retirement account withdrawals are not taxed by the state.
Is home insurance in Florida going down? In 2026, average rates fell in 51 of 67 counties, according to the Florida Office of Insurance Regulation. Costs remain well above the national average.
When is the deadline for the Florida homestead exemption? March 1 of the year you want the exemption to apply.
Sources
- U.S. Bureau of Labor Statistics, Consumer Expenditure Surveys 2024, households 65 and older
- Missouri Economic Research and Information Center, Cost of Living Data Series, Q2 2026
- Florida Office of Insurance Regulation, 2026 rate data, as reported by Spectrum News 13 (July 30, 2026)
- Insurify, Florida home insurance averages, 2026
- Florida Department of Revenue, homestead exemption, Save Our Homes and portability
- Palm Beach County Property Appraiser, Limited Income Senior Exemption (2026)
- CareScout, Cost of Care Survey 2025
- Centers for Medicare and Medicaid Services, 2026 Part B premium
Figures are averages and estimates. Get local quotes before making decisions. This article is general information, not financial advice.
