Introduction
Florida has long been marketed as a prime tax haven, attracting retirees, high-income earners, and those seeking a favorable financial environment. However, recent developments related to natural disasters, rising homeownership costs, and increased taxes are prompting some residents to reconsider their choices. One notable example is Lorraine English, a 72-year-old woman who recently relocated from Bradenton, Florida, to Asheville, North Carolina.
Florida’s Reputation as a Tax Haven
Thanks to its zero state income tax, Florida has been a magnet for individuals from states with high income taxes like California and New York. For instance, a retiree earning $70,000 annually in New York could pay approximately $4,000 in state income taxes, which would be eliminated by moving to Florida. This tax advantage has made Florida especially attractive to retirees and high-earners looking to maximize their savings.
Increasing Costs of Homeownership
While the state’s tax benefits are significant, the rising costs of homeownership are eroding this advantage. Home insurance premiums in Florida are some of the highest in the country, driven by frequent natural disasters, inflation in construction costs, and insurance fraud. For example, English noted that her homeowners’ insurance with hurricane coverage increased to $7,000 annually — a stark contrast to the national average of around $2,500 for similar coverage.
“Two years ago, my homeowners’ insurance went up to $7,000 a year,” English explained. “Flood insurance is separate, but hurricane coverage alone has become a major expense.”
Rising Property Taxes
In addition to insurance costs, property taxes are climbing rapidly in Florida. Over the past decade, government levies have more than doubled, outpacing inflation and population growth. The state’s effective property tax rate stands at approximately 0.79%, which is moderate compared to other states, but the total tax bill can be substantial for homeowners, especially those facing rising property values.
For example, English cited her property taxes at about $3,000 per year, which, combined with insurance, brought her annual housing-related expenses to around $10,000. These increasing costs prompted her decision to relocate to a state with more affordable living expenses.
Migration Away from Florida
The trend of residents leaving Florida is supported by data from the U.S. Census Bureau, which indicates that in 2024, over 506,000 people moved from Florida to other states. The top destinations include Georgia, Texas, North Carolina, New York, and Pennsylvania. Many of these states offer more affordable housing markets and lower taxes, making them attractive alternatives.
For example, Sydney Buckley and her husband moved from West Palm Beach to Greenville, South Carolina, in 2025. They found a $350,000 house with lower property taxes and insurance costs, and their mortgage payment was only slightly higher than their previous rent in Florida.
Implications for Florida’s Future
While Florida remains a popular destination for those seeking tax advantages, the combination of rising insurance premiums, property taxes, and natural disaster risks is making the state less attractive for some residents. The overall housing affordability ranking places Florida near the bottom compared to other states, further incentivizing residents to seek alternatives.
Potential homebuyers should consider not only income tax savings but also the full spectrum of housing costs, including insurance and property taxes, before making relocation decisions. As more residents weigh these factors, the state’s reputation as a tax haven may continue to evolve.
Conclusion
The case of Lorraine English highlights a broader trend of individuals reevaluating their financial and personal safety considerations in Florida. Rising costs and environmental risks are prompting a migration toward states with more stable and affordable living conditions. For current and prospective residents, comprehensive financial planning should include all housing-related expenses to ensure long-term affordability and security.
