Florida has fallen from grace as a ‘tax haven’ — prompting Lorraine English, 72, to move from Bradenton, Florida, to Asheville, North Carolina, because of frightening natural disasters and the rising cost of homeownership in the state.
Marketed as a tax haven, Florida lures immigrants with promises of zero income tax and special tax breaks that accrue to long-time homeowners. (1) It’s a powerful draw for residents of states with high income taxes, like California (up to 13.3%) and New York (up to 10.9%). (2)
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But storms have swept away some of the financial benefits of living within the Sunshine State. On top of weathering a spate of natural disasters, Florida homeowners like English have been blindsided by other costs. One of the biggest fees: home insurance.
Income tax haven, insurance hell
Florida is the most expensive home insurance market (3) in the country.
“Two years ago, my homeowners’ insurance with hurricane coverage — not including flood insurance, which is a separate policy — went up to $7,000 a year,” English told Business Insider. (4)
How other states stack up: Assuming $300,000 of dwelling coverage, the typical American pays $2,543. Insurance.com says Florida residents pay $7,136 for identical coverage. (5)
Florida home insurance has gone up because of insurance fraud, inflation of construction costs, and natural disasters, experts say. (6)
“The last storm I went through in Florida was Hurricane Milton,” English said. She spent $6,500 fixing damage to her pool cage and considered herself “lucky.”
Florida’s tax haven status is attractive to residents in states with high income taxes. Kiplinger says a retiree earning $70,000 per year in New York could pay roughly $4,000 in state income tax on their retirement income, whereas moving to Florida would eliminate that tax. (7)
How much of that savings is left after home insurance fees? For a policy on a $600,000 house, the typical NY homeowner pays $3,021. (8) The typical Floridian pays $13,729. Say you and your partner are saving $4,000 each because of zero income taxes. If your household pays $8,000 less for income taxes but pays $10,000 more for home insurance, is it worth it?
Property taxes are rising
Florida has also been collecting more property taxes from residents. Some say it’s been making housing less affordable. The nonprofit Florida TaxWatch says government levies have more than doubled over the last decade, faster than the pace of inflation and population growth combined. (9)
Another reason property taxes are rising: housing prices have spiked. Home prices rose from about $250,000 to $375,000 in 2026 compared to the beginning of the pandemic, according to Zillow. (10)
For property taxes, Florida ranks middle-of-the pack. Its effective property tax rate of 0.79% is better than many states. (11) Since new homeowners from out-of-state don’t immediately benefit from property tax caps, the best rates are probably exclusive to local, long-time residents. (12) Florida property taxes are capped by the Save Our Homes Amendment. (13)
English cited rising property taxes as one of the reasons she left Florida. “…my property taxes were about $3,000 a year,” English said. “Altogether, I was looking at around $10,000 a year just for insurance and taxes.”
Residents migrate to save
Other Floridians are leaving the state to avoid rising bills, too.
Sydney Buckley and her husband, René Barajas Jr., moved from the West Palm Beach area to Greenville, South Carolina, in 2025. The couple told the Wall Street Journal they couldn’t find any houses in Florida within their budget. (14) In South Carolina, they found and bought a $350,000 house.
The mortgage payment is only $100 more than they were spending on rent for their apartment in Florida. The couple also said they pay much less property tax and insurance than they would have in Florida.
The couple aren’t the only ones leaving for calmer pastures. In 2024, a whopping 506,246 people moved from Florida to another state. U.S. Census data says top destinations were Georgia (52,371), Texas (52,219), North Carolina (33,591), New York (28,080), and Pennsylvania (25,048). (15)
Why these states: Georgia, Texas, and North Carolina rank as affordable housing markets. U.S. News ranks Florida’s housing affordability at #44 out of 50, slightly behind New York. (16)
Florida remains a potential tax haven for families and a powerful draw. But rising taxes and insurance premiums have to be considered. If potential homebuyers add only one thing to their homebuying checklist, let it be reasonable homeowners insurance.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Griffin Funding (1); TurboTax (2); Bankrate (3); Business Insider (4); Insurance.com (5),(8); SouthState Bank (6); Kiplinger (7); Florida TaxWatch (9); Zillow (10); Rocket Mortgage (11); Tax Foundation (12); Pensacola News Journal (13); The Wall Street Journal (14); U.S. Census Bureau (15); U.S. News & World Report (16)
This article originally appeared on Moneywise.com under the title: Why one woman bolted from ‘tax haven’ Florida, and others are leaving too
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
