Tax day is a mere two months away. And while some of us owe and some of us won't be satisfied with our return, now is a good time to remind ourselves that we've got it pretty good here in Florida when it comes to taxes.
Most of us already knew this. It was a major selling point for moving here. But now personal-finance website Wallet Hub has made it official: Florida is one of the most tax-friendly states in all the land.
Sure, it's not perfect. But it's friendly.
For its study, Wallet Hub looked at eight types of taxation, including income tax, real estate tax, vehicle property tax, and sales and use tax, to compare each state to the national median. The site also looked at tax-return data and national spending patterns from the U.S. Census Bureau, the IRS, and the Tax Foundation. It used that information to set up a baseline national tax profile to compare each state and determined which states offer the best tax rates when adjusted by the cost-of-living index.
With no income tax, a low corporate tax rate, and a competitive sales tax, Florida is consistently ranked high in terms of tax-friendliness. And according to the study, the state is ranked fourth overall, with residents paying an average of $3,648 per year in state and local taxes. That's 48 percent better than the national average.
This echoes most other tax rankings by financial websites and studies.
Citing no income tax and the homestead exemption, Kiplinger's Personal Finance magazine named Florida the tenth most tax friendly state for retirees. And the Tax Foundation ranked Florida at number five for best state for taxes for businesses in its 2015 State Business Tax Climate Index. Again, individual income tax was the main reason, as was its ranking in unemployment insurance tax rate.
It's not all gravy for Florida, however. A study by Who Pays? earlier this year shows that Florida ranked among the worst when it comes to tax equality between the 1 percenters and everyone else.
Still, when it comes to tax time and forking it over to Uncle Sam, there's everyone else, and then there's Florida.