Quick answer, as of September 23, 2026
Florida has no personal income tax and no estate tax for deaths after December 31, 2004. Homeowners 65 and older with household adjusted gross income of $38,686 or less for 2026 can add a senior homestead exemption of up to $50,000 in the counties and cities that adopted it. A 55-plus community must have at least 80 percent of its occupied units occupied by at least one person 55 or older. Condo buyers should read the milestone inspection and reserve study before signing.
Gregg Costin, Realtor, Levin Rinke Realty
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Who this guide is for
People choosing the Pensacola area for the years after work: a couple selling a larger house up north, a widow moving closer to family, a military retiree who already knows NAS Pensacola, a snowbird deciding whether to make Florida home. It covers the exemptions a retiree can claim, the state's tax posture, the Fair Housing rules that govern 55-plus communities, the condo questions that decide whether a building is a good buy, and the healthcare and travel facts you will want on hand.
Nothing here is tax, legal or medical advice. Every threshold is quoted from the statute or agency page named in the sources, read September 23, 2026, so you can hand the list to your advisor and check the current figure.
Florida's tax posture, from the Department of Revenue
Three facts carry most of the weight. The Florida Department of Revenue states that the State of Florida does not have a personal income tax, so pensions, Social Security, IRA withdrawals and investment income are not taxed by the state. The Department's estate tax page states that a federal change eliminated Florida's estate tax on people who died after December 31, 2004.
And its 2007 tax information publication records that the annual tax on intangible personal property was repealed effective January 1, 2007, leaving only the nonrecurring intangible tax on new mortgages.
What Florida does tax is consumption and property. The state sales tax is 6 percent plus a county surtax, and property tax is assessed at just value with the exemptions and caps described next. Those two lines, plus homeowners insurance, are where a retiree's Florida budget is won or lost. The out-of-state guide carries the sales tax rates, the insurance averages and the utility contacts.
The homestead exemption, and the senior exemption on top of it
Every Florida homeowner who owns and occupies the home as a permanent residence on January 1 can claim the homestead exemption: the first $25,000 of assessed value is exempt from all levies except special assessments, and an additional amount, up to $25,000 as written in section 196.031 and adjusted annually for inflation since January 1, 2025, is exempt from non-school levies on value above $50,000.
The application is due on or before March 1 under section 196.011. Once granted, section 193.155 caps annual increases in assessed value at the lower of 3 percent or the change in the Consumer Price Index.
Section 196.075 adds two exemptions for owners 65 and older, each of which a county or municipality must adopt by ordinance and each of which applies only to the adopting government's millage, never to school district taxes. The first is up to $50,000 of additional exemption for an owner 65 or older whose household adjusted gross income does not exceed an inflation-adjusted limit. The Department of Revenue's January 2026 table sets that limit at $38,686 for 2026, up from $37,694 in 2025.
The second is for an owner 65 or older who has maintained permanent residence on the property for at least 25 years, where the just value is less than $250,000 as determined in the first year the owner applies; it can exempt the full assessed value from the adopting government's levy. Both are applied for on Form DR-501SC with a statement of household income.
Locally, the Santa Rosa County Property Appraiser lists a $50,000 senior exemption with the 2026 income limit of $38,686 and the March 1 deadline, and the Escambia County Property Appraiser's renewal page asks whether your 2025 adjusted gross income was $38,686 or less.
Escambia's appraiser lists a $50,000 county senior exemption and a separate $50,000 City of Pensacola senior exemption, each applying only to its own levy. Confirm eligibility and every taxing authority for the exact address; neither exemption reduces school taxes. The homestead guide covers the base exemption, Save Our Homes and portability in full.
Other exemptions, and the tax deferral
- Widows and widowers, blind persons, totally and permanently disabled persons: $5,000 each under section 196.202, per the Department of Revenue's PT-111 and both county appraisers.
- Quadriplegic homeowners: the homestead is exempt from all ad valorem taxation under section 196.101, per PT-111.
- Veterans: $5,000 for a service-connected disability of 10 percent or more (section 196.24); a full homestead exemption for an honorably discharged veteran with a service-connected total and permanent disability, carrying over to the surviving spouse (section 196.081); and for veterans 65 and older with a combat-related disability, a discount equal to the percentage of the disability (section 196.082).
- Portability: if you are moving from another Florida homestead, section 193.155 lets you transfer up to $500,000 of your Save Our Homes benefit if you held the prior homestead as of January 1 of any of the three preceding years.
- Deferral: section 197.252 lets a homestead owner apply to defer the taxes and assessments that exceed 3 percent of the prior year's household income at 65 or older (5 percent if younger), or the entire amount if household income is under $10,000 or, at 65 or older, under the senior-exemption income limit. Deferred taxes accrue interest and are a lien on the home.
Retired from the military? Start on our military site
The veteran exemptions above have paperwork of their own, VA financing can be used in retirement, and Naval Hospital Pensacola remains part of the picture for TRICARE beneficiaries. Our military division covers each in depth: Florida benefits for disabled veterans, the VA disability property tax rules, the VA loan guide, assumable VA loans and the military homestead guide. Gregg is a retired Air Force Captain; the same team runs both sites.
55-plus communities and the Fair Housing rules
Age-restricted communities are legal because federal law says so, and the test is specific. The Fair Housing Act's housing-for-older-persons exemption, 42 U.S.C. 3607(b)(2)(C), covers housing intended and operated for occupancy by persons 55 and older where at least 80 percent of the occupied units are occupied by at least one person who is 55 years of age or older.
The community must also publish and adhere to policies and procedures that demonstrate that intent, and comply with HUD's rules for verification of occupancy through reliable surveys and affidavits. A separate category covers housing intended for, and solely occupied by, persons 62 and older.
Florida's section 760.29(4) applies the same 80 percent and published-policy tests to the state's fair housing law. The current text contains no registration requirement, so a community's status rests on its own documents. Before you buy, ask for the written age-verification policy, the most recent occupancy survey, and the rules on younger residents, caregivers and inheriting family members. If a community cannot produce them, its restriction may not hold up, and neither will the assumption you bought on.
One Fair Housing note for this whole page: we describe housing, costs and documents, not who lives where. An agent should help you compare property features and your stated needs without steering based on protected characteristics.
Condo or house: the cost items that differ
The choice between a Gulf-front condo and a single-story house is mostly a choice between two cost structures, and Florida's post-2021 condominium laws have made the condo side more transparent.
Section 553.899 requires a milestone structural inspection for a residential condominium or cooperative building three habitable stories or more in height by December 31 of the year the building reaches 30 years of age, based on the certificate of occupancy, and every 10 years thereafter. A local enforcement agency may require it at 25 years where environmental conditions such as proximity to salt water warrant.
Section 718.112(2)(g) requires a structural integrity reserve study at least every 10 years for buildings three habitable stories or higher, with mandatory funding rules for the covered items. The current law also permits a narrowly conditioned temporary funding pause or reduction to fund milestone repairs. Read the study, budget and any funding vote together; do not assume a low current contribution means the obligation disappeared.
| Item | Condominium unit | Detached house |
|---|---|---|
| Insurance | Unit-owner policy; average premium $1,836 in Escambia and $1,872 in Santa Rosa (FLOIR, March 31, 2026). The master policy is funded through dues. | Homeowners policy including wind; average $3,702 in Escambia and $3,512 in Santa Rosa (FLOIR, March 31, 2026). Roof age and wind mitigation drive the quote. |
| Association dues and reserves | Monthly or quarterly dues fund operations and the reserves the structural integrity reserve study requires. Read the budget and the study. | None unless an HOA; HOA dues typically cover common areas, not your structure. |
| Structural inspections | Milestone inspection at 30 years (25 where required locally) and every 10 years after; the summary is a required resale document. | Your own inspection at purchase; roof, wind mitigation and four-point inspections for insurance. |
| Special assessments | Possible for repairs the reserves do not cover; the estoppel certificate and the FAQ sheet show what is pending. | Repairs are yours to schedule and pay directly. |
| Flood | Building coverage through the association; contents and some improvements through your own policy. Check the zone and the master policy. | A separate NFIP or private policy if the lender or the zone calls for it. |
| Disclosure and cancellation rights | Section 718.503(2): declaration, articles, bylaws, budget, milestone summary, reserve study and FAQ sheet at the seller's expense; applicable cancellation by written notice within 7 days (excluding weekends and holidays) after execution and receipt, subject to the statute's conditions. | Section 720.401: HOA disclosure summary before contract; if omitted, cancel within 3 days after receipt or before closing, whichever occurs first. |
| Maintenance and yard | Exterior and grounds handled by the association and funded by dues. | Yours, or a contracted service; single-story stock keeps the list shorter. |
The condominium statutes were amended again in the 2025 and 2026 sessions, most recently by chapter 2026-14, so read the current text or have the association's documents reviewed rather than relying on a summary. The condo due diligence checklist walks through the budget, the reserves, the insurance and the rental restrictions building by building, and the Pensacola Beach leasehold guide covers the island's lease structure.
Healthcare and getting around
Three civilian hospitals serve the area. Baptist Hospital is at 123 Baptist Way in Pensacola. Ascension Sacred Heart Pensacola describes itself as a full-service 547-bed hospital with 24/7 emergency care and a Level I trauma center. HCA Florida West Hospital is at 8383 North Davis Highway. The Andrews Institute for Orthopaedics and Sports Medicine, a Baptist Health Care affiliate, is at 1040 Gulf Breeze Parkway in Gulf Breeze.
For veterans, the Pensacola VA Clinic at 790 Veterans Way is part of VA Gulf Coast Health Care and is open Monday through Friday from 8 a.m. to 4:30 p.m. per the VA's location page. Naval Hospital Pensacola serves TRICARE beneficiaries, with access through Corry Station as of March 2026 per the hospital's site.
Assisted living facilities and nursing homes are licensed by the Agency for Health Care Administration, whose FloridaHealthFinder site lets you compare ratings and measures for certain facility types. Continuing care retirement communities are overseen by the Office of Insurance Regulation under chapter 651.
Pensacola International Airport's nonstop-flights page lists eight airlines serving the airport; routes change by season, so check the page for the cities that matter to you. Amtrak does not reach Pensacola: its Mardi Gras Service runs between New Orleans and Mobile, twice daily, with Mississippi stops and no Florida stop listed. Interstate 10 runs along the north side of the metro area.
Becoming a Florida resident
- Driver license within 30 days and vehicles within 10 days. The Florida Department of Highway Safety and Motor Vehicles states that you must obtain a valid Florida driver license within 30 days of establishing residency and title and register your vehicles within 10 days. Filing for homestead is one of the acts that establishes residency.
- Declaration of domicile. Section 222.17 lets you file a sworn statement of domicile with the clerk of the circuit court for your county. It is optional and useful when a former state questions the move.
- Voter registration. Escambia County's Supervisor of Elections is at 213 Palafox Place, second floor, Pensacola; Santa Rosa County's is at 6495 Caroline Street, Suite F, Milton, with registration online at votesantarosa.gov.
- Homestead by March 1 of the first year you own and occupy the home on January 1, with the senior exemption application filed at the same time if you qualify.
Where to start looking
The neighborhood guides describe housing stock, price context, commute, official school grades and flood and insurance notes for each area, without claims about who lives there. For a retiree the practical filters are usually single-story inventory, distance to the hospitals on North 9th Avenue and Brent Lane, whether an association handles the exterior, and whether the property is a condominium, a leasehold or a fee-simple house.
- Cordova Park and Scenic Heights and East Hill and downtown: established neighborhoods to compare for routes to hospitals and the airport.
- Gulf Breeze and Tiger Point: the peninsula across the bay, near the Andrews Institute.
- Pace and Milton, Beulah and Cantonment: newer subdivisions, many with association-maintained common areas.
- Pensacola Beach, Perdido Key and Navarre Beach: Gulf-front condominiums, with the reserve, inspection and leasehold questions above.
- Gulf Shores and Orange Beach: the Alabama option, where Gregg is also licensed and where the property tax works differently; see the three-coast comparison.
Related guides
The guides that carry each of these topics further.
Frequently asked questions
Is Florida a tax-friendly state for retirees?
On three counts, yes, by statute rather than reputation. The Florida Department of Revenue states that Florida has no personal income tax, that a federal change eliminated Florida's estate tax for people who died after December 31, 2004, and that the annual tax on intangible personal property was repealed effective January 1, 2007. Property tax and homeowners insurance are the numbers that matter, and both depend on the specific home.
What is the senior homestead exemption and who qualifies?
Section 196.075 lets a county or city adopt an additional homestead exemption of up to $50,000 for an owner who is 65 or older on January 1 and whose household adjusted gross income does not exceed an inflation-adjusted limit, $38,686 for 2026 per the Department of Revenue. A second version, for owners 65 and older who have lived on the property at least 25 years and whose just value is under $250,000, can exempt the full assessed value from the adopting government's levy.
Does the senior exemption reduce school taxes?
No. The Department of Revenue's notice states the additional exemptions for persons 65 and older do not apply to the millage of school districts or other taxing units, and the Santa Rosa County Property Appraiser repeats that it does not apply to school district taxes. It applies only to the millage of the county or municipality that adopted it, which is why two neighbors in different jurisdictions can see different savings.
What does a 55-plus community's age restriction cover?
The federal Housing for Older Persons exemption concerns occupancy and familial-status rules, not a blanket ban on younger people owning property. For the 55-plus category, at least 80 percent of occupied units must have a resident 55 or older, with published policies and reliable age verification. Florida section 760.29(4) mirrors those conditions. Ask how the actual documents treat ownership, younger occupants, caregivers and heirs; other Fair Housing protections still apply.
What should a retiree check before buying a condo in Pensacola?
Four documents the seller must provide at their expense under section 718.503(2): the milestone inspection summary if the building has had one, the most recent structural integrity reserve study, the annual budget and financial statement, and the Frequently Asked Questions and Answers sheet, plus the declaration and rules. The applicable statutory clauses require written cancellation notice within 7 days, excluding weekends and legal holidays, after both execution and receipt; request requirements and closing also matter. Have the closing professional calculate the deadline.
Is there a VA hospital in Pensacola?
The VA facility in Pensacola is the Pensacola VA Clinic at 790 Veterans Way, part of VA Gulf Coast Health Care, open Monday through Friday from 8 a.m. to 4:30 p.m. per the VA's location page. Naval Hospital Pensacola serves TRICARE beneficiaries. The three civilian hospitals are Baptist Hospital, Ascension Sacred Heart Pensacola and HCA Florida West Hospital.
Does Amtrak serve Pensacola?
Not as of September 23, 2026. Amtrak's Mardi Gras Service runs between New Orleans and Mobile with stops in Bay Saint Louis, Gulfport, Biloxi and Pascagoula, twice daily, and Amtrak's page for the service does not list Pensacola. Air travel is through Pensacola International Airport, which lists eight airlines on its nonstop-flights page.
Can I defer my property taxes in retirement?
Possibly. Section 197.252 lets a homestead owner apply to defer the portion of taxes and assessments that exceeds 3 percent of the prior year's household income if the applicant is 65 or older (5 percent if younger), and the entire amount if household income is under $10,000 or, for owners 65 and older, under the senior-exemption income limit. Deferred taxes accrue interest and become a lien, so treat it as a tool of last resort and ask the tax collector first.
Sources and references
The sources below support this guide, with read dates and any limits identified in the text. Rules and rates change: verify the current version and property-specific requirements before you act.
- Escambia County Property Appraiser: Over 65 exemption: County and City of Pensacola each list $50,000 against their own levy; $38,686 income limit for 2026 (read September 23, 2026)
- Florida Senate: 2026 section 718.112: SIRS and reserve funding, including conditioned temporary funding pauses (read September 23, 2026)
- Florida Statute 196.075, Additional homestead exemption for persons 65 and older (read September 23, 2026)
- Florida Department of Revenue: Additional Homestead Exemptions for Persons 65 and Older, income limitation table (revised January 2026): 2026 limit $38,686; not applied to school district millage (read September 23, 2026)
- Florida Department of Revenue: Property Tax Exemptions for Homesteads, PT-110 (R. 08/24): forms DR-501 and DR-501SC (read September 23, 2026)
- Escambia County Property Appraiser: Senior Exemption renewal: 2025 adjusted gross income of $38,686 or less (read September 23, 2026)
- Escambia County Property Appraiser: Homestead Brochure (June 20, 2025): senior, long-term residency and widow or widower exemptions; CPI adjustment from January 1, 2025 (read September 23, 2026)
- Santa Rosa County Property Appraiser: Exemptions: $50,000 senior exemption, 2026 income limit, March 1 deadline (read September 23, 2026)
- Florida Statute 196.202, Property of widows, widowers, blind persons, and persons totally and permanently disabled (read September 23, 2026)
- Florida Department of Revenue: Other Available Property Tax Benefits, PT-111 (R. 08/24) (read September 23, 2026)
- Florida Statute 196.24, Exemption for disabled ex-servicemember or surviving spouse (read September 23, 2026)
- Florida Statute 196.081, Exemption for certain permanently and totally disabled veterans and for surviving spouses of veterans (read September 23, 2026)
- Florida Statute 196.082, Discounts for disabled veterans (read September 23, 2026)
- Florida Statute 196.031, Exemption of homesteads (read September 23, 2026)
- Florida Statute 196.011, Annual application required for exemption (read September 23, 2026)
- Florida Statute 193.155, Homestead assessments: the 3 percent cap and portability (read September 23, 2026)
- Florida Statute 197.252, Homestead tax deferral (read September 23, 2026)
- Florida Department of Revenue: Report Tax Violations (states Florida has no personal income tax) (read September 23, 2026)
- Florida Department of Revenue: Estate Tax: no Florida estate tax for deaths after December 31, 2004 (read September 23, 2026)
- Florida Department of Revenue Tax Information Publication 07C02-01 (January 2, 2007): repeal of the annual intangible personal property tax (read September 23, 2026)
- 42 U.S.C. 3607, Religious organization or private club exemption (housing for older persons): the 80 percent, published-policy and verification tests (read September 23, 2026)
- HUD Office of Fair Housing and Equal Opportunity: Fair Housing, Equal Opportunity for All (booklet) (read September 23, 2026)
- Florida Statute 760.29, Exemptions (housing for older persons) (read September 23, 2026)
- Florida Statute 553.899, Mandatory structural inspections for condominium and cooperative buildings (read September 23, 2026)
- Florida Statute 718.112, Bylaws (structural integrity reserve study, subsection (2)(g)) (read September 23, 2026)
- Florida Statute 718.503, Developer disclosure prior to sale; nondeveloper unit owner disclosure prior to sale (read September 23, 2026)
- Florida Statute 720.401, Prospective purchasers subject to association membership requirement; disclosure required (read September 23, 2026)
- Florida Office of Insurance Regulation: Property Insurance Stability Report, July 1, 2026: average homeowners and condominium unit-owner premiums by county as of March 31, 2026 (read September 23, 2026)
- Baptist Health Care: Baptist Hospital (read September 23, 2026)
- Ascension Sacred Heart Pensacola (read September 23, 2026)
- HCA Florida West Hospital: Contact us (read September 23, 2026)
- Naval Hospital Pensacola (read September 23, 2026)
- U.S. Department of Veterans Affairs: Pensacola VA Clinic, VA Gulf Coast Health Care (read September 23, 2026)
- Andrews Institute for Orthopaedics and Sports Medicine: Contact (read September 23, 2026)
- Florida Agency for Health Care Administration: FloridaHealthFinder facility locator (read September 23, 2026)
- Florida Office of Insurance Regulation: Continuing Care Retirement Communities (read September 23, 2026)
- Pensacola International Airport: Nonstop Flights (read September 23, 2026)
- Amtrak: Mardi Gras Service (read September 23, 2026)
- Florida Department of Highway Safety and Motor Vehicles: New Resident (read September 23, 2026)
- Florida Statute 222.17, Manifesting and evidencing domicile in Florida (read September 23, 2026)
- Escambia County Supervisor of Elections (read September 23, 2026)
- Florida Division of Elections: Santa Rosa County Supervisor of Elections contact (read September 23, 2026)
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