Many retirees are drawn to living in Florida — a state that offers warm weather, financial perks, and a comparatively low cost of living in many cities. Jump to the best places to retire in Florida or keep reading to learn what makes the Sunshine State a good place to retire.

Is Florida a good place to retire?

Florida can be a great place to retire for those looking for a sunny climate and cheaper cost of living during retirement. According to Empower research, almost one-third of Americans plan to save money when they retire by moving to another city or state. Many retirees find Florida a good place to retire given its status as one of the most tax-friendly states in the country, and its diverse coastal and mainland cities. Still, it’s important to consider that Floridian home prices are outpacing the national average and insurance costs have been rising — insurance premiums in Florida increased 60% on average between 2019 and 2023.^1,2

Does Florida tax retirement income?

Florida does not tax retirement income as it is one of the few states without a state income tax. As a result, Florida residents are not required to pay state taxes on income sources including retirement account distributions, pensions, and Social Security income. Retirees living in Florida are still subject to federal income taxes.

What is the property tax exemption for over 65s in Florida?

Florida offers several property tax exemptions and additional benefits for people ages 65 and over. Property owners can reduce their property tax liability through:

• The Homestead Exemption: Available to all Florida residents who own property and make the home their permanent residence or the permanent residence of their dependent. Property owners may be eligible to receive a homestead exemption that would decrease the property’s taxable value by as much as $50,000.³
• Additional Homestead Exemption for people 65 and over: An additional homestead exemption of up to $50,000 is available to Florida residents who: (1) are 65 or older on January 1 of the tax year; (2) qualify for the Florida Homestead Exemption; and (3) have a total household adjusted gross income that does not exceed the annual limits.^4,5
• Long-term residency senior exemption: Florida residents may be eligible for an additional homestead exemption equal to the assessed value of the property if they: (1) are 65 or older on January 1 of the tax year; (2) own real estate with a just value less than $250,000; (3) have used the home as their permanent residence for at least 25 years; and (4) have a total household adjusted gross income that does not exceed the annual limits.^6,7 

Best places to retire in Florida

Here are 10 of the best places to live in Florida for retirees based on the population, housing, cost of living and healthcare, and amenities.^8,9,10,11

Cape Coral

• Population: 224,455
• Share of population 65+: 25%
• Median home value: $362,913
• Cost of living vs. national average: 6% higher
• Cost of living vs state average: 9% higher
• Cost of healthcare vs national average: 7% higher
• Amenities score: B+

Cape Coral is a mid-sized city in southwest Florida. Surrounded by water, Cape Coral is a quaint coastal community with more than 400 miles of canals lined with waterfront homes. Retirees who enjoy spending time outdoors can enjoy beautiful beaches, dolphin spotting, waterfront restaurants, and nature reserves.

Despite its above-average cost of living overall, Cape Coral has a median home price that’s lower than the national average, making it easier for retirees to buy their forever homes. Plus, one-quarter of the population is 65 or older, meaning retirees will have an easy time finding a strong community.¹²

Daytona Beach

• Population: 82,485
• Share of population 65+: 21.4%
• Median home value: $246,086
• Cost of living vs. national average: 1% lower
• Cost of living vs state average: 1% lower
• Cost of healthcare vs national average: 6% lower
• Amenities score: A+

Daytona Beach is a mid-sized city located on Florida’s Atlantic coast. The city offers miles of sandy beaches and is known for Daytona International Speedway, which hosts February’s iconic Daytona 500 NASCAR race. Retirees can enjoy a more affordable cost of living, healthcare, and housing compared to the national average — and take advantage of the A+ amenities Daytona Beach has to offer. 

Gainesville

• Population: 145,812
• Share of population 65+: 11.7%
• Median home value: $298,076
• Cost of living vs. national average: 6% lower
• Cost of living vs state average: 4% lower
• Cost of healthcare vs national average: 7% lower
• Amenities score: A+

Gainesville is a mid-sized city in northern Florida. Those hoping to avoid the impacts of hurricane season may find Gainesville a great place to retire, given its location in the middle of the state. Gainesville is home to the University of Florida, and residents age 60 or over can enroll in college courses at no cost, if space allows. The cost of living in the city is 6% lower than the national average and 4% lower than the rest of the state.  

Jacksonville

• Population: 985,843
• Share of population 65+: 14.7%
• Median home value: $289,190
• Cost of living vs. national average: 7% lower
• Cost of living vs state average: 5% lower
• Cost of healthcare vs national average: 14% lower
• Amenities score: A+

Jacksonville is the largest city in Florida with a population of 985,843. It is located on the Atlantic coast of northeastern Florida. The city can be considered one of the best places to retire in Florida due to its lower cost of living compared to other parts of the state, its access to healthcare, and thriving cultural scene. With a median home value of $289,190, retirees can find their forever home for 36% less than the national average.  

Palm Coast

• Population: 102,113
• Share of population 65+: 29.9%
• Median home value: $348,638
• Cost of living vs. national average: 13% lower
• Cost of living vs state average: 12% lower
• Cost of healthcare vs national average: 7% lower
• Amenities score: F

Palm Coast is a mid-size city located on the northeast coast of Florida. It is just 30 miles south of St. Augustine and 30 miles north of Daytona Beach. The city is a popular destination for retirement due to its warm weather, affordable cost of living, and range of recreational activities. Retirees make up almost one third of the population. Despite a lower amenities score, Palm Coast offers an abundance of natural attractions, beaches, and golf. The cost of living is notably lower than both the national and state averages. 

Pensacola

• Population: 53,724
• Share of population 65+: 20.8%
• Median home value: $257,567
• Cost of living vs. national average: 13% lower
• Cost of living vs state average: 11% lower
• Cost of healthcare vs national average: 14% lower
• Amenities score: A

Pensacola is a small city in northwestern Florida, known for its white sandy beaches and emerald waters. The city has a growing arts scene, as well as many outdoor recreational activities to explore, including fishing, hunting, boating, and water sports. Around one in five Pensacola residents are retirees, who can enjoy a lower cost of living than the national average. Like many cities in the Sunshine State, Pensacola is a popular place to retire, largely thanks to mild weather and a pleasant way of life.

Punta Gorda

• Population: 20,277
• Share of population 65+: 53.5%
• Median home value: $370,453
• Cost of living vs. national average: 3% lower
• Cost of living vs state average: 2% lower
• Cost of healthcare vs national average: 4% higher
• Amenities score: D-

Punta Gorda is a small city located in Southwest Florida that’s home to many retirees — over half of the city’s population is made up of people over 65. Punta Gorda offers numerous retirement communities for people 55 and over, as well as miles of canal-front homes. Those who love to be out in nature can enjoy the various wildlife centers around the city, bike trails, waterfront complexes, and more. 

Sarasota

• Population: 57,602
• Share of population 65+: 29.3%
• Median home value: $437,898
• Cost of living vs. national average: 4% higher
• Cost of living vs state average: 6% higher
• Cost of healthcare vs national average: 2% higher
• Amenities score: A+

Sarasota is a small city located south of Tampa on Florida’s Gulf Coast. The city is rich in colonial history and offers a wide variety of upscale stores and restaurants, as well as miles of white sand beaches. Inland homes tend to be more affordable than those along the waterfront, with the city’s median home value coming in at $437,898. While the cost of living is higher than the national average, many retirees find the A+ amenities, healthcare system, and culture to be worth the expense. Almost one third of Sarasota’s population is made up of retirees. 

Sebastian

• Population: 26,846
• Share of population 65+: 35.8%
• Median home value: $350,858
• Cost of living vs. national average: 5% lower
• Cost of living vs state average: 4% lower
• Cost of healthcare vs national average: 1% higher
• Amenities score: D-

Sebastian is a small city located in Indian River County. Retirees looking for a small-town atmosphere and reasonable cost of living will likely find Sebastian a great place to call home. Over a third of the city’s residents are over age 65 and the cost of living is lower than both the state and national average. Sebastian is also within a two hour drive of major metro areas like Orlando and West Palm Beach so retirees can also enjoy the amenities of neighboring cities. 

Tampa

• Population: 403,364
• Share of population 65+: 13.2%
• Median home value: $379,136
• Cost of living vs. national average: 3% lower
• Cost of living vs state average: 2% lower
• Cost of healthcare vs national average: 8% lower
• Amenities score: B-

Tampa is the third largest city in Florida with a population of 403,364. It is located on Tampa Bay, along Florida’s Gulf Coast. Hovering just below the national cost of living average, Tampa is an affordable place for retirees to enjoy their sunset years. The city also offers good healthcare options, diverse communities, and a vibrant cultural scene.  

Why do people retire in Florida?

Florida is one of America's most popular retirement states because of its unique combination of financial and lifestyle benefits. The tax advantages of living in Florida are a motivating factor for many retirees, as the state offers no state income tax or inheritance tax. While the cost of living varies by region, many of Florida’s largest cities offer coastal living at cheaper prices than the national average.