One caveat before the numbers: I am a real estate broker, not a CPA. Use this guide to ask better questions, then confirm your specific situation with a tax professional. I connect every transition client with one.
Market snapshot: property tax medians per Ownwell, updated April 2026. New Jersey retirement exclusion rules per the NJ Division of Taxation, 2026. Florida amendment details per the 2026 legislative special session.
Income Tax: The Biggest Line for Most Movers
Florida has no state income tax. It is written into the state constitution, which is why it survives every budget cycle.
New Jersey's brackets run from 1.4 percent to 10.75 percent. Where you land depends on income, but for anyone still working, drawing significant retirement account income, or selling a business or investment property, this is usually the largest number in the entire comparison.
Two groups should look hardest at this line.
Working owners and remote workers: establishing Florida residency ends New Jersey tax on income earned after the move, but income sourced to New Jersey or New York stays taxable there under multi-state rules. If you plan to keep a northern income stream remote from Florida, the sourcing rules decide your savings, and they are unforgiving. This is CPA territory before you list, not after.
Owners drawing retirement income: the comparison is closer than the headline suggests, because of the next section.
Retirement Income: New Jersey Is Kinder Than You Think, Until It Is Not
New Jersey does not tax Social Security benefits. It also offers a retirement income exclusion that shelters pension, annuity, and IRA withdrawals for taxpayers 62 and older: up to $100,000 for a married couple filing jointly, or $75,000 for a single filer, when total income is $100,000 or less.
Then comes the cliff. Between $100,000 and $150,000 of income, the exclusion phases down sharply, 50 percent then 25 percent for joint filers. Above $150,000, it disappears entirely. One dollar over the line can change the tax picture on the entire withdrawal stream.
Total income | Joint filer exclusion |
|---|---|
$100,000 or less | Up to $100,000 |
$100,001 to $125,000 | 50 percent |
$125,001 to $150,000 | 25 percent |
Above $150,000 | None |
The practical read: a couple living on Social Security plus modest withdrawals may pay little or no New Jersey income tax today, and the Florida income tax savings for them are smaller than advertised. A couple drawing larger distributions, or facing required minimum distributions that will push them past $150,000, sees Florida's zero on this line as real money every year.
Property Tax: Where the Gap Is Structural
The county numbers tell the story. Bergen County's median annual property tax bill is $11,614 at a 2.68 percent effective rate. Hudson County's is $8,755 at 2.25 percent. Broward County's is $4,889 at 1.44 percent, and Palm Beach County's is $4,412 at 1.20 percent.
Florida then adds structure New Jersey does not have. A homesteaded primary residence gets the homestead exemption, currently up to $50,000 of value. The Save Our Homes cap holds assessed value growth on that homestead to 3 percent per year regardless of the market, and long-term owners watch their assessed value fall further behind market value every year. Florida even offers portability, letting you move accumulated Save Our Homes savings to a new Florida homestead.
New Jersey has no assessment cap and no equivalent exemption at these scales. The full county-by-county math is in my comparisons of Bergen County vs Broward County and Bergen County vs Palm Beach County.
Now the 2026 wildcard. On November 3, 2026, Florida voters decide a constitutional amendment that would raise the homestead exemption for non-school taxes from $50,000 to $150,000 in 2027, then $250,000 in 2028. It needs 60 percent approval. If it passes, the property tax gap widens dramatically for primary residents. Build your plan on current law, and treat passage as upside.
Estate and Inheritance: The Quiet Line
Florida has no state estate tax and no inheritance tax.
New Jersey repealed its estate tax in 2018, but the inheritance tax survived. It generally spares spouses, children, grandchildren, and parents, and it reaches other beneficiaries, siblings, nieces and nephews, friends, at rates that climb to 16 percent. For owners planning to leave assets outside the immediate line, Florida residency removes that exposure.
Estate planning documents also need a Florida refresh after the move: wills, powers of attorney, and healthcare directives should reflect Florida law and Florida domicile. An estate attorney belongs on the transition team alongside the CPA.
The Exit: One Last New Jersey Line Item
Selling the New Jersey home on the way out triggers the so-called exit tax, which is a prepayment, not a penalty. Nonresident sellers prepay the greater of 10.75 percent of the taxable gain or 2 percent of the sale price at closing. Most primary residence sellers owe nothing, because gains within the federal Section 121 exclusion are exempt with the right certification, and sellers who close while still New Jersey residents settle through their regular return instead.
The mechanics, the forms, and the refund process are in the NJ exit tax explainer. The short version: plan the sequence before you list, and the exit tax becomes a paperwork item instead of a five-figure surprise.
Putting the Ledger Together
Here is how I frame it for clients, conclusion first.
The move is tax-favorable for almost every long-term New Jersey homeowner, but the size of the win ranges from modest to enormous depending on your income profile. Property taxes alone save $4,000 to $7,000 per year at the county medians. Income tax savings range from near zero, for a household fully sheltered by New Jersey's retirement income exclusion, to six figures over a decade for high earners and big-distribution households. The estate line matters in some situations and not others.
What claws part of it back: Florida homeowners insurance, which runs several times New Jersey levels, and association fees in many Florida communities. The tax ledger and the insurance ledger have to be read together, which is why the full cost of living comparison belongs next to this page.
Timing decides the rest. When you sell, when residency changes, and when distributions land can each move the outcome by thousands, and it all keys off what the sale can fund, which is why an accurate home valuation comes first. That sequencing is the core of the selling-first strategy I recommend to most transition clients.
The tax code rewards the prepared. It has no mercy on the rushed.
Ready to See Your Ledger?
Five taxes, one decision. The NJ to FL Transition Plan puts your actual numbers into this framework, with a CPA in the loop and one advisor licensed on both ends of the move.
Start with the seven-question assessment at quiz.sellecksellsnj.com, or schedule a consultation and we will build the ledger around your profile.
The Three Pillars Behind Every Good Relocation Decision
Every NJ to Florida decision sits where timing, cash-flow, and lifestyle fit meet. Work all three or the math stops holding.
Timing & Strategy
Residency timing, sale timing, and distribution timing each move the tax outcome by thousands. Start with the seven-question assessment at quiz.sellecksellsnj.com.
Financing & Cash-Flow
The retirement income exclusion threshold decides how large the income tax win actually is. See the advisory approach at scott.sellecksellsnj.com.
Lifestyle & Location Fit
The destination county sets the property tax line, and the counties differ meaningfully. Compare towns in the guides at communityguides.sellecksellsnj.com.
Frequently Asked Questions
How much do you save on taxes by moving from New Jersey to Florida?
It ranges widely by profile. Property taxes alone save $4,000 to $7,000 per year at the county medians, comparing Bergen County's $11,614 median bill with Broward's $4,889 and Palm Beach's $4,412. Income tax savings depend on earnings: Florida taxes none, while New Jersey's brackets reach 10.75 percent, though New Jersey shelters Social Security and much retirement income below $150,000.
Does New Jersey tax Social Security or retirement income?
New Jersey does not tax Social Security benefits. Pension, annuity, and IRA withdrawals qualify for an exclusion of up to $100,000 for joint filers 62 and older with total income of $100,000 or less, phasing down between $100,000 and $150,000 and disappearing above $150,000.
What is the Florida homestead exemption worth?
Currently up to $50,000 of value for a primary residence, plus the Save Our Homes cap holding assessed value growth to 3 percent per year. A November 3, 2026 ballot amendment would raise the non-school exemption to $150,000 in 2027 and $250,000 in 2028 if 60 percent of voters approve.
Do you pay a tax penalty for leaving New Jersey?
No. The exit tax is an estimated tax prepayment collected when a nonresident sells New Jersey property, the greater of 10.75 percent of gain or 2 percent of sale price. Most primary residence sellers are exempt under the federal Section 121 exclusion, and overpayments are refundable.
When should I establish Florida residency for tax purposes?
Residency is a facts-and-circumstances test involving your domicile, time in state, and ties to each state, and the timing interacts with your home sale and your income. Work through the sequence with a CPA before listing the New Jersey home, because the order of events changes the outcome.
This article is general information, not tax or legal advice. Tax outcomes depend on your specific situation and the law in effect when you act. Consult a CPA and an estate attorney before making decisions.
Top 5 Sources
- New Jersey Division of Taxation, retirement income exclusions, 2026.
- Ownwell, Bergen, Hudson, Broward, and Palm Beach County property tax data, updated April 2026.
- Barnes Walker, Florida property tax update, 2026 legislative session.
- Scott Selleck Foundation Document for voice, positioning, and advisory framing.
- Scott Selleck Link Directory for CTA structure, internal linking, and required site references.
