Florida’s tax-friendly climate continues to attract new residents and businesses
Posted on September 16, 2025
Florida’s appeal extends beyond its beautiful Gulf Coast beaches and warm climate. The state’s favorable tax structure and robust economy make it an ideal destination for retirees, growing families and privately held businesses. Florida Trust Wealth Management regularly assists clients in transitioning to Florida as their domicile.
Population growth and migration trends
As of 2025, Florida’s population has reached approximately 23.8 million, solidifying its position as the third most populous state in the U.S. This growth is fueled by ongoing domestic migration, with a significant number of individuals relocating from higher-tax states. For instance, in the first quarter of 2024, South Florida counties saw 16,906 out-of-state driver license exchanges, a 6% increase compared to the same period in 2019.
Tax advantages of Florida domicile
Florida remains one of nine states that do not impose a state income tax, providing substantial savings for residents. Additionally, Florida does not levy a state-level estate or inheritance tax, making it particularly attractive for wealth preservation and estate planning.
Recent tax developments
1. Commercial lease tax reduction
June 1, 2024, the state sales tax rate on commercial real property lease payments decreased from 4.5% to 2.0% and is due to decrease to 0% under new Florida legislation, HB 7031, which repeals the “business rent tax” completely effective Oct. 1, 2025. This reduction applies to leases of office spaces, warehouses and self-storage units, providing significant relief to business owners. At Florida Trust Wealth Management, the Family Office Services team works with the business owner and members of the family to consider what the future will look like for each individual. The team sets up the necessary accounts and considers what types of trusts will help to strategically mitigate taxes.
2. Corporate income tax alignment
Florida has updated its corporate income tax code to align with the federal Internal Revenue Code as of January 1, 2024. This synchronization ensures consistency between state and federal tax computations for corporations operating in Florida.
Just as your CFO monitors monthly numbers, a Family Office partner can see patterns over multiple decades – and help you plan accordingly.
Accolades for Florida cities
In case the favorable tax structure was not compelling enough for retirees looking to establish domicile in the state, the reviews are in – it’s also a beautiful and idyllic place to call home.
Naples
Naples has been recognized as the No. 1 Best Place to Live in the U.S. for 2024-2025 by U.S. News & World Report. The city boasts beautiful beaches, a strong job market and a high quality of life, making it a top choice for both retirees and working professionals.
Fort Myers
Fort Myers also earned a spot on U.S. News & World Report’s list, ranking No. 37 in Best Places to Live and No. 24 in Best Places to Retire for 2024-2025. The city offers a vibrant downtown area, access to beautiful beaches and a growing economy.
Sanibel
Sanibel Island has been recognized by Southern Living as one of the top beach towns in the South for 2025, highlighting its pristine environment, charming community and appeal to both residents and visitors.
Florida’s consistent population growth and favorable tax environment continues to attract individuals and businesses seeking financial efficiency and economic opportunity. With recent legislative changes enhancing its appeal and cities like Naples, Fort Myers and Sanibel receiving national recognition, Florida remains a top choice for those considering a change in domicile.
Call today to be connected with a team member to learn more.
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