Florida does not have a state estate tax

Florida imposes no tax on the transfer of property when someone dies. This means that if you inherit money, real estate, or other assets from a Florida resident, you will not owe Florida state tax on that inheritance. The federal government may still tax very large estates, but Florida itself does not.

This is one of the reasons Florida attracts retirees and wealthy residents from other states. Nine states currently impose estate taxes, and Florida is not one of them. If you are moving to Florida or own property there, understanding this distinction matters because it affects what your heirs will actually receive.

Key Takeaways

  • Florida has no state estate tax, so your heirs will not owe Florida tax on what they inherit from you.
  • The federal estate tax still applies to very large estates (over $13.61 million in 2024), regardless of where you live.
  • If you owned property in another state before moving to Florida, that state may still tax your estate based on property located there.
  • Your will and trust documents should be reviewed by an attorney familiar with Florida law to ensure they work correctly for your situation.

How the federal estate tax differs from state estate tax

The federal government taxes estates larger than a certain threshold. In 2024, that threshold is $13.61 million per person. If your estate is smaller than that amount, your heirs owe no federal estate tax. If it is larger, the federal government taxes the amount above the threshold at a rate of 40 percent.

This federal threshold changes every year and is scheduled to drop significantly in 2026 unless Congress acts. Because Florida has no state estate tax, you only need to worry about the federal tax if your estate is very large. Many Florida residents with moderate to substantial wealth will never trigger federal estate tax at all.

What happens if you owned property in another state

If you lived in another state before moving to Florida and still own real estate there, that state may tax your estate based on the property located within its borders. For example, if you own a rental house in New York and die, New York may impose its own estate tax on that property even though you are a Florida resident.

The same rule applies if you own a business, investment accounts, or other assets in a state with an estate tax. Your executor or trustee will need to file tax returns in any state where you owned taxable property. This is why it matters to know which states have estate taxes and what property you hold in each one.

States that currently have estate taxes

Twelve states and the District of Columbia currently impose estate taxes: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia. Each state sets its own threshold and tax rate. Some states tax estates starting at $1 million; others start at $5 million or higher.

If you have lived in or own property in any of these states, your estate may be subject to that state's tax even if you are now a Florida resident. You should review your property holdings and residency history with an estate planning attorney to understand your full tax picture.

Why Florida residents should still plan their estates

The absence of a state estate tax does not mean you need no estate planning. You still need a will or trust to direct who receives your property, to name a guardian for minor children, and to appoint someone to manage your estate. Without these documents, Florida law determines who inherits your property, and the process may take longer and cost more.

If you have a spouse, children, or significant assets, an estate plan also helps you minimize federal estate tax if your estate is large enough to trigger it. Trusts, lifetime gifts, and other strategies can reduce the amount your heirs owe to the federal government. An attorney licensed in Florida can review your situation and recommend the right approach for you.

How to learn about your estate will owe federal tax

Add up the value of everything you own: your home, bank accounts, investments, retirement accounts, life insurance, and any other property. Subtract what you owe on mortgages, loans, and other debts. The result is your gross estate value. If that number is close to or above $13.61 million, you should speak with an estate planning attorney or tax professional about strategies to reduce federal tax.

Keep in mind that the federal threshold is scheduled to drop to around $7 million per person in 2026 unless Congress changes the law. If your estate is between $7 million and $13.61 million, you may want to plan now rather than wait. An attorney can explain your options and help you decide what makes sense for your family.

Frequently Asked Questions

Do I need to file a Florida estate tax return?

No. Florida does not require an estate tax return. However, if your estate is large enough to owe federal estate tax, your executor will need to file a federal estate tax return (Form 706) with the IRS, regardless of where you live.

If I move to Florida, will my old state tax my estate?

Your former state may tax property you still own there. Some states also tax based on where you lived when you died, not just where your property is located. An attorney in your former state or a tax professional can tell you whether you still owe tax there.

Does Florida tax inherited money?

No. The person who inherits money does not owe Florida tax on it. The only tax that might apply is federal estate tax, which is paid by the estate itself before money is distributed to heirs, not by the heirs afterward.

What if I have a trust instead of a will?

A trust is not taxed differently than a will in Florida. Neither one triggers a state estate tax. However, a trust may help you avoid probate and can provide other benefits. An attorney can explain whether a trust makes sense for your situation.

Should I move my assets to Florida to avoid estate tax?

Moving to Florida can help you avoid state estate tax, but it is not automatic. You must establish Florida residency, which typically means living there for more than six months per year and changing your driver's license, voter registration, and other documents. Consult an attorney before making this move for tax reasons.