Another great reason to retire in Florida (especially Cape Coral) is because it’s one of a few low tax states!
In 2010, the average Cape Coral resident paid about $1,436 in property taxes. They also enjoyed paying no state income tax since Florida is one of 7 states that do not tax individual incomes.
A 6% sales tax, which ends up including many tourist dollars, helps to offset the lack of a state income tax.
Fortunately, Florida residents also avoid any inheritance or estate taxes. Taken as a whole, the local and state tax burden is very low in Florida.
In fact, The Tax Foundation estimates that Florida ranks 47 (out of 50), making it one of the lowest taxed states in the entire country. Furthermore, Florida’s successful Save Our Homes law has attracted thousands of people from other states.
Basically, the law limits the increase in a home’s assessed value to 3% a year. That means, even if property values are rising quickly, your tax burden won’t! When did this law take effect?
The Save Our Homes law was actually spearheaded by Lee County’s Kenneth M. Wilkinson, C.F.A. Mr. Wilkinson authored and led the campaign to get the law approved by Florida voters. Save Our Homes was approved in 1992 and enacted in 1995.
Since that time, Lee County has protected over $8.5 billion dollars of local home values. To qualify the Save Our Homes provision, you must be a full-time resident of Florida.
In Lee County, you can apply for a homestead tax exemption online (navigate to taxpayer services), by mail or in person. You will need to prove your residency with your Florida driver’s license, your voter’s registration, your Florida license tag and other documentation.
If you have more than one property, or rent your home to others, you may not qualify for the exemption. There are a few other rules to be aware of.
Your Cape Coral Realtor® will be able to provide you more detailed information about tax rates or how the Save Our Homes law works.
In my unbiased opinion , Florida is the best low tax state in the union and Cape Coral is perfect especially if you have a boat and want to retire in a canal-front home.
Please download my free eBook to your right for 11 other great reasons to retire in Cape Coral or contact me online for a tour of this beautiful, low cost, city!