$62,115 difference over 30 yearsFor one couple (both 60, $2M, 60/40, $80,000 a year to spend after tax), QuantCalc's 51-state planner study found a median 30-year income-tax bill (federal + state + IRMAA) of $224,712 in New York and $162,597 in Florida — Florida is the cheaper state by $62,115.
New York vs Florida at a glance
| Factor | New York | Florida |
|---|---|---|
| State income tax | 10.90% top | None |
| Taxes Social Security | No | No |
| Taxes 401(k)/IRA | Yes | No |
| State estate/inheritance tax | Yes | No |
| Tax on $100k withdrawal | $2,041/yr | $0/yr |
| Retirement-friendliness | high tax | tax free |
| 30-yr median income tax, federal + state + IRMAA (MC) | $224,712 | $162,597 |
| 30-yr state income tax (MC) | $60,156 | $0 |
| 30-yr success rate (MC) | 82.88% | 84.05% |
| Median balance at 90 (MC) | $2,032,659 | $2,153,150 |
The income-tax difference, year by year
The simplest way to see the gap: take a married couple, both 65, whose only income is a $100,000 IRA withdrawal split evenly between them. On that withdrawal New York collects $2,041 in state income tax and Florida collects $0 — a difference of $2,041 every year. Both figures are QuantCalc's state tax engine run on the couple's whole 2026 return in each state, so each state's own brackets, deductions, retirement-income exclusions and credits apply. The highest top brackets in the country, a retirement income exclusion from age 59, and a $6.94M estate cliff. No state income tax, no estate tax, a primary FIRE destination.
Over a 30-year retirement, QuantCalc's 51-state planner study (one couple, identical portfolio and after-tax spending in both states, only the state changes; every year priced by the planner's federal and state tax engines) puts the median income-tax difference at $62,115.
Beyond income tax
State income tax is only part of the retirement-cost picture. When comparing New York and Florida, also weigh:
- Property tax — a tax-free-income state can still have high property tax; factor your home value.
- Sales tax — affects every dollar you spend, not just income.
- Estate / inheritance tax — New York: has one; Florida: none. Matters for larger estates.
- Roth conversion cost — converting in the lower-income-tax state of the two cuts the state tax on each converted dollar. See conversion-tax scenarios.
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Deep-dive either state: New York retirement tax guide · Florida retirement tax guide. Or see the full 50-state comparison and the 51-state Monte Carlo study.
FAQ
Is New York or Florida better for retirement taxes?
On income tax, Florida is the lighter-tax state. In QuantCalc's 51-state planner study, one couple (both 60, $2M, $80,000 a year to spend after tax) pays a median $162,597 of federal and state income tax and IRMAA over 30 years in Florida versus $224,712 in the other — a $62,115 difference on identical income and spending.
Does New York tax Social Security and 401(k) withdrawals?
New York does not tax Social Security benefits and taxes 401(k)/traditional IRA distributions at the state level. The highest top brackets in the country, a retirement income exclusion from age 59, and a $6.94M estate cliff.
Does Florida tax Social Security and 401(k) withdrawals?
Florida does not tax Social Security benefits and exempts 401(k)/traditional IRA distributions at the state level. No state income tax, no estate tax, a primary FIRE destination.
How much would moving from New York to Florida save on retirement taxes?
For a married couple, both 65, whose only income is a $100,000 IRA withdrawal split evenly between them, the state income tax is $2,041 in New York versus $0 in Florida — $2,041 per year of difference. Over 30 years, the planner study's median income-tax gap was $62,115. Don't forget property tax, sales tax, and estate tax also differ — see the table above.
Last updated 2026-10-12. State tax data 2026 (Tax Foundation + state DoR); the withdrawal figures are QuantCalc's state tax engine. Monte Carlo figures from the QuantCalc 51-state planner study (v2026.3, re-run 2026-10-12, CC-BY-4.0): one couple, both 60, $2M, 60/40, $80,000 a year to spend after tax, in each state. Educational only, not tax advice.