Compare taxes and see how much you save moving from Michigan to Florida
Florida has significantly lower property taxes than Michigan — 0.86% average versus Michigan's 1.32%. On a $400,000 home, that saves approximately $1,840/year in property tax by moving to Florida. Combined with Florida's lack of state income tax (versus Michigan's flat 4.25%), most Michigan households moving to Florida save $4,000–$12,000/year in total taxes. Florida's Save Our Homes cap (3% annual limit on assessed value increases for primary residences) provides excellent long-term protection, making Florida increasingly attractive the longer you stay.
Avg Effective Rate
Proposal A (1994) caps assessment growth at 5% or CPI; millage rates vary by district
Avg Effective Rate
Save Our Homes 3% cap for homesteaded residents; no income tax
At $400,000 home income:
Florida saves on property tax
| Income | MI Tax | FL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $250,000 home | $3,300 | $2,150 | $1,150 | $11,500 |
| $350,000 home | $4,620 | $3,010 | $1,610 | $16,100 |
| $400,000 home | $5,280 | $3,440 | $1,840 | $18,400 |
| $500,000 home | $6,600 | $4,300 | $2,300 | $23,000 |
| $650,000 home | $8,580 | $5,590 | $2,990 | $29,900 |
| $800,000 home | $10,560 | $6,880 | $3,680 | $36,800 |
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Moving from Michigan to Florida? Establishing Florida domicile, timing the move for maximum tax benefit, and handling the partial-year Michigan and Florida returns all need careful planning. Get matched with a CPA who specialises in state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On a $400,000 home, moving from Michigan to Florida saves approximately $1,840/year in property tax alone (Michigan ~$5,280 vs Florida ~$3,440). Add in income tax: Michigan charges a flat 4.25% on income; Florida charges 0%. A retiree with $70,000 in taxable income saves approximately $2,975 in Michigan state income tax by becoming a Florida resident. Combined property and income tax savings are typically $4,000–$8,000+/year for middle-income Michigan retirees moving to Florida.
Michigan's Proposal A (1994) caps the annual increase in a home's State Equalized Value (SEV) — the taxable value — at either 5% or the rate of inflation, whichever is lower. When a property is sold, it resets to full SEV. This means longtime Michigan owners often pay tax on a value well below their home's market price. However, buyers inherit the full market assessment, meaning new purchases in appreciating markets can carry high tax bills. Unlike California's Prop 13, Proposal A does not cap the base rate at 1% — Michigan's underlying millage rates are higher.
Florida property tax rates vary significantly by county and city. Lower-tax areas: Walton County (Northwest FL, Destin area) approximately 0.6–0.7% effective; Dixie, Jefferson, and Taylor counties (rural North FL) under 0.8%. Higher-tax urban areas: Broward County (Fort Lauderdale) approximately 1.0–1.1%; Miami-Dade approximately 1.0%; Palm Beach approximately 0.9%. For retirees, areas like Sarasota (~0.8%), Naples/Collier County (~0.7%), and Southwest Florida generally offer competitive property tax rates alongside desirable amenities.
Michigan's principal residence exemption (PRE) removes 18 mills of school operating tax from a primary home — typically saving $1,800–$3,000/year depending on value. For seniors: the Michigan Homestead Property Tax Credit provides a credit of up to $1,600 for qualifying low-to-moderate income homeowners (income below $63,000 in 2024), including retirees. For those 65+, there is a Senior Citizen Homestead Exemption in some municipalities. However, these are relatively modest compared to Florida's income tax advantage for retirees — most Michigan retirees still save substantially by relocating to Florida.