The Financial Benefits of a Florida Domicile

an older couple speaking with their lawyer at their kitchen table about florida domicile

Enjoy the financial benefits of a Florida domicile with the help of The Millman Law Group.

If you plan on making Florida your primary home because you love the warm weather and beautiful scenery, you may benefit from making Florida your domicile. Rather than making Florida a vacation destination for a few times a year, you can establish a residence in Florida and then declare it as your domicile to enjoy numerous financial benefits that impact estate planning and other factors. At The Millman Law Group, we have seen how a Florida domicile can impact a family’s future. If you are considering making Florida your domicile, contact The Millman Law Group to discuss where to start. Once you establish your domicile, you can enjoy the following benefits. 

Income Taxes

Florida is a tax-friendly state, especially for those with large estates. It is only one of nine states in the country that currently do not levy a state income tax. At the same time, Florida’s sales and property tax rates remain close to the national average.

Those who choose to retire in Florida can enjoy tax-free (at the state level) retirement income, including Social Security, IRA or 401(k) distributions, pension payouts, and more. When you are officially domiciled in Florida, you can enjoy these benefits as an established state resident. 

Estate Taxes 

Florida also does not impose a state inheritance or estate tax. In 2024, the federal estate tax exemption limit will be $13,610,000 per individual. If your estate is below this threshold, it is not subject to federal tax either. 

Homestead Tax Exemption 

With the homestead tax exemption, people who establish a Florida domicile, which states that their primary residence is in Florida, can save thousands in property taxes every year. How does it work? The first $25,000 of the home’s value is exempt from property taxes. You may exempt an extra $25,000 from non-school property taxes for an assessed value between $50-75,000. Residents over age 65 may be eligible to exclude a further $50,000 from their property’s value. 

Homestead Protection 

In addition to substantial tax savings, your Florida homestead may be eligible for Homestead Protection. This protects your residence from creditors, so they cannot force the sale of your home to satisfy debts. Additionally, when you pass away, your homestead property may pass to your beneficiaries without being subject to creditor claims.

Limited Property Assessment Raises

Florida’s Save Our Homes law limits how high a homestead’s assessed value can increase in a given year. A property’s value cannot increase more than 3% annually or the Consumer Price Index, whichever value is less. Placing a cap on the valuation of your homestead can help you save big on property taxes every year. 

How to Declare Florida Domicile 

If you want to make Florida your domicile, the first thing to do is file a Declaration of Domicile in your county. This alone isn’t enough to prove your intentions, but it is a critical first step. Next, you may obtain a homestead exemption (Form DR-501), which allows you to declare your Florida residence as your homestead. Additional ways you may establish Florida domicile include: 

  • Register to vote in your county
  • Obtain a Florida driver’s license or ID card 
  • Establish Florida bank accounts 
  • Transfer car insurance and registration to Florida 
  • Update insurance policies to reflect your Florida residence 

At The Millman Law Group, we provide our clients with an extensive checklist of items that help you establish your Florida domicile. Don’t hesitate to contact our skilled and experienced team of attorneys to manage your Florida domicile journey. 

Estate Planning Made Easy With Millman Law Group

Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.