The complete financial comparison for IN buyers considering active adult communities in Lee and Collier County — income tax, property tax, and what the numbers actually look like after the move.
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Talk to a Specialist →Indiana's relatively low income tax rate and modest property taxes mean the financial case for Florida domicile is smaller than for NJ or CT buyers. However, Indiana does tax retirement income including IRA distributions and pension income. Indianapolis and northern Indiana buyers (South Bend, Fort Wayne, Muncie) make up a meaningful portion of Fort Myers' active adult buyer base, frequently attracted by the familiar scale and value-oriented communities in Lee County that match Indiana housing value expectations.
State income tax: 3.15% flat rate → Florida: 0%. Effective property tax rate: 0.85% statewide average → Lee County ~1.10%, Collier County ~0.75%. Annual property tax on $600K IN home: approximately $5,100/yr on $600K home → Lee County ~$5,990–$6,510 → Collier County ~$4,020–$4,920. Estimated annual income tax savings: $1,800–$2,400/yr on $80K retirement income. Florida has no estate tax, no inheritance tax, and no tax on Social Security, pension income, or IRA distributions.
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Indiana is not an aggressive domicile-audit state. Standard domicile change steps apply. The income tax savings are real but modest — the lifestyle motivation (Gulf Coast winters, active adult communities) often drives Indiana buyers more than the tax calculation. To establish Florida domicile: spend 183+ days per year in Florida, obtain a Florida driver's license, register vehicles in Florida, register to vote in Florida, file a Declaration of Domicile with your Florida county clerk, and update wills, trusts, and estate documents. Work with a tax professional before your first Florida tax year.
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