The complete financial comparison for MI 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 →Michigan's 4.25% flat income tax applies to pension income and IRA distributions. Detroit and Grand Rapids metro buyers face property taxes of $6,000–$14,000/year. Michigan is consistently in the top 10 feeder states for Southwest Florida — particularly Fort Myers where the price point for quality active adult communities ($300K–$600K) matches Michigan buyers' budgets well.
State income tax: 4.25% flat rate → Florida: 0%. Effective property tax rate: 1.54% statewide average → Lee County ~1.10%, Collier County ~0.75%. Annual property tax on $600K MI home: approximately $9,240/yr on $600K home → Lee County ~$5,990–$6,510 → Collier County ~$4,020–$4,920. Estimated annual income tax savings: $2,600–$3,400/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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Michigan is not among the aggressive domicile-audit states. Standard domicile change steps apply. Michigan retirees who own a Michigan vacation cabin or family cottage and spend summers there should be careful about day counts — 183+ days in Florida is required. 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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