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Talk to a Specialist →New Jersey vs. Florida — the real comparison for retirees
New Jersey is the highest effective property tax state in the United States by most measures. Effective rates of 1.8%–2.5% are common across Bergen, Morris, Essex, Monmouth, Ocean, and Middlesex counties. A $500,000 New Jersey home can carry a $9,000–$12,500 annual property tax bill. A comparable Florida purchase at the same price carries roughly $4,320–$4,800 after homestead.
New Jersey levies state income tax at graduated rates up to 10.75% — one of the highest state income tax rates in the country. Social Security is exempt from New Jersey income tax, which is a meaningful distinction from some other high-tax states. However, pension income above certain exclusion amounts is taxable in New Jersey; IRA withdrawals are taxable; and investment income is taxable.
Florida has no state income tax. Zero. On pension income, IRA distributions, interest, dividends, and capital gains: Florida collects nothing at the state level.
| Tax Category | New Jersey | Florida (Palm Coast / Daytona) |
|---|---|---|
| State Income Tax | 1.4%–10.75% graduated; up to 10.75% on income over $1M | None |
| Social Security (state) | Exempt from NJ income tax | Not taxed |
| Pension Income (state) | Excluded up to $75K (married) for income under $150K; taxable above that | Not taxed |
| IRA Withdrawals (state) | Taxable | Not taxed |
| Property Tax Rate | ~1.8%–2.5% effective (no homestead exemption) | ~0.96–1.05% after $50K homestead |
| Inheritance Tax | NJ inheritance tax on non-spouse/non-child beneficiaries; estate tax repealed 2018 | No state inheritance or estate tax |
What New Jersey retirees actually save on property tax alone
The property tax savings from moving from New Jersey to Palm Coast or Daytona Beach can be substantial — and unlike the income tax savings, the property tax comparison is more straightforward.
A $550,000 home in Monmouth County carries an effective property tax rate of approximately 1.9%, producing a bill of roughly $10,450/year. A $450,000 home at Latitude Margaritaville in Volusia County carries an estimated first-year buyer's tax of approximately $3,840/year after homestead. The annual property tax savings in this comparison: approximately $6,610/year. Over 20 years: $132,200 — before accounting for New Jersey's annual tax increases vs. Florida's 3% Save Our Homes cap.
The Pension Exclusion Math — Where It Gets Specific
New Jersey excludes pension income from state tax up to $75,000 for married couples filing jointly with gross income under $150,000. If your combined pension plus other income exceeds $150,000, the exclusion phases out. In Florida, there is no income threshold — pension income is never taxed at the state level. For New Jersey retirees with pension income above the NJ exclusion threshold, Florida's zero income tax rate produces meaningful annual savings.
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What New Jersey home equity buys in Palm Coast and Daytona Beach
Many New Jersey retirees hold substantial equity — Bergen, Morris, Monmouth, and Ocean county homes have appreciated significantly and often carry low remaining mortgage balances for long-term owners. Here is what that equity translates to in the northeast Florida market.
Equity Conversion Example — Monmouth County to Palm Coast
In this example, the buyer purchases free and clear with nearly $195,000 in remaining cash. Monthly carrying costs at Reverie (HOA ~$210, tax ~$271, insurance ~$185) run approximately $666/month — compared to $871+/month in NJ property tax alone on the original home.
Where New Jersey retirees tend to land
New Jersey retirees in the Palm Coast / Daytona Beach market split between two orientations. Ocean County and South Jersey buyers moving to escape high property taxes but wanting a familiar shore-adjacent lifestyle often gravitate toward Latitude Margaritaville — the beach club access and coastal setting feel familiar, and the brand-name community provides an immediate social network of fellow Northeasterners.
North Jersey and suburban buyers who are primarily motivated by the tax savings and lower carrying costs often find Palm Coast more appealing. The community is quieter, costs less, and — for buyers who aren't focused on the beach access — offers a comfortable, maintained environment without the resort premium.
The NJ-to-FL Community Math in One Comparison
Latitude Margaritaville at $460,000 purchase: approximately $975–$1,050/month in carrying costs excluding mortgage (HOA ~$340, tax ~$352, insurance ~$275, CDD ~$110). Palm Coast Reverie at $370,000: approximately $640–$730/month (HOA ~$210, tax ~$271, insurance ~$185). Annual difference: $4,020–$3,840. Over 10 years: $38,400–$40,200. Whether that buys amenities you'll use daily or is money you don't need to spend is the real decision.
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Get Free Research Help →Tax comparisons are general estimates based on published New Jersey and Florida tax rates. New Jersey pension exclusion thresholds are current as of 2025 and subject to legislative change. Individual tax situations vary — consult a CPA specializing in interstate moves before making residency decisions. Property tax estimates use publicly available county data. Nova55Living does not provide tax or legal advice.