Overview
- Florida does not levy a state income tax and therefore does not tax Social Security benefits, a policy that contributes to its low per-capita state and local tax burden as measured by the Tax Foundation.
- New York also excludes Social Security from state income tax but collects the highest per-capita state and local taxes in the country, which raises property and sales tax pressure on retirees living on fixed checks.
- The Tax Foundation’s 2026 data show a striking contrast in per-capita revenue, with Florida near the bottom of state and local tax collections and New York at the top, and those totals help explain why identical portfolios can buy very different living standards.
- Non-income costs change retirement math: Florida’s homeowners insurance is among the nation’s highest because of hurricane risk, and New York suburbs can carry five-figure property tax bills that may exceed a month’s combined Social Security for many households.
- Both articles warn that the common 4% withdrawal rule can force retirees to sell assets in down markets and recommend an income-first approach that builds a cash floor from Social Security, dividends, and interest to protect essential spending.