Head-to-head
Texas vs Florida
Texas's 2024 price level is 6.357 points below Florida's (97.057 vs 103.414), and the two-bedroom rent median is $269 a month lower; neither state taxes wages, so homestead rules and rents decide the difference.
Updated
| Measure | Texas | Florida | First − second |
|---|---|---|---|
| All-items price level | 97.057 | 103.414 | −6.357 points |
| Rent price level | 96.503 | 122.107 | −25.604 points |
| Home value | $283,800±$738 | $359,000±$930 | −$75,200 |
| Two-bedroom gross rent | $1,395±$5 | $1,664±$7 | −$269 |
| Household income | $78,476±$263 | $74,568±$284 | +$3,908 |
| Real estate taxes paid | $4,232±$19 | $2,730±$10 | +$1,502 |
$4,000 of monthly spending in Texas scales to $4,262 in Florida at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
Texas vs Florida: rents, homesteads and two sales-tax states
Goods cost the same in both states, 98.083 in Texas and 98.059 in Florida, a gap of 0.024 points. The difference is rent: Florida's rent parity is 122.107 against Texas's 96.503, a 25.604-point gap, and other services are 4.243 points dearer in Florida. Texas renters save $269 a month at the median, and Florida renters spend 35.2% of income on gross rent, the highest share in the country, against 30.9% in Texas.
Owners face the reverse. The median home value is lower in Texas, $283,800 against $359,000, but the median real estate tax paid is higher, $4,232 against $2,730, a $1,502 difference. Owners without a mortgage report almost identical median monthly costs, $678 and $673. The homestead exemptions explained below drive much of that gap, and Florida's insurance and association costs, which these statistics omit, can offset part of it. Get the parcel's assessment and the actual insurance quote before comparing purchases.
Both states fund themselves through sales. General sales supplied 62.8% of Texas's fiscal 2025 state collections and 62.9% of Florida's. Texas's 6.25% state rate can carry up to 2% in local tax; Florida's 6% general rate carries county surtaxes. Per resident, the two collected $2,836 and $2,709.
Incomes are close, Texas ahead by $3,908 at the household median and $1,088 per person after prices.
The states have moved apart since 2020. Texas fell from 98.759 to 97.057 while Florida rose from 100.604 to 103.414.
Price levels by category
| Measure | Texas | Florida | Gap |
|---|---|---|---|
| All items | 97.057 | 103.414 | −6.357 |
| Goods | 98.083 | 98.059 | +0.024 |
| Housing (rents) | 96.503 | 122.107 | −25.604 |
| Utilities | 87.512 | 90.074 | −2.562 |
| Other services | 97.081 | 101.324 | −4.243 |
| Real income per person (2017 $) | $58,219 | $57,131 | +$1,088 |
Two state tax mixes, FY2025
Texas: $89.94 billion, $2,836 per resident. Florida: $63.55 billion, $2,709 per resident.
| Tax | TX share | FL share | TX per resident | FL per resident |
|---|---|---|---|---|
| Individual income | not levied | not levied | — | — |
| General sales | 62.8% | 62.9% | $1,782 | $1,705 |
| Property | not levied | not levied | — | — |
| Motor fuel | 4.4% | 6.2% | $124 | $169 |
| Other selective sales | 19.5% | 11.1% | $552 | $301 |
| Corporate income | not levied | 9.2% | — | $248 |
| Licenses | 4.5% | 3.9% | $127 | $107 |
| Severance | 8.9% | 0.0% | $252 | $1 |
| Other taxes | not levied | 6.6% | — | $179 |
Taxes on wages and purchases
| Tax | Texas | Florida |
|---|---|---|
| Income tax | no individual income tax | no personal income tax |
| State sales tax | 6.25% state rate plus up to 2% local | 6% general state rate |
Homestead property tax rules in Texas and Florida
Neither state taxes wages, so for an owner the homestead rules are a large part of the tax difference. In Texas, Tax Code Section 11.13(b) requires school districts to exempt $140,000 of a residence homestead's value; any taxing unit may add a local option exemption of up to 20% of appraised value (at least $5,000), and counties that levy farm-to-market or flood control taxes must exempt $3,000. On a $300,000 home, school taxes are figured on $160,000.
In Florida, Article VII, Section 6 of the state constitution exempts the first $25,000 of a homestead's assessed value from all property taxes and a further amount of assessed value between $50,000 and $75,000 from levies other than school taxes, with that second amount indexed to inflation. Section 4(d) limits each year's increase in a homestead's assessment to the lower of 3% or the change in the Consumer Price Index.
Sources, read : Texas Comptroller of Public Accounts: property tax exemptions; Florida Constitution, Article VII, Sections 4 and 6.
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