Moving from Florida to Charleston SC

The Insurance Advantage

Florida homeowners insurance has become a genuine crisis for many residents. Average Florida homeowners insurance premiums climbed above $6,000/year for many properties by 2024, with some South Florida policies exceeding $10,000–$15,000/year for homes above $500K in value. South Carolina coastal-adjacent rates are significantly lower — typical estimates for a $480K Summerville home run $1,800–$2,400/year. The annual insurance savings for a Florida buyer moving to a Summerville 55+ community can be $3,000–$7,000/year — substantial enough to materially affect the total cost comparison.

The Retirement Income Tax Trade-off

Florida has no state income tax — zero. South Carolina taxes IRA withdrawals and 401(k) distributions above $10,000/year for residents 65+, at rates up to 6.4%. A retiree drawing $60,000/year from retirement accounts goes from $0 in Florida income tax to potentially $3,200/year in SC. For buyers drawing modest retirement income (under $30,000/year from taxable sources), the SC income tax exposure is modest. For buyers drawing $75,000+/year from IRAs and pensions, the SC income tax becomes significant — potentially offsetting much of the insurance savings.

SC Property Tax vs. Florida

Florida's effective homestead property tax rate for primary residences is approximately 0.6–0.9% in most counties — comparable to SC. Florida has a $25,000 homestead exemption (some counties add an additional $25,000). SC's $50,000 senior homestead exemption for 65+ is more generous than Florida's base exemption, and SC's 4% legal residence assessment ratio produces competitive effective rates. Property tax is not the primary differentiator between the two states for 55+ buyers.