What NJ Homeowners Need to Know Before Buying in Florida in 2026

More Bergen County homeowners are buying in Florida than ever before. The combination of no state income tax, lower property taxes, warmer winters, and a growing community of NJ transplants in South Florida makes the move compelling. But the Florida home-buying process is different from New Jersey's in several important ways, and the differences can cost you money if you do not plan for them.

I am licensed in both New Jersey and Florida, and I help Bergen County homeowners navigate this transition regularly. Here are the things I tell every client before they start shopping for a Florida home.

Florida Has No State Income Tax — But That Is Only Part of the Story

The headline benefit of moving to Florida is the absence of a state income tax. For a household earning $150,000 to $200,000 a year, that alone can save $10,000 to $15,000 annually compared to New Jersey's top marginal rate of 10.75%. Social Security benefits, pension income, and IRA distributions are also tax-free at the state level. For retirees and near-retirees, the savings add up fast.

But the trade-off is that Florida collects revenue differently. Property taxes, while lower than New Jersey's on a percentage basis, are not negligible. And homeowners insurance in Florida is among the most expensive in the country. The total cost of ownership in Florida is often lower than New Jersey, but the savings are not automatic. You need to run the numbers for your specific situation.

For a full comparison of the financial differences, see our complete NJ-to-FL relocation guide.

Property Taxes: Lower Than NJ, But Know the Homestead Exemption

Florida's effective property tax rate averages about 0.75% of assessed value, compared to New Jersey's roughly 2.42%. On a $500,000 home, that translates to roughly $3,750 in Florida versus $12,100 in New Jersey — a meaningful difference every year.

The key to maximizing your Florida tax savings is the Homestead Exemption. If you own and occupy your Florida home as your primary residence as of January 1 of the tax year, you can exempt:

• $25,000 from all property taxes (school and non-school levies)
• An additional $25,000 to $26,411 exempt from non-school taxes
• Total potential exemption: up to $51,411 off your home's assessed value

You must apply by March 1 of the tax year through your county property appraiser's office. There is also a proposed constitutional amendment on the November 2026 ballot that could raise the exemption to $150,000 in 2027 and $250,000 in 2028. If that passes, the tax advantage of Florida homeownership will grow even larger.

Another hidden benefit: Florida's Save Our Homes amendment caps annual assessed-value increases at 3%, meaning your property tax bill cannot rise dramatically just because home values go up. For long-term homeowners, that cap is a powerful protection.

Homeowners Insurance: The Biggest Surprise for NJ Transplants

This is the number-one shock for NJ homeowners buying in Florida. Florida's statewide average annual homeowners insurance premium is approximately $3,815 — roughly three times the national average. In coastal counties like Broward, premiums average closer to $6,950. Inland counties are cheaper, around $2,300 to $2,800, but still higher than Bergen County rates.

The good news is that the market is softening. Citizens Property Insurance, Florida's state-backed insurer of last resort, announced an average 8.7% rate cut statewide for 2026. After several years of double-digit premium increases, the market is stabilizing as new private carriers enter and reinsurance costs moderate.

You will also need to budget separately for flood insurance if your property is in a flood zone. Even if it is not required by your lender, flood insurance is worth considering in much of South Florida. A standard homeowners policy does not cover flood damage.

When budgeting for a Florida home purchase, ask your agent for recent insurance quotes on the specific property before you make an offer. An annual premium that is $5,000 versus $8,000 can meaningfully change your monthly carrying cost.

The Buying Process: Different From New Jersey

Florida's real estate purchase process has several differences from New Jersey's that are worth understanding before you start making offers.

• No attorney review period. In New Jersey, buyers have a three-day attorney review window after signing a contract. In Florida, the contract is binding as soon as both parties sign. You need to have your due diligence items clear before you put pen to paper.
• Earnest money deposits. Florida customarily requires a larger deposit than New Jersey, often 5% to 10% of the purchase price, held by a title company or escrow agent.
• As-is contracts are standard. Most Florida purchase contracts are as-is, meaning the seller is not making repairs. Your inspection contingency is the time to negotiate credits or repairs, not after you waive it.
• Cash is still king in competitive markets. In desirable South Florida neighborhoods, all-cash offers remain common in 2026. If you are financing, a strong pre-approval and a larger deposit help your offer compete.

Establishing Florida Residency: The Legal Steps

If you are moving to Florida for the tax advantages, establishing legal domicile is critical. New Jersey is aggressive about claiming that former residents are still statutory residents if they maintain a home in NJ and spend more than 183 days a year there.

The steps to establish Florida residency are:

1. File a Declaration of Domicile (Fla. Stat. Section 222.17) with the Clerk of Circuit Court in your new Florida county
2. Obtain a Florida driver's license within 30 days and surrender your NJ license
3. Register to vote in Florida; cancel your NJ voter registration
4. Register your vehicles in Florida
5. Apply for the Homestead Exemption by March 1 through your county property appraiser
6. File a part-year NJ resident return (Form NJ-1040) and NJ-1040NR for NJ-source income after the move
7. Spend more days in Florida than in New Jersey — the 183-day rule is real, and the NJ Division of Taxation enforces it

Maintaining evidence of intent to make Florida your permanent home matters. Open bank accounts in Florida, join local organizations, update your will, and keep records of where you spend your time.

Which Florida Markets Should NJ Homeowners Consider?

The most popular Florida destinations for Bergen County movers are in Palm Beach County and Broward County. Boca Raton, Deerfield Beach, Boynton Beach, Jupiter, and Palm Beach Gardens consistently draw the most NJ transplants.

Boca Raton offers a mix of luxury communities, excellent schools, and a strong NJ transplant network. Deerfield Beach provides more affordable ocean-adjacent living with a laid-back vibe. Jupiter appeals to families who want top-rated schools and a less crowded beach experience. Palm Beach Gardens is a growing hub for golf-and-country-club living at a slightly lower price point than Boca.

For a detailed comparison of Florida destinations, see our South Florida neighborhood guide and the Boca Raton vs. Deerfield Beach comparison.

The Bottom Line

Buying a home in Florida from New Jersey is a major financial and lifestyle decision that requires planning. The tax advantages are real, but you need to factor in insurance costs, understand a different purchase process, and establish residency correctly to realize the full benefit. In many cases, the total savings of a $150,000 household with a $500,000 home can reach $17,000 per year when you combine income tax savings, lower property taxes, and a lower cost of living in key categories.

I help Bergen County homeowners navigate this transition from both sides of the transaction — selling their NJ home and buying in Florida. Whether you are two years out or ready to start the process today, I can help you plan the timeline and connect you with trusted professionals in your target Florida market. Licensed in both states, I guide clients from the first conversation to closing day in both markets.