By Hannah Collins
HANNAH COLLINS | The News
A recent study by financial technology company, SmartAsset, has ranked Washington County as one of the most tax-friendly places in Florida for retirees.
The study analyzed how tax policies across U.S. counties affect retirees living on a fixed income, focusing on key factors such as income, property, sales, and fuel taxes. Based on the findings, Washington County ranked fifth in the state, earning a “Retirement Tax Friendliness Index” score of 80.38.
Florida’s lack of a state income tax played a major role in the rankings. All forms of retirement income — including Social Security, pensions, and withdrawals from retirement accounts — are exempt from state taxation. While states without income tax often offset this by raising other taxes, Florida’s sales and property tax rates remain close to the national average.
To determine the rankings, SmartAsset evaluated each county based on the tax burden for a hypothetical retiree earning $50,000 annually from a mix of Social Security, pensions, wages, and retirement savings. Washington County retirees in this scenario paid:
- $5,558 in federal income tax
- 0.50% effective property tax rate
- $1,167 in sales tax
- $216 in fuel tax
SmartAsset weighted each tax category to generate a composite score, with income taxes comprising 40% of the index, property taxes 30%, sales taxes 20%, and fuel taxes 10%.
Other Florida counties ranking higher than Washington included Citrus, Walton, Collier, and Union.
SmartAsset, known for its personal finance tools and research, regularly evaluates how financial factors impact residents across the country.
Staff Report 
GARRETT VALCOURT