The Geographic Retirement Mistake That Looks Smart but Costs You $161,148

Nearly 46,000 retirement-age adults relocated to Florida last year. Warm weather and absence of state income tax are two reasons for its wide appeal. But they may want to think twice before they do, as just as many retirees find themselves leaving the Sunshine State.

A recent study from Hire a Helper found that nearly the same number of people ages 65 and older moved out, leaving the state with a net gain of just 815 retirement-age residents.

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South Carolina, on the other hand, had the nation’s highest net growth in its retirement-age population despite taxing at least some of retirees’ income. Many of those retirees moved to South Carolina from Florida. Judging by home prices alone, choosing South Carolina over Florida to begin with could save you from a $161,418 mistake.

Home Values: Florida vs. South Carolina

The Hire a Helper analysis broke down inbound moves by city. The average home value of the three Florida cities receiving the most retirees is $508,157, per Zillow data. The three most popular South Carolina cities averaged $346,739 — a difference of $161,418.

High home prices might not deter you from retiring to Florida, but they could make it difficult to stay there if other costs strain your budget.

Property Taxes and Homeowners Insurance

Property tax is based on the home’s assessed value. Homeowners insurance premiums are based on coverage amounts and many risk factors, including vulnerability to severe weather. Homeowners with mortgage loans usually pay both bills from an escrow account.

Florida homeowners have experienced one of the fastest escrow payment increases in the country — 70% from 2019 to 2025, according to a 2025 analysis from Cotality, compared to the national average increase of 45%.

A recent history of catastrophic storm damage is a major reason, and it has helped to push the average Florida homeowners insurance premium to $6,408 per year for $300,000 in coverage, according to Insurify. South Carolinians pay just $2,700 despite South Carolina also being a coastal state, albeit one with much less coastline.

South Carolina also has a lower effective property tax rate: 0.49%, one of the country’s lowest, versus 0.78% for Florida, per the Tax Foundation.

HOA Fees

Florida has more homeowner and condo associations than any state except California — 50,600, per Foundation for Community Association data. South Carolina has just 7,600, and they’re generally cheaper than Florida’s. As Realtor.com reported last year, even in Myrtle Beach, which has the state’s highest HOA fees, the median for listings reporting HOA fees was just $255 per month compared to $711 per month in Naples and $617 per month in Miami.

The difference stems from the high cost of master insurance in Florida as well as strict cash reserve requirements stemming from the collapse of Champlain Towers South in Surfside.

Look Beyond Income Tax When Deciding Where To Retire

High-income retirees could save money by moving to Florida, despite high housing costs. But a retiree with roughly $60,000 in annual income will reap much larger financial benefits by living in South Carolina instead. Despite a top tax rate of 5.21% (minus $966) for 2027, per the South Carolina Department of Revenue, generous tax breaks all but eliminate the burden for average-income retirees.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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