Tax Credit in Florida

When thinking about estate planning, one of the biggest concerns people have is how taxes will affect their loved ones. Many wonder if Florida imposes special taxes on inheritances or if the federal government taxes their estate. Trying to find clear answers can be confusing. That’s why working with an experienced estate planning lawyer in Coral Gables is so important.

Our firm, The Estate Plan, is dedicated to guiding clients through the sometimes complicated topic of taxes and estate planning. We believe in making each step understandable and clear.

With laws always changing, it’s important to stay informed about what taxes—if any—your beneficiaries might face when you pass away. Knowing how Florida and federal tax rules apply to estates can help you plan better and protect your loved ones from unexpected financial burdens.

Table of Contents

• Why Choose The Estate Plan for Estate Planning and Tax Issues in Coral Gables, Florida?
• Is There a Tax Credit in Florida?
• Federal Estate Tax in Florida
• Overall Tax Picture in Florida
• What Happens if I Inherit a House in Florida?
• Reach Out to Our Coral Gables Estate Planning Attorneys Today

Why Choose The Estate Plan for Estate Planning and Tax Issues in Coral Gables, Florida?

When you’re looking for help with estate planning and tax issues in Florida, it helps to have an experienced law firm that understands the details of both state and federal rules. The Estate Plan is located at 2625 Ponce de Leon Suite 280, Coral Gables, FL 33134, near Ponce Circle Park. We are proud to serve families in Coral Gables and across Florida with our dedicated experience and client-focused approach.

Our team of Coral Gables attorneys will take the time to explain how different estate planning tools—such as wills, trusts, and powers of attorney—affect the taxes your heirs might pay. We also keep up with changes in federal tax laws and how they impact Florida residents.

Our Coral Gables estate planning attorneys recognize that this type of planning usually happens during important life events, such as retirement, the birth of a child, or just a desire to ensure your legacy is protected. Because estate and tax matters can be emotional, our goal is to offer both professional guidance and an empathetic ear. You can trust us to put your family’s best interests first, carefully listening to your concerns and offering clear, step-by-step advice.

Is There a Tax Credit in Florida?

A tax credit is a financial benefit that reduces the amount of taxes you owe, dollar for dollar. For example, if you owe $2,000 in taxes and you qualify for a $1,500 tax credit, you only have to pay $500. It’s natural to wonder if there is a specific tax credit you can use for estate planning in Florida, especially if you’re worried about how your estate will be taxed after your death.

Before December 31, 2004

Originally, Florida had an estate tax linked to a federal tax credit for state death taxes. This meant that if you were required to pay federal estate taxes, you can claim a credit on your federal return for the estate taxes paid to the state. Because Florida’s state estate tax was tied to that credit, everything changed when the federal credit was phased out on December 31, 2004.

On or After December 31, 2004

Once the federal government replaced the estate tax credit with a deduction, Florida’s estate tax credit no longer existed. As a result, estates of people who died on or after December 31, 2004, typically aren’t subject to any Florida estate tax. This change made Florida an even more appealing state for retirees and others looking to minimize their tax burden.

Still, you may want to speak with an estate planning lawyer in Coral Gables to fully understand which deductions are available when it comes to estate-related costs. Common deductions can include funeral expenses, the cost of administering the estate, unpaid bills, mortgages, or other financial liabilities. Additionally, Florida does not impose an inheritance or gift tax.

Federal Estate Tax in Florida

Even though Florida no longer has its own estate tax, the federal government may still require certain estates to pay federal estate taxes. The amount you can leave behind without triggering federal taxes is called the estate tax exemption, and it changes from time to time.

The IRS has announced that the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will increase to $13,990,000 per individual in 2025. This represents a $380,000 increase from the 2024 exemption of $13,610,000. For married couples, this means a combined exemption of $27.98 million.

Overall Tax Picture in Florida

Florida is widely viewed as a tax-friendly state. There is no personal income tax, and it does not impose inheritance or estate taxes for anyone who passed away after December 31, 2004. Retirement income, social security, and pensions are free from state tax as well. This can be a big advantage if you’re deciding where to live in your later years and how to plan your estate. Even so, federal taxes may still apply, so it’s wise to seek advice about how best to organize your assets.

What Happens if I Inherit a House in Florida?

When you inherit a house in Florida, you gain both the rights and responsibilities of ownership. You may have to continue insurance coverage on the home, and if you plan to live there, you might qualify for Florida’s homestead exemption. If you decide to sell the house, you may owe capital gains tax on any increase in the home’s value from the time of the original owner’s death to when you sell it.

Reach Out to Our Coral Gables Estate Planning Attorneys Today

If you have any questions about estate taxes, federal exemptions, or how Florida’s laws might apply to your situation, please reach out to The Estate Plan at (305) 735-2689. Our office is located at 2625 Ponce de Leon Suite 280, Coral Gables, FL 33134, near Ponce Circle Park.

We are here to offer guidance, handle the legal details, and ensure your estate plan reflects your goals. With proper planning and our assistance, you can rest assured that your desires will be carried out and your family members can avoid unnecessary financial burdens. Don’t delay, it’s important to call today.