Taxes in The Villages
Beyond property tax, The Villages benefits from Florida's lack of a state income tax, and residents pay whichever county's sales tax rate applies to where they're shopping -- Sumter, Marion, and Lake counties all carry slightly different combined rates. There is no state estate or inheritance tax to plan around either.
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Learn moreNo state income tax
Florida has no personal income tax, a fact enshrined in the state constitution. This is frequently the single largest tax-line difference for retirees relocating from a state that taxes pension, Social Security, or investment income, and it applies uniformly regardless of which of the three counties your Villages home is in.
Sales tax varies by county -- unusual for a single community
For 2026, combined sales tax rates differ across the three counties The Villages spans: Sumter County and Lake County both carry a 7.0% combined rate, while Marion County carries a 7.5% combined rate, per Florida Department of Revenue surtax data. That means the sales tax rate on the exact same purchase can differ depending on which county's stores or shopping center you're in -- a genuine oddity of a community that straddles three county lines, and worth knowing if you're comparing the cost of shopping in different parts of the community.
No state estate or inheritance tax
Florida imposes no state estate tax and no state inheritance tax, a relevant factor for retirees doing estate planning as part of a relocation decision. Federal estate tax rules still apply regardless of state of residence.
CDD assessments are not a tax in the traditional sense, but they function like one
The CDD bond and maintenance assessments described in the property-taxes and buying-a-home topics appear on the same combined tax bill as ad valorem property taxes (as non-ad valorem line items) but are not property taxes -- they're special-district infrastructure financing tied to your specific home. They don't vary with home value the way ad valorem taxes do, but they are mandatory and enforceable the same way property taxes are if unpaid.
Key takeaways
- No Florida state personal income tax -- a major, uniform benefit regardless of which of the three counties your home sits in.
- Combined sales tax for 2026 differs by county within The Villages: 7.0% in Sumter and Lake counties, 7.5% in Marion County.
- No state estate or inheritance tax, though federal estate tax rules still apply.
- CDD bond and maintenance assessments appear on the same tax bill as property taxes but are a separate, non-ad valorem infrastructure charge, not a tax on home value.
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