Updated October 7, 2026. Quick answer: No. Article VII, Section 5, paragraph (a) of the Florida Constitution allows no “tax upon estates or inheritances or upon the income of natural persons” who are residents beyond the federal-credit amount, so there is no Florida income tax withholding on an IRA or 401(k) withdrawal.
Florida withholding at a glance
| Item | What the documents say |
|---|---|
| Is it required? | No. The constitution limits any state income tax on residents to the federal-credit amount |
| Rate or amount | No rate: no Florida personal income tax is described in the documents read |
| How to start or stop it | Nothing to file: the constitution text read names no Florida withholding form |
| Direct rollover | The text read is silent on it; with no Florida income tax described, there is no Florida withholding to avoid |
| Changed for 2026? | No change stated; the constitution page read carries amendments to date |
What the Florida documents say
Article VII, Section 5, paragraph (a) of the Florida Constitution is headed natural persons. It bars any “tax upon estates or inheritances or upon the income of natural persons” who are residents or citizens of the state if the tax is “in excess of the aggregate of amounts which may be allowed” as a credit or deduction against a similar federal tax.
The documents read name no Florida personal income tax and no Florida withholding form.
A $50,000 withdrawal: cash in hand or a direct rollover
Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. Florida’s constitution leaves no net resident income tax to withhold: the Florida amount withheld is $0.
The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. A direct rollover therefore has no Florida withholding to avoid.
What the documents do not say
- The page rests on the constitutional text; it does not quote a Department of Revenue page. The text read states a ceiling on the tax rather than a sentence saying the state has no income tax. The documents read say nothing on rollovers or on any change for 2026.
Common mistakes
- Reading the constitutional ceiling as a tax rate; the section limits a tax, it does not set one.
- Assuming the estate and inheritance language in the same section is about withdrawals; this page covers income only.
Related: how Florida taxes 401(k) and IRA withdrawals, Florida retirement taxes, retirement withholding calculator, and retirement taxes by state.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for retirement withdrawals
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your withdrawals
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Constitution of the State of Florida (Article VII, Section 5): http://www.leg.state.fl.us/statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.