Updated October 16, 2026. Quick answer: Florida does not tax an inherited IRA withdrawal at the state level: the Department of Revenue’s new-resident brochure says “Florida does not impose personal income tax, inheritance tax, gift taxes” and the federal tax still applies.
Florida at a glance
| Item | What the documents say |
|---|---|
| How the state taxes retirement-account income | No state personal income tax |
| Do the state’s documents address beneficiaries? | Not addressed: there is no state income tax to apply to it |
| Retirement exclusion or credit | Not needed; there is no state personal income tax |
| Rate in the documents read | Not applicable |
| State inheritance or estate tax | No inheritance tax; the estate tax was eliminated for deaths after December 31, 2004 |
| Changed for 2026? | The documents read do not address any 2026 change |
What the Florida documents say
The Florida Department of Revenue’s brochure for new residents says Florida does not impose a personal income tax or an inheritance tax, so a withdrawal from an inherited IRA is not taxed by the state when you live there.
The Department’s estate tax page adds that a federal change “eliminated Florida’s estate tax on people who died after December 31, 2004” and points to Chapter 198 of the Florida Statutes. The Florida Senate’s statute index for that chapter lists “198.02 Tax upon estates of resident decedents” as its tax section; this page does not interpret the statute.
Federal income tax on the withdrawal is separate and is covered in the 10-year rule section below.
The federal 10-year rule and your Florida tax year
IRS Publication 590-B says a beneficiary may be required to take the entire account balance by the “end of the 10th year following the year of the owner’s death”, with exceptions for certain beneficiaries. Because the balance generally has to come out within that window, the timing of each withdrawal decides which tax year it lands in. See the 10-year rule and annual RMDs, lump sum versus spreading withdrawals and inherited IRA rules.
Withholding and other state taxes
Whether a state withholds from a withdrawal is a separate rule: see state withholding on retirement withdrawals. For Florida’s own death taxes, see Florida inheritance tax.
What the documents do not say
- The documents read do not mention inherited accounts or beneficiaries of retirement accounts.
- The brochure and the estate tax page are the only Florida documents read; a Florida constitutional text was read but not cited.
Common mistakes
- Assuming Florida’s rule for your own retirement income also covers an account you inherited: read whether its documents address beneficiaries, and confirm the point with a Florida preparer.
Related: state tax on inherited IRA withdrawals, state by state, whether Florida taxes 401(k) and IRA withdrawals, Florida retirement taxes, Florida inheritance tax, inherited IRA rules, spouse versus non-spouse beneficiary rules, and state withholding on retirement withdrawals.
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Answer againSources
- Tax Information for New Residents (GT-800025 R. 08/25): https://floridarevenue.com/Forms_library/current/brochure/gt800025.pdf
- Florida Estate Tax: https://floridarevenue.com/taxes/taxesfees/Pages/estate_tax.aspx
- 2025 Florida Statutes, Chapter 198 Estate Taxes: https://www.flsenate.gov/Laws/Statutes/2025/Chapter198
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Sources: the primary documents linked above, read on October 16, 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.