Florida Economy: Jobs, Wages, and Cost of Living

Florida has the fourth-largest state economy in the United States. It has grown faster than most of the country for years, thanks to a steady inflow of new residents, a giant tourism industry, and an aging population that pulls in retirement income from across the U.S. The Florida economy looks different from Texas, California, or New York — it leans into services, real estate, and travel rather than manufacturing or finance.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Florida economy?

For example, Florida's recent state GDP has run around $1.6 trillion, according to the Bureau of Economic Analysis. Population is roughly 22.5 million, per the U.S. Census Bureau. Population growth has been one of the fastest among large states for more than a decade.

The biggest industries

A handful of sectors do most of the work in Florida:

• Tourism and hospitality — theme parks in Orlando, beaches across both coasts, cruise ports, and Miami's nightlife and conventions.
• Real estate and construction — population growth keeps demand for housing strong, especially in Tampa, Orlando, Miami, and Jacksonville.
• Healthcare — Florida's older population fuels a large hospital, clinic, and senior-living workforce.
• Trade and logistics — Miami is a major gateway to Latin America and the Caribbean; Jacksonville's port handles big container and auto volumes.
• Aerospace and defense — Cape Canaveral and the Space Coast host NASA, Space Force, and a growing private space industry.
• Agriculture — citrus, sugarcane, tomatoes, and cattle are still meaningful, even though citrus production has shrunk over time.
• Finance — Miami has become a fast-growing hub for banking, asset management, and crypto firms.

Jobs and wages

Statewide labor data is published by the Florida Department of Commerce / FloridaCommerce, with national-level numbers from the Bureau of Labor Statistics. For example, Florida's unemployment rate has typically run at or below the national average over the past several years, helped by the size of its service sector and steady population inflows.

The Florida minimum wage is set by a constitutional amendment that raises it $1 per year until it reaches $15 per hour. After that, it adjusts each year for inflation. That makes it well above the federal floor of $7.25.

Taxes in Florida

Florida is one of the small group of states with no state income tax. That is one of the most-cited reasons people and businesses move there. Like Texas, Florida funds itself through:

• Sales tax — the state rate is 6%, with most counties adding a local surtax of 0.5% to 1.5%.
• Property tax — set at the county level, with a homestead exemption that protects part of a primary residence's value from tax.
• Corporate income tax — Florida does tax corporate income, even though it does not tax personal income.

Florida also collects significant sales tax revenue from tourists, who effectively help fund state services. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Florida used to run below the national average, but that has shifted in much of the state since 2020. South Florida and parts of Tampa Bay have seen large home-price and rent increases. Smaller cities and parts of the panhandle remain more affordable.

The federal government tracks region-specific Consumer Price Index data through the BLS Southeast region, and HUD publishes Fair Market Rents for every county at HUD User.

How does the Florida economy fit into the national picture?

Florida's economy is unusually sensitive to two things most states don't depend on as heavily: tourism and retirement money. National recessions hit Florida hardest in the tourism sector. On the other hand, Florida benefits in a different way from Social Security and Medicare, because so many residents collect benefits funded by the rest of the country. The Social Security Administration publishes data on benefit payments by state.

Hurricanes and home insurance

Florida's geography means hurricanes are a permanent part of the economic picture. Major storms damage homes and businesses, push up insurance premiums, and shape where people choose to build. Home-insurance affordability has become one of the more talked-about issues in the state. Federal disaster aid runs through FEMA, and the long-term climate and storm record is tracked by NOAA.

Migration and population growth

Florida has consistently been one of the fastest-growing large states for more than a decade, both from retirees moving south and from working-age families and remote workers relocating from higher-tax states. The U.S. Census Bureau tracks the year-by-year change. Faster growth means more housing demand, more school enrollment, and more pressure on roads and water systems — much of which Florida is still building out.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Florida Department of Commerce for the most current data.