State Taxes & Requirements


Please refer to or one of the following websites for Florida relocation requirements and resources:

  • Elder Affairs (Retiring in Florida)
  • Department of Revenue:
  • See these sections of the Florida Statutes:
    • Section 222.17 (homestead exemption)
    • Section 1009.21 (residency requirements for tuition and state financial aid for education)
    • Section 196.015 (permanent residency)
    • Section 372.57 (fishing licenses)


  • Personal Income Tax: None
  • State Retail Sales Tax: 6.0%
  • Florida Corporate Income Tax: 5.5% on net income
  • Ad valorem (real estate) taxes combine city, county and school district levies, plus special assessments.
    • Homestead Exemption: Up to $50,000
    • Property is assessed at approximately 100% of true market value.
    • Bay County ranks among the lowest millage rates in the state
    • License Tax: 1% (Cities of Panama City & Panama City Beach only)
    • Gasoline Tax: 7 cents per gallon (local), 36.7 cents per gallon (state)
  • Infrastructure Surtax – used for infrastructure improvements
  • 1/2 cent sales tax for public school development

Name Change for United State Citizens

If you have legally changed your name by marriage or court order, you must submit the original or a certified copy of your marriage certificate or court order. No photo-copies will be accepted unless certified by the issuing authority. New residents who have a current driver’s license from another state are required to pass only the vision portion of the examination. First-time applicants must take vision, written and road tests. Applicants should make an appointment to take the drivers examination.

Driver’s Licenses and ID Cards –

The name assigned to the social security number must match the name that will appear on the Florida driver’s license or identification card. If you have recently changed your name, update your records with the Social Security Administration before you apply for your license or identification card. The cost for a first time Florida license is $48. The license is valid for eight years. License renewal is $48 and a replacement license is $25. Document requirement include: birth certificate, social security card, two proofs of residential address. Name changes must show marriage license or divorce papers.

Automobile Tags and Registration

New residents must register their vehicles and obtain a Florida license tag within ten days of establishing legal residency, beginning work, or registering children in the public school system. Military personnel and students are exempt. Proof of Florida insurance, your out-of-state title or registration, and a completed Florida State Form 82042 which verifies the vehicle’s identity number and odometer reading is required. Please visit the Florida Department of Highway and Motor Vehicles’ website at for more information or the Bay County Tax Collector website at

Bay County Tax Collector’s Offices/Division of Motor Vehicles Offices

(office hours are 8:00 a.m. to 4:30 p.m.)

850 W. 11 St.*
Panama City, FL 32401
(850) 248-8501

17109 Panama City Beach Pkwy*
Panama City Beach, FL 32413

801 Florida Ave.
Lynn Haven, FL 32444
(850) 271.8850
(written test only)

805 S. Tyndall Pkwy*
Callaway, FL 32404
(850) 872-4654

*also a DMV office – arrive before 3:00 p.m. for Driver’s License Testing