Is Living in Georgia Cheaper Than Florida?

A common inquiry involves comparing the cost of living between Georgia and Florida, both popular destinations for their climates and diverse economies. This article provides a detailed comparison of expenses, offering insights into whether living in Georgia is generally more affordable than in Florida. Understanding these differences can help individuals make informed decisions about their potential new homes.

Housing Costs

Housing expenses represent a substantial portion of living costs for residents in both Georgia and Florida. In Georgia, median home prices can vary significantly, with more affordable options found in cities like Albany, where median home values are around $124,454, and Columbus, with median home values near $157,861. For renters, Macon offers average monthly rents around $1,195, while Savannah’s median house rent is about $2,000. High-cost metropolitan areas, such as Atlanta, typically feature higher prices compared to smaller towns like Americus, which has a median house rent of $750.

Florida’s housing market also presents a range of costs, influenced by its coastal appeal and population density. Affordable cities include Titusville, with a median home value of $243,100, and Ocala, where the median home value is approximately $275,429. Median rents in Florida also vary, with Ocala averaging around $1,750 per month. More expensive areas are typically found along the coastlines and in major urban centers, such as Miami or Fort Lauderdale, where demand drives prices upward.

Everyday Expenses

Beyond housing, daily necessities contribute significantly to the overall cost of living. Utility costs show a notable difference between the two states. The average monthly utility bill in Georgia can range from approximately $570 to $598, encompassing electricity, natural gas, water, and internet services. Conversely, Florida’s average monthly utility costs are generally lower, around $477. Electricity often constitutes the largest portion of these utility bills in both states.

When it comes to groceries, Georgia generally presents a more favorable environment for consumers. Grocery costs in Georgia are about 9.1% less expensive compared to Florida. Other miscellaneous daily costs, including personal care items, household supplies, and basic entertainment, also tend to be lower in Georgia, contributing to its overall affordability in this category.

Transportation and Healthcare Costs

Transportation and healthcare expenses are two other significant areas that impact a household’s budget. Gasoline prices in Georgia are typically lower, averaging around $3.49 per gallon, compared to Florida’s average of $3.63 per gallon. Vehicle insurance premiums also show a difference, with average annual costs in Georgia at approximately $2,080, while Florida residents generally pay around $2,385 per year.

Vehicle registration in Georgia involves a Title Ad Valorem Tax (TAVT), a one-time tax paid when a vehicle is titled. The TAVT rate is currently 7.0% of the vehicle’s fair market value for purchases and 3% for new residents registering their vehicle for the first time. Healthcare costs also differ, with average monthly expenses per person for healthcare in Georgia estimated at $474, which is lower than Florida’s average of $599 per month. These figures represent general averages, and individual costs can vary based on insurance plans and healthcare needs.

Taxation Landscape

The tax structures in Georgia and Florida present distinct financial environments that influence overall living costs. Georgia imposes a state income tax, which is a flat rate of 5.39% for 2024 income. In contrast, Florida does not levy a state income tax, which can result in significant savings for individuals with higher incomes.

Sales tax rates also differ between the two states. Georgia has a state sales tax rate of 4%, but when local sales taxes are included, the average combined rate is around 7.38%. Florida’s state sales tax rate is 6%, with local discretionary sales surtaxes causing the combined rate to range between 6% and 8%. These local surtaxes vary by county and can impact the total cost of goods and services.

Property taxes are calculated differently in each state. In Georgia, property is assessed at 40% of its fair market value, and this assessed value is then multiplied by local millage rates to determine the tax bill. Georgia’s effective property tax rate on owner-occupied housing is approximately 0.72%. Florida’s property taxes are calculated by taking the assessed value, subtracting any exemptions, and then applying the local millage rate. The average effective property tax rate in Florida is slightly higher at 0.80%. Florida also does not have an inheritance or estate tax.